Software

What's the basics of XFS?

Although XFS has been around for more than 30 years, there are still updates and improvements being made to it, such as XFS4IoT, and there are other lesser-known features that operators need to be aware of.

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October 2, 2026 by Bradley Cooper — Editor, Connect Media

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Extensions for Financial Services dates back to the early 1990s as a way to establish a client-server architecture for peripheral devices on ATMs. In 1998, CEN (the European Committee for Standardization) officially adopted XFS.

Although the technology has been around for more than 30 years, there are still updates and improvements being made to it, such as XFS4IoT, and there are other lesser-known features that operators need to be aware of.

How it's changed

Adrián Martinez, senior XFS technical lead at Serquo stated in an email interview that XFS has been updated throughout several versions, with the most recent being 3.50 in 2022.

They add that each version keeps "the same C-based API while progressively extending and refining device classes such as cameras, barcode readers and biometrics that had already been introduced in earlier releases."

CEN is also working on XFS4IoT, which is "a completely redesigned version of the standard based on JSON messages exchanged over WebSockets."

XFS4IoT

The XFS4IoT website notes that it replaces the existing standards and is built specifically for retail banking. Key features include:

Hardware agnostic
Migrates from XFS 3 versions.
Security protocols at the app level.
Can integrate ATM devices from multiple vendors.
Features an open-source API.

KAL notes that theSp-Dev version of XFS4IoT is OS-agnostic, meaning operators can utilize OS other than Windows, such as Linux and Android.

Its website notes, "Each ATM device is managed by XFS4IoT as a separate web service. This means, for instance, that a card reader company can create its own XFS4IoT SP independent from an Encrypting PIN Pad company that can create its own SP. These independent SPs can then co-exist inside a single ATM or can operate without being physically integrated at the hardware level. This opens up the possibility of flexible new architectures where a core ATM may be fortified with components from multiple other hardware companies, integrated and held together by a software application running in the cloud."

Lesser known features of XFS

Martinez noted several lesser known features of XFS such as its event-driven mode, which enables "real-time monitoring of hardware status." This is particular useful for identifying jams in the dispenser or tampering.

He said "the depth of its security-related service classes, which are increasingly relevant given rising physical and cyber threats to ATMs. Features like end-to-end (E2E) security or PIN/Password Entry enhancements was included in the latest version," along with, "how much flexibility exists within the standard itself. Two XFS-compliant implementations can still behave very differently depending on how well they're configured and tested."

Where can things go wrong?

Although much progress has been made in delivering an interoperable system that can use multiple different types of devices, there are still are challenges to getting everything working properly, such as the hardware, firmware and software.

"Devices that combine multiple functions (like cash recyclers) are more difficult to implement or use correctly under the XFS model," Martinez said.

Manufacturers also can cause issues, as they "interpret parts of the standard slightly differently, which can create Edge cases and different behaviors depending on the vendor. Devices and service providers that technically comply with the same standard behave differently under real-world conditions."

Each update can throw off this delicate balance, as unforeseen compatibility issues arise.

Getting ahead on XFS

There are many ways for operators to get ahead with XFS. One is to have a close relationship with all their vendors, identifying key issues before they are arise.

Another is to take advantage of free resources, such as Serquo's free training course, an hour video that provides practical examples on how to use XFS.

"Participants will come away with a practical understanding of what XFS actually is beyond the documentation definition, an understanding of both 'happy path' and error flows, how to recognize common compliance pitfalls before they cause downtime or security exposure, and what a rigorous testing and validation process looks like in real operational environments, knowledge they can apply immediately to their own fleets," Martinez said.

It's all in the implementation

In order to successfully use XFS, operators need to have a firm grasp how they plan to implement it.

"XFS often gets treated as a "solved problem" because it's been around for so long, but the reality is that the standard is only as strong as its implementation. As threats to ATMs grow more sophisticated and fleets become more heterogeneous, understanding XFS properly (not just using it) is becoming a genuine competitive and security advantage," Martinez said.

About Bradley Cooper

Bradley Cooper is an experienced editor for Connect Media. He has written across a wide range of beats, ranging from food to digital signage to banking, and is the current editor of ATM Marketplace and Food Truck Operator. His background is in information technology, advertising, and writing. When he’s not crafting a story, you can find him going for a run or spending time with his wife and three sons.

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KAL ATM Software

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Serquo Software

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