Next-Generation ATM Goes Cardless, Paperless

Diebold unveils millennial-inspired ATM integrates during Consumer Electronics Show.

January 20, 2013

Diebold has developed the first ATM that includes integration with mobile devices via the cloud, allowing consumers to complete secure, cardless transactions.

It also features a new user interface that enables touch gestures, such as flick and drag, commonly used with smart phones and tablet devices. Diebold, a CUNA Strategic Services alliance provider, demonstrated its new ATM at the 2013 International Consumer Electronics Show in Las Vegas.

Influenced by the expectations of the millennial generation and the group’s familiarity with mobile device interfaces, Diebold's conceptual ATM interface looks and acts like today's mobile devices, with similar navigation and controls.

The ATM also is paperless, delivering transaction receipts via text message or email, based on users’ preferences.

“Mobile devices are driving user experience expectations in all facets of commerce,” says Frank Natoli Jr., Diebold’s vice president/chief innovation officer. “It was only a matter of time before the familiar multi-touch interface style made its way to the ATM. With the burgeoning buying power of the millennial generation, Diebold envisions this technology will further influence user experiences at the ATM.”

During the Consumer Electronics Show, Diebold demonstrated two distinct transactions with the new ATM: Cardless withdrawal and a pre-staged, third-party money transfer.

For both transactions, a user integrates his or her mobile device with the ATM by scanning a quick response (QR) code on the ATM’s screen. Doing so syncs the device via a cloud-based server and authenticates the user without requiring an ATM card.

To complete a cardless withdrawal, a preregistered customer scans the ATM’s QR code using a smartphone. When the devices sync via the cloud, a transaction screen appears on the smartphone where the customer selects the withdrawal amount.

The cloud server then sends a one-time code to the smartphone, which the customer enters on the ATM screen to authenticate the transaction and receive cash.

With smartphones used as authentication devices, cardless transactions reduce consumer security risks related to lost or stolen cards, as well as the opportunity for skimming. Privacy is enhanced when users input transaction details on the smartphone screen rather than the ATM screen. In addition, the one-time authentication code expires immediately after completing a transaction.

The second transaction presented a unique option for completing person-to-person payments. A customer can set up a pre-staged transaction that authorizes access to cash to a third party.

The customer inputs the payment amount and recipient’s contact information, which can be selected directly from his or her contact list. The recipient then receives a one-time code to be used at an ATM or branch to receive money.

Because the ATMs use cloud-based services, they don’t require onboard computers, resulting in reduced power requirements. Without card readers and receipt printers, the terminals use less hardware, which means less use of raw materials to produce those devices.

Also, there’s no paper waste because there are no paper receipts.

Diebold plans to launch pilot testing of its millennial-inspired ATM with financial institutions later this year.