Card-less Cash withdrawal cash transactions: the new prospect of ATMs?

Do not worry there’s a good news for you!

We all have days where we don’t remember important things like keys or wallets. Recently I had one of those days. I had run out of the house in a rush and, at lunch, I realized I had forgotten my wallet.

Sometimes we run out of money in our wallet and also don’t have Debit / Credit Cards with us. Then it will not be possible to withdraw money from ATM. But now, you don’t have to worry, as banks has launched Card-less Cash withdrawal ATM service due to which you will be able to withdraw money and that too without using debit or credit card

Traditionally the Debit / Credit Cards security is based on two-way authentication process which has a card and a pin number, but it has now been made Card-less Cash withdrawal and painless. Now these days Banks are introducing a very different type of ATM — one that doesn’t require users to swipe or insert their debit cards. Instead, users can withdraw the cash they need using smartphone technology.

This is not the first time wherein banks have embraced the technology of Card-less Cash withdrawal from the ATM. Many Indian banks have already introduced the Card-less Cash withdrawal service which allowed its customers to engage in monetary transactions through the ATM without the need of possessing an account. The service enables bank’s customer to transfer money to any person with the help of receiver’s mobile number and a sender’s code through text message. The person who received the money can withdraw from ATM by providing details like sender’s code, mobile number, amount transferred and SMS pin to the receiver through SMS within 14 days.

Understanding Card-less cash withdrawal technology

With technology penetrating every walk of life, banks are trying to improve customer services with new modes of monetary transactions that are convenient and secure. Now, you don’t have to carry a Debit Card or hold a bank account to withdraw money. Card-less Cash withdrawal are making their way into the system to make our lives easier. This method can be a game changer. So, how does it work? The process differs slightly from bank to bank. However, in general, you would need to use the bank’s mobile banking app. Once you log in to the app, you will need to initiate the transaction and provide the amount you wish to withdraw. A temporary PIN will be generated which you will enter at the ATM after choosing the option for Card-less Cash withdrawal. One of the major advantages of using a Card-less Cash withdrawal service is that it eliminates the need to carry a Debit or Credit Card. Hence, it’s safe and reduces the risk of fraud mainly skimming and cloning of your cards. Have you tried it yet?

Challenges:

While Card-less Cash withdrawal ATMs are considered to be safer than using your physical card, the security of this method is still a bit of a mixed bag. If you’re worried about ATM skimmers or theft, you may be relieved to not have to risk it with your physical card. (You do, however, need to keep tabs on your phone if you’re going out wallet-free.)

More limitations come regarding the amount allowed to withdraw, a number of transactions, the time required to enter a verification code, or availability of the Card-less Cash withdrawal ATMs nearby.

There are few challenges that we must take care of before using the Card-less Cash withdrawal cash withdrawal which are stated as below –

1. Cash withdrawal limit – Customer can withdraw a specific amount within the min and max range as per the bank regulatory requirements
2. Customer Type – As of now, banks offer this service to their savings bank customer
3. Charges- For every card-less cash withdrawal transaction, bank will charge the customer a specific amount of fee which varies from bank to bank.
4. Card-less Cash withdrawal ATM – According to research, 78% of consumers would rather use a Card-less Cash withdrawal ATM solution than carry a physical card. Therefore, installing those machines is just a reasonable answer to public demand. Their main prerogative is convenience.

Many mobile apps offer to locate the nearest Card-less Cash withdrawal ATM of the banking network which adds up to the convenience factor.

Advantages:

Yet why would any bank invest money to upgrade ATMs for Card-less Cash withdrawal withdrawals?

No Debit card required – Card-less Cash withdrawal is here!? We are truly living amidst the golden era in banking. Digital Transformation has revolutionized the way banking transactions were carried out traditionally. It’s drastically changing every single day!

Following are some of the few benefits of this Card-less Cash withdrawal technology

1. Faster Transactions – Card-less Cash withdrawals take about 15 seconds from start to finish. This is in sharp contrast to traditional card-based transactions that can take anywhere from 45 seconds to several minutes. By Setting up the transaction in advance we can reduce our time spent in ATM.
2. Improvised safety & Security – Debit card information isn’t stored directly on the smartphone. Even if a thief gets his hands on a user’s device, he doesn’t necessarily have access to that user’s banking data. We don’t have to worry about losing a card or forgetting PIN.In addition, cards can occasionally get stuck. Unlucky users may have to wait an entire weekend before getting in touch with their banks to resolve the issue.

3. P2P payments: Another compelling benefit of Card-less Cash withdrawal ATM transactions – specifically cash-by-code transactions – is the opportunity for customers to initiate P2P payments. Customers can set up the transaction using their banking app, and send the code to friends, family, etc. for them to withdraw the funds from an ATM.
4. Convenience of usage: Now we need not carry Debit or Credit card for withdrawal of cash. Card-less Cash withdrawal ATMs join a long list of mobile payment options that have already taken the retail and restaurant industries by storm. The problem of the account being hacked or any fraud from card loss or theft will have a full stop.

Conclusion:

Mobile Era and Card-less “Mobile device everywhere and every time”

The banking industry is on the edge of another fintech revolution. Card-less cash withdrawal ATMs are about to go mainstream and can create a major shift that will have a big impact on the banking industry.