The migration from the leather wallet to the mobility-based electronic wallet took another step forward with Chase’s introduction of smartphone-as-access enablement of ATMs. The demonstration showcases use of a smartphone’s NFC capability and the fingerprint reader authorization protocols are further verified with the use of a pin code to gain account access. The author of the article surmises the enhanced access will help keep traditional banking relevant in the face of expanding use of P2P capabilities.
As payment apps like PayPal’s Venmo and Jack Dorsey’s Square continue to rise, the linking of ATMs to mobile phones has become a natural next step for transferring money and split bills when cash isn’t available.
Mercator Advisory Group would also point out some specific use case scenarios not mentioned by the author. By dispensing with the card to access funds at an ATM, it will make it that much harder for moochers to have “forgotten their wallets at home”. Further, Chase’s updated banking machines will dispense a wider range of bills as well, allowing for the use of “exact change” to fulfill interpersonal transactions in those situations where trust is being established (e.g. Dutch date).
Overview by Joe Walent, Senior Analyst, Emerging Technology Advisory Service at Mercator Advisory Group
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