Expanding the utility of the ATM has been a cost/benefit ratio problem for some time. A number of “über ATMs” (capable of check deposit –never mind cash –deposit) have been pulled out of locations where simple cash dispensing is all that’s required. In cost reduction mode, some banks have even pulled their ATMs out of malls and other less trafficked locations.
But for banks looking to automate customer service and expand footprint, the ATM can’t be beat. And, if expanding useful capability is simply a software upgrade at the ATM instead of a costly new hardware capability (multiple check deposit for example), then that’s a very good thing. P2P funds transfers, and casual bill payment, are such opportunities, and for those financial institutions running NCR SelfServ ATMs and S1-based transaction management, there is a new way to make that happen. The ATM can now be used to reach around 100 million active PayPal accounts for both domestic and international funds transfers.
PayPal is working hard to win over financial institutions. For a long time, PayPal was painted as the enemy but that perception is fading as its growing ubiquity, strong fraud controls, and very low cost to the FI makes partnering with the firm increasingly attractive. PayPal rails reach far and wide and that’s a top criterion for a successful P2P service.
After authenticating themselves at NCR SelfServ ATM, customers will be given the option to send money to an individual. To do so, they enter the recipient’s e-mail address or mobile number, choose an amount to transfer, and the money will be immediately credited to the recipient’s PayPal account.
The partners are pitching the service to banks running on the S1 payment platform and using NCR Aptra Edge in the US, with availability slated for the first quarter.
Dan Schatt, GM, financial innovations, PayPal, adds: “Offering PayPal payments through the ATM channel can enable businesses to instantly pay their overseas or domestic suppliers and retail bank customers to send international and domestic payments, all with a few taps on an NCR ATM machine.”