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ATM & Mobile Executive Summit: Thoughts from the president

The premise of last week's Summit was that the ATM, a 50 year-old technology, is converging fast and furiously with mobile.

October 4, 2013 by Tom Harper

Tom Harper is president and founder of Networld Media Group, which publishes ATM Marketplace and Mobile Payments Today.

The premise of last week's ATM & Mobile Executive Summit was that the ATM, a 50 year-old technology, is converging fast and furiously with mobile, a tech newcomer.

As the roughly 100 high-level delegates learned, the marriage may be promising, but it's not altogether frictionless.

For example, a lively debate between ATMIA CEO Mike Lee and Greg Baxter, Citi head of global digital strategy, dealt with the tension between cash and electronic payments. Neither panelist denied that consumers want both forms of payment, but neither side ceded future trends, either.

In fact, global central bank data show that consumer demand has been steadily increasing for both cash and mobile payments. How that is possible was best explained by George Wallner, CEO of Loop: "We're always going to have a world where several interface [payment] technologies are available." 

But this summit wasn't just about tech convergence. Speakers from sectors such as payment regulation, financial institutions, security, retail, technology, ATM deployers and cards spoke on the future of payments from their own perspectives.

Leland Englebardt, a respected colleague who heads up ATM and global network products for MasterCard, faced a panel made up of representatives from the CFPB, FDIC, Treasury and the Federal Reserve Board.

He was perplexed at the statements he was hearing from the panelists. They said things such as "cash is the contingency backup" and "there are obvious benefits to using cash."

Leland stared at them for a moment before asking his question: "So what you're telling me is that the government is supporting the use of cash while at the same time encouraging electronic payments?"

The mystery of the ATM/mobile convergence couldn't have been expressed more succinctly.

The editors at ATMmarketplace.com and MobilePaymentsToday.com have observed several developments that have contributed to the coupling of ATMs and mobile. These include:

• mobile banking apps with advanced functionality are now a customer expectation;
• cardless/contactless ATMs offer revolutionary technology such as pre-staging via cell phone;
• ATM-locating functionality is showing up in the newest mobile banking apps;
• more than half of U.S. adults have smartphones; among those aged 18–29, two-thirds own smartphones;
• globally, there are more mobile phones than bank accounts;
• RBR says the total number of ATM cash withdrawals worldwide is expected to increase 8 percent per year through 2016, even in a supposedly saturated market; ATM installations will continue to grow 6 percent per year;
• the global installed base of ATMs will increase by 42 percent to 3.2 million machines by 2016; and
• cash in circulation is growing in the U.S. by 6 percent per year.

It was evident at the summit that ATMs and mobile payments are equally global, and the U.S. has a lot to learn from the industry beyond its borders. We were thankful for the delegates from Argentina, Canada, Colombia, France, the U.K., Indonesia, Mexico and Puerto Rico.

The overwhelming desire of delegates to attend this summit again prompted us to reserve Sept. 17–18, 2014, as the reconvening of this fascinating conversation in D.C. Our goal will be to look through a wider global lens at the technology, security and regulation of ATM/mobile convergence.

Until then, we'll continue the conversation with you on the virtual pages of ATM Marketplace and Mobile Payments Today.

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