Cardless, cashless and contactless: will this be the new normal?

If you're like me, just hearing the phrase, "the new normal," is like nails on chalkboard.

But as much as I am sick to death of hearing that phrase from every advertiser from car dealers to cosmetic companies, the truth is the "new normal" is going to impact this industry.

This week, London's RBR released a Global ATM Market and Forecasts to 2025 study. What was apparent in the study was that COVID-19 has certainly had an impact, but it has also birthed innovation for the ATM industry.

Cardless ATMs

The study indicated the number of ATMs offering cardless cash withdrawals increased. Why? Welcome to the new normal. The public is looking for contactless technologies as restrictions lift from the pandemic. I think its especially true in areas that have seen a surge in cases once restrictions were lifted. The public is quick to react, having been on lockdown for three months, and if they can resume "normal activities" in a contactless way, it seems that's the way they want it.

The study also showed the number of ATMs providing cardless withdrawals rose by 26% in 2019, and that increase occurred primarily in the U.S. where the number of cardless ATMs has more than tripled.

According to the report, U.S. banks introduced the service to target mobile phone users, and those users pay by mobile for everything from bills to bagels.

But even if you exclude the U.S., the number of global cardless ATM cash withdrawals increased by 10%.

The reason, the report shows, is both a combination of customer convenience and security.

But still, the idea of cardless cash withdrawals is an innovative one. How does it work? Is it effective? There are a variety of methods which allow cardholders to make cash withdrawals at the ATM without inserting a payment card.

NFC and QR readers

ATMs equipped with NFC and QR code readers are gaining popularity. There are other ATMS that provide a one-time PIN that users insert or the ATM displays an on-screen QR code and customers just use their phones to scan the code and get cash.

RBR's study revealed that the number of ATMs equipped with NFC readers increased by 83% in 2019, but joining the U.S. in exploring and deploying this technology is Poland and Ukraine, where ATMs with NFC readers are showing strong growth.

In Canada, two major banks just introduced for the first time ATMs with NFC readers. The banks have not yet offered cardless cash withdrawals, but it seems the goal is to increase the use of contactless technology at the ATMs in the future.

Although ATMS with NFC readers appear to be more common, ATMs with QR codes, according to RBR, rose in 2019, but was largely driven by China, Thailand and Taiwan.

In Thailand, 43% of ATMs are equipped with QR code readers, and only 4% of ATMs have NFC readers. There is every indication the QR code trend will continue to grow here, given that the Bank of Thailand encourages the deployment of QR code readers as part of its strategy toward cashless payments.

Biometric authentication

There are a number of ways to make cash withdrawals using biometric identification. This publication has reported on a number of new biometric authentication methods, such as palm screening and face recognition.

In Spain, Caixabank has increased its rollout of biometric ATMs which uses facial recognition for withdrawals. In India, AGS Transact, which manages approximately 72,000 ATMs on behalf of the banks, recently developed and tested a 'touchless' ATM solution that uses on-screen QR codes to allow the customer to withdraw cash without ever touching the machine.

As abnormal as these past few months have been for all of us, the new normal appears to be flush with innovation.

Rowan Berridge, who led RBR's research said regarding the study, "As concerns about COVID-19 continue to run high, cardless cash withdrawals are garnering increasing interest. ATM operators are finding ways to deliver cash and other vital services whilst mitigating risk. Even after the current pandemic, I expect to see the industry continue to innovate in this area".

It bears watching to see how our everyday processes and lives are changed by the new normal, but what about you and your company? Keep me posted on how the new normal is affecting your segment of the industry.