Your ATM card isn’t yet obsolete, but it may be getting there.
As more consumers rely on their smartphones for banking, lenders are introducing technology that will allow you to conduct an ATM transaction with your phone – eliminating the need to swipe plastic.
On Wednesday, San Francisco-based Wells Fargo became the latest bank to announce plans for such technology. Customers will be able to start a transaction, such as withdrawing cash, on their phone before heading to an automated teller machine. Customers will complete their transaction at the ATM, where they will enter their PIN and a one-time code generated by the smartphone app.
Wells Fargo said its “virtual card” service will be available in the late third quarter or early fourth quarter of 2016. Wells Fargo customers will still have the option of using plastic cards at the ATMs.
Consumers’ interest in their mobile devices and the growth in both intelligent deposit ATMs and new smartphone capabilities are expanding banking options for banking customers. One capability in particular is creating widespread interest and excitement in the industry. Called ATM prestaging (or cardless cash access or mobile cash access, depending on the provider), it offers the ability to plan a withdrawal on a mobile device and then visit an ATM to withdraw cash using a QR code or one-time PIN. These solutions are gaining traction in the market, and are accelerating the convergence of mobility and ATMs at an increasing number of financial institutions.
Overview by Ed O’Brien, Director, Banking Channels Advisory Service at Mercator Advisory Group
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