Innovation

3 Indian banks testing contactless ATMs

June 5, 2020

In the wake of the coronavirus, Mumbai-based AGS Transact Technologies, a provider of cash management services in India, is testing its contactless ATMs at three local banks, according to a report in Times of India. 

Instead of the traditional magnetic stripe card and PIN number to identify the cardholder, the contactless ATM requires the customer to use their mobile device to click on the bank's mobile app. A QR code is given to them via the app and they use their mobile device to scan that code on the ATM screen. The machine uses the code to identify the account. During a withdrawal, the customer will enter the amount they wish to withdraw and their PIN number on their mobile device. The contactless ATM will interact with the app and then distribute the cash, allowing the customer to collect the money without ever touching the screen or hardware.

Larger banks within the country, such as ICICI Bank and the State Bank of India, have also been researching new applications for customer safety in light of the coronavirus, but the applications have either required users to touch the keypad or only worked exclusively for a specific bank's app.

According to AGS Transact's CTO, Mahesh Patel, the contactless ATM's QR code is safer to use than a debit card because it eliminates the risk of being skimmed. The process to make a withdrawal is also faster, taking approximately 25 seconds from start to finish, according to the report.

The upside for banks wanting to use a contactless ATM is the software application can be integrated within a bank's existing app. The downside is the software could take up to eight weeks to integrate, given that banks have multiple service providers for mobile banking, ATM operations and maintenance.

"Our new touchless ATM solution is an extension of the flagship QR Cash solution, which ensures safety of the users and will provide a seamless cash withdrawal experience with the enhanced security," Ravi Goyal, AGS Transact chairman, said in the article. "With minimum investment, banks can enable this solution for their ATM networks by upgrading their existing software."

AGS Transact manages 70,000 ATMs for banks in India.