December 12, 2015
San Francisco-based Wells Fargo announced its plan for a technology that will let customers start a transaction, such as withdrawing cash, on their phone before heading to an ATM. Customers will complete their transaction at the ATM, where they will enter their PIN and a one-time code generated by the smartphone app.
Wells Fargo said its virtual card service will be available in the late third quarter or early fourth quarter of 2016. Wells Fargo customers will still have the option of using plastic cards at the ATMs.
Really what we’re trying to do is provide our customers choice, said Jonathan Velline, Head of Wells Fargo’s ATM and branch strategy.
Recently, HalCash North America announced the launch of Pin4, a mobile cardless cash ATM withdrawal solution that provides businesses with a radically better way to engage with their customers through real-time delivery of cash without the need for a debit/credit card or bank account. Pin4 is helping innovate the promotional world by offering companies a new reward mechanism for rebates, promotions, rewards fulfillment and P2P transfers.
Citigroup Inc. is testing new technology with automated-teller-machine maker Diebold Inc. that would allow customers to withdraw money with an eyeball scan or a code on a smartphone instead of a card swipe.
Other big banks including JPMorgan Chase & Co. and Bank of America Corp, recently started internally testing their own cardless ATM technologies.
A Bank of America spokeswoman said the bank has tested cardless ATMs internally and will begin a customer pilot of them during the first half of next year. Similar features have already been rolled out at the ATMs of smaller banks, such as BMO Harris Bank, a Chicago-based unit of Canada’s Bank of Montreal, and Rosemont, an Illinois-based unit of Wintrust Financial Corp.
Certain remedies have already been implemented to avoid ATM fraud. These include real-time SMS alerts, routine security checks for skimmers, on-premise physical security, etc. But we believe that unless radical transformation has been brought to the machines themselves, the fraud certainly will not go down in number. It is yet to be seen whether the shift to mobile-based cardless cash withdrawal from ATM machines over the next year would have a substantial effect on fraud.
About Wells Fargo:
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.8 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage and consumer and commercial finance through 8,700 locations, 12,800 ATMs, the Internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy. With approximately 265,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 30 on Fortune’s 2015 rankings of America’s largest corporations.