|The concept of using a mobile device as payment over credit or debit cards is not new, but it’s not yet a reality for most consumers. Members of Diebold Federal Credit Union (DFCU), however, will soon be the first in the world to be a able to access an ATM through their mobile phone, according to the Credit Union Times.
Diebold, a manufacture of ATMs, is testing its new ATM that replaces a card reader and PIN pad mobile authentication at its very own credit union. “When a consumer scans a unique QR code at the ATM using a smartphone, the ATM authenticates the user via cloud-hosted services to enable secure, cardless transactions,” according to a press release from Diebold.
The mobile authentication system also improves ATM security, Diebold says, because it eliminates the threat of card skimming or the need to shield a PIN pad from prying eyes.
Mobile Wallet and Authentication for ATMs Inspired By Millennials
“To develop the Millennial-inspired ATM, we studied the digital and social habits of today’s younger generation,” said Frank Natoli Jr., chief innovation officer of Diebold.
“The research led us to choose mobile devices for both the user interface and the authentication vehicle to ensure seamless connectivity between devices. Adding mobile wallet capabilities further capitalizes on the mobile mentality of Millennials. Together, the technologies provide a glimpse of the future of self-service banking for today’s connected consumers,” Natoli said.
The ATM offers other features tailored to millenials’ habits, such as emailing instead of printing receipts. It also includes integration with the company’s custom mobile wallet solution, Mobile Cash Access, which allows users to pre-stage withdrawals on their smartphone so that the preselected cash amount is dispensed immediately upon authentication.
This innovative ATM is making great use of new technology, but getting rid of PIN pads and card readers could alienate consumers of other generations who might not be as tech-savvy as millenials. While mobile authentication is a convenience for some customers, others might prefer the old swipe-and-PIN system. But if the new ATM is a success for Diebold, this technology could become more common in coming years.