Diebold announced some interesting new technology which may not only help to keep their ATMs relevant, but also may help financial institutions protect the relevancy of their cards, especially debit cards, as mobile payments begin to catch on. Financial institutions (FIs) are concerned that their brand and their cards will be disintermediated as consumers put their card credentials in a mobile wallet where the wallet brand becomes more prevalent and the card takes a back seat. For an FI, making sure their card is the one that gets into the mobile wallet is critical. Diebold has crafted a solution in partnership with SimplyTapp that lets consumers add their cards to their preferred mobile wallet at the ATM:
To enroll in their bank’s mobile wallet, a customer must insert their card at the ATM and enter their PIN. On the machine’s screen they are given the option to sign up to the wallet and if they choose to, are asked to enter their phone number. They then receive a text with a link to download the app.
Automatically, the customer’s card data is encrypted in the form of tokens and transferred from the ATM to the card issuer’s virtual cloud via SimplyTapp’s HCE technology. The user can then start making contactless mobile payments.
I’m not sure I want to be behind the guy who decides to add his card to a mobile wallet at the drive through ATM, but for in-branch ATMs this could work. An interesting scenario for a new account strategy could include the combination of an in-branch, instant issue debit card followed by a walk over to the ATM where the customer can immediately add their just printed new card to their favorite payment wallet
Oveview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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