Why contactless ATMs will win

By : Scott Millar

October 09, 2014 11:31 PM

Why should we care about a contactless ATM? Surely no one really minds entering their card into a machine?


Maybe, but there are some key advantages to a contactless ATM.


One, it’s faster, which cuts waiting times and makes the customer experience better. For time-starved consumers, this matters. “A contactless dispense transaction is approximately 25 per cent faster than a traditional withdrawal requiring insertion of the card into the card reader,” according to Ruth Fornell, vice president of Global Professional Services at NCR.


Time may not be the big problem if customers just want some cash, but if they want more complex services, such as paying-in, bill payments or any of the other myriad functions an ATM can do now, the time factor is more important.


Contactless also works with consumer expectations. As we keep seeing in banking, what’s happens first in the retail space often drives what goes on here. And contactless is a great example. Meeting the expectations of the consumer is vital for retaining and attracting customers.


Contactless payments are booming worldwide - they’re growing faster than just about any other segment. Powered by EMV chip-and-PIN cards in the main, they are hugely popular, incredibly convenient and, with biometrics, only just tapping on the door of potential.


What do we mean? At present contactless technology is limited - you can only use "tap-and-go" cards, as they are called, for small transactions as there is generally no additional authentication. The security for contactless is really all about fraud detection.


But with biometric technology - facial recognition, fingerprint readers and so on - the potential is limitless because you can verify and authenticate a transaction even more confidently than a PIN.


And it’s thanks to biometrics that it’s fair to say contactless ATMs are about to take off.


With biometrics verifying the customer is who they say they are, contactless ATMs will be able to fulfil an amazing array of functions.

Scott Millar

Global Solutions Marketing Manager

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Based out of NCR’s R&D Centre in Dundee, UK, Scott Millar is responsible for establishing the marketing strategies and enhancing the strength and market share of the NCR Financial Hardware Portfolio. Here, Scott shares his insights.