In recent years, there has been an increase in the use of cardless ATM authentication, also known as remote cardless cash access (RCA). This technology allows users to withdraw cash from an ATM without using a physical debit or credit card. Instead, they simply enter their mobile phone number into the ATM and then receive a one-time code that can be used to access their account. Although RCA offers a number of advantages over traditional ATM cards, there are also some potential security risks to consider.
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Data for today’s episode is provided by Mercator Advisory Group’s report –2020 Annual U.S. Debit Card Market Data Review
3 Types of Cardless ATM Authentication Might Emerge Given the Pandemic:
- NFC ATMs: near field communication using a mobile phone plus ATM.
- One-Time Password: a cardholder opens their banking app and asks to receive a one-time password.
- One-Time Password: The user enters the one time password and ATM PIN and proceeds with a typical ATM transaction.
- QR Code: cardholder opens their banking app and asks for contactless; some systems allow for requests like $ amount.
- QR Code: an ATM will produce a QR code, which a consumer will snap with their phone to finalize the transaction.
- According to Mercator, only 4% of consumers had tried a cardless form of ATM access in 2019.
About Report
Debit card activity in the United States was very brisk in 2019, posting strong growth, but the future growth of debit cards and how they will be used will change materially as the economy is altered by the impacts of the global novel coronavirus pandemic. Mercator Advisory Group’s latest research report, 2020 Annual U.S. Debit Card Market Data Review, presents data on how the market was progressing and what the future may hold for debit card issuers and cardholders.
“Use of debit cards now and in the near term will be slowed the most by historically high unemployment, which affects typical debit card users, who make less than $75,000 annually on average, and by the closure of all but essential retailers. Offsetting this is the trend seen in the past of consumers favoring debit during recessionary periods,” commented Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group, author of the report.
