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Will EMV lead to more contactless ATMs?

Some forward-looking independent ATM deployers have begun to develop strategies for implementing contactless ATM transactions.

October 16, 2014 by Terry Dooley — SVP & CIO, ITS, Inc

As we forge ahead into the digital age, one question comes to the forefront: Will cardless transactions be an important part of the future for ATMs?

This question naturally leads to the consideration of best practices for channel convergence.

Some forward-looking independent ATM deployers have begun to develop strategies for implementing contactless ATM transactions. According to the 2014 US Independent ATM Deployer Survey, 35 percent of IADs currently have such plans in the works.

Whether ATMs will go the way of contactless remains to be seen. However, the ATM Industry Association recently released a white paper to educate IADs about the future of mobile ATM technology. "Cardless ATMs: Are Mobile Transactions the Future of the ATM Industry?" takes a look at emerging technology considerations and what’s next for IADs.

Specifically, the paper examines present and future technologies that IADs should think about implementing within an EMV-based payments framework.

The document includes an overview of cardless technology and how it operates. It also examines how EMV and NFC cardless transactions differ, and the ATM solutions currently available. Lastly, it looks at the ways industry leaders are managing the rollout of cardless ATM transactions.

"What IADs must consider when upgrading to EMV are the types of transactions they plan to accept five to 10 years from now," Bryan Bauer, president of Kahuna ATM Solutions, said in a press release about the report. “We need to be thinking about how we can ultimately make EMV-compliant ATMs cardless-acceptance ATMs to meet the demands of our technology driven society.”

Given ATMs’ projected 3 million machine global footprint and the ongoing worldwide demand for cash, there is no reason why the ATM cannot remain a leading self-service channel. As ATMs continue to evolve to become more customer-friendly and intuitive in a digital world, cardless transactions are an important consideration for ATM stakeholders worldwide.

photo courtesy xyinle | flickr