Wells Fargo announced today that they have enabled its mobile banking app users to gain card-free access to all of its 13,000 ATMs in the U.S. through its app by entering a one-time 8-digit code they receive once they click on the card-free ATM access in their mobile app and then enter their debit or ATM card PIN to access all ATM transactions, all without needing their physical card to do so. They also expect to launch cardless ATM access using an NFC-enabled smartphone , though no timeframe was set. Customers will be able to access cardless ATM transactions by signing into a leading mobile wallet such as the Wells Fargo Wallet, Apple Pay, Android Pay or Samsung Pay by holding the phone near an NFC-enabled ATM terminal. Once authenticated, the customer will input their debit or ATM card PIN and complete their transaction. Wells Fargo is said to have enabled NFC on 5,000 of its 13,000 U.S. ATMs.
“At Wells Fargo, we believe the future is cardless, and the launch of One-Time Access Code provides our 20 million mobile banking customers another convenient way to manage money,” said Brett Pitts, head of digital for Virtual Channels. “This new ATM feature exemplifies Wells Fargo’s commitment to innovation.”
Cardless cash access is not a new concept, as City National Bank launched a similar service in 2003 and now at least two dozen banks, including BMO Harris, Bank of America, Chase will offer this service on at least some of their ATMs by the end of Q2 2016. In light of fraudsters’ use of skimming devices inserted in ATMs to copy card credentials, cash access using mobile phone to scan a QR code at an ATM can be a more secure way to get cash than inserting a card. Some banks including Bank of America offer mobile cash access with a digital mobile wallet such as Apple Pay or Android Pay, a service now offered by FIS.
As reported in Mercator Advisory Group’s latest CustomerMonitor Survey Series Insight report, ATM and Self-Service Banking: Key to Engagement, based on an online survey of 3,000 U.S. adults fielded in November 2016 who have at least one account at a financial institution, interest in mobile cash access is very strong and nearly 1 in 3 respondents would try it, especially young adults, high income earners and more than half of frequent ATM users. Yet, despite the availability of the service, hardly any consumers have tried it. Still only a small fraction of the 436,000 ATMs installed in the U.S. offer mobile cash access. Nevertheless, its convenience and improved security will make it appealing to mobile app users.
For more information on the Mercator Advisory GroupCustomerMonitor Survey Series reports, please go to www.mercatoradvisorygroup.com/PrimaryData.
Overview by Karen Augustine, Manager, Primary Data Services at Mercator Advisory Group
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