Payment company Mastercard has teamed up with ATM manufacturer Diebold Nixdorf to trial two new methods of withdrawing cash using a mobile phone.
With Cash Pick-Up, a text message is sent to a recipient’s phone providing them with an order number, four-digit PIN and directions to the nearest branded ATM. The cash is provided as soon as the codes are correctly entered into the machine.
Uses for this service include: replacing lost or stolen wallets with instant cash; providing emergency relief to those in need; sending funds or payments to people without a bank account; or offering faster payments on rebates and rewards.
The second service, Cardless ATM, allows Mastercard cardholders to take cash out from the nearest participating ATM, initiated from their mobile banking app.
Consumers open their bank’s app on their smartphone, and use the app to find nearby ATMs, choose the amount they want to withdraw and see the associated fees.
Once at the ATM, they quickly snap or tap, often by scanning a QR code, authenticate using optional biometrics on their device, and take the dispensed cash.
Consumers’ sensitive data remains secure as the majority of the transaction is handled through the app and the Mastercard cloud. Personal identity can be established by biometrics on the consumer’s device and tokenised card information is sent over the Mastercard network, the company explained.
“By bringing the convenience of digital transactions to accessing and depositing cash, consumers can easily get cash or send cash to others when they need it most, and banks can solidify their consumer relationships,” Diebold Nixdorf said.
The two companies demonstrated the new services at last week’s Money 20/20 Europe in Amsterdam.