Apple Pay and Android Pay to get NFC ATM support, expected to hit US shores this year
Jan 31, 2016 07:01 AM EST
Mobile payment services like Apple Pay and Android Pay may get contactless NFC support via ATM cards sometime this year.
A survey by the Verge has shown that contactless ATMs has been available in countries like Spain or Canada for quite a while, but not in the US. Thanks to mobile payment services like Apple Pay and Android Pay, US banks have begun warming up to the idea of offering contactless ATM to their clients. The Verge was able to confirm that financial institutions like Bank of America, Chase and Wells Fargo are rolling out NFC-equipped ATMs.
Among all the banks mentioned only Chase has been confirmed of having an actual timeline for the installation of their NFC-equipped ATMs.
As they are still setting up the NFC infrastructure, they are asking users for authentication through their mobile banking app. This will give users a seven digit code that allows access to their ATM even without a physical card.
Chase is hoping that before the year ends users will be able accesss the NFC-equipped ATMs similar to accessing credit cards via Apple Pay and Android Pay.
According to Digital Trends, Bank of America and Wells Fargo are also planning to integrate Apple Pay and Android Pay in their ATMs using NFC technology.
Bank of America was not too forthcoming about their plans but there are hints that they are planning to introduce the technology for a number of mobile payment platforms. Betty Riess, Bank of America spokesperson, says that plans are in place to introduce NFC-equipped ATMs by end of February at select locations such as Silicon Valley, San Francisco, Charlotte, New York and Boston. A broader roll-out is also expected by mid-year.
Similar to the Chase process, Bank of America's clients would need to intially set up the feature on their mobile deivice. Once everything is set up, the client can tap their device on the ATM and verify their identity via TOUCH ID or a pass code.
While Wells Fargo has not shared any timeline for their ATM rollout, it has been confirmed by their head of ATMs that the bank is working on tech that allows them to hook digital wallets, leveraging NFC on mobile phones to replace physical cards at the ATM terminal. The bank's initial plan is to focus on Android Pay and gradually introduce support for Apple Pay during the course of the year.
Finally, according to Tech Crunch, cardless transactions via Apple Pay and Android Pay can deter ATM card fraud. Using contactless NFC ATMs can deter the use of card skimmers because it is easier to duplicate an ATM card than it is to clone a smartphone. Services like Apple Pay have very robust encryption systems and can also be set to require a fingerprint scan which is more safe than a 4-digit ATM PIN code.
The convenience and safety of using Apple Pay and Android pay on NFC-equipped ATMs could entice more banks to adopt these methods and make it a global standard one day.