ATMs for contactless cards have been available in countries like Spain and Canada for a while now, but they haven’t been adopted by the US. However that will allegedly soon change. Due to the increase of mobile payment services such as Apple Pay, Samsung Pay, and Android Pay, banks have begun the process of bringing contactless ATMs to the US.
According to reports from Wired and TechCrunch, Chase, Bank of America, and Wells Fargo are all working on creating NFC-enabled ATMs. Chase is allegedly planning on making them go public later this year.
The US bank Chase is aiming to be rolling out their contactless ATM plan in two phases over this year, and next year, according to Wired. The first phase of the plan will ask users to authenticate the transaction on their mobile banking app which will give them a seven digit code that allows them to access the ATM without their bank account without a debit card.
“This doesn’t replace the debit card. It’s just giving customers a more convenient choice in case they don’t have their debit card on them.”
Chase spokesman Michael Fusco told Wired. The next phase in Chase’s plan may replace the physical debit or credit card.
Chase says it will roll out NFC-equipped ATMs later in 2016. These will let you access your ATM in the same way you access your credit cards on Apple Pay and Android Pay, and let you draw money out from the hole in the wall with a mere tap of your phone.
Wells Fargo and Bank of America will also adopt NFC-equipped ATMs later this year, according to TechCrunch, but neither of the banks have confirmed that their services would work with Apple Pay. While neither of the banks would open their lips about whether Apple Pay would be supported, TechCrunch is reporting that both banks are working on supporting the mobile payment service from Apple.
The use of contactless ATMs by major banks in US will help to cut down on card skimming and fraud if users choose to take this new automated solution. With no physical debit card to swipe, criminals would have to figure out how to crack the tough encryption on Apple and Google’s mobile payment services, which is not an easy task.
Bank of America is looking like it will be first US bank to roll out the new ATMs. The bank told TechCrunch that they will begin rolling out the new ATMs in late February at “select ATMs in Silicon Valley, San Francisco, Charlotte, New York and Boston, followed by a wider roll out to customers mid year.”Via: The Verge