The future of money: Cardless ATM

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The future of money: Cardless ATM

With the birth of the ATM and ATM cards, banks created a stress-free life for everyone.

This invention meant easy withdrawals, more cashless transactions, fewer trips to the bank, and lots more. While we were still trying to enjoy that invention. We got a better innovation – cardless ATMs!

This has got to be the mother of financial innovations! For lots of people, cardless ATMs are a foreign concept. In this article, we’ll give you a complete “180” information on all you need to know about cardless ATMs.

What are cardless ATMs?

Simply put, cardless ATMs are machines that allow you to perform financial transactions without using a physical card.

So, instead of inserting or swiping your card into an ATM, the cardless ATM uses various techniques to process transactions.

Read: Future of Online Banking: What Can We Expect in The Next 10 Years

How does a Cardless ATM work?

There are different forms of technology used by cardless ATMs. They include:

  • Near-Field Communication (NFC): This operates nearby. You hold up your mobile device close to a receiver, through a radio frequency data is transmitted between both devices. So at ATMs that use NFC all you need to do is open your wallet app or mobile banking app, hold up your phone. The ATM receiver verifies your details and you are good to go!
  • Quick Response (QR) Codes: QR codes are more sophisticated than bar codes, they contain more information than barcodes.

ATMs with QR code-enabled technology will generate a QR code, then you open your mobile app and scan the code. Once verified, you can proceed with your transaction.



  •  Verification Codes: These use verification codes, they serve as two-factor authentication to give extra security for online transactions. This form of ATM requires more use of your mobile app.

To use this kind of ATM open your mobile app, log into the app, select your transaction type. Your app will generate a unique, OTP code, this is what you would input into the ATM and your pin, then you proceed with your transaction. Note that the code expires after your transaction or after 30 minutes.

Read: 5 Top Trends Shaping the Future of Payments

  • Biometric Verification: Biometric enabled ATMs make use of physical attributes like fingerprints, faces, eyes or palm prints.

If your bank ATM uses biometrics, all you have to do is to submit the required biometrics and scan it into their system. So, when you visit the ATM, scan the body part you already registered in their system. Once the machine confirms your identity, you can proceed with your transaction.

If you already use facial recognition and NFC card you are not new to the field of cardless ATMs. What are the pros of using a cardless ATM?

Pros of using a cardless ATM

Apart from the obvious advantage of being able to carry out a transaction even if you have forgotten your card, other advantages include:

  • Simple to use Technology: With the onset of cardless ATMs, our phones are serving as wallets. Additionally, you don’t have to memorise account details or pins, your use of biometrics or codes just takes care of that.
  • Unrestricted account access: If you wish to go on a trip and you want to travel light, you can travel without your cards and still have access to your multiple accounts using your phone and any of the cardless ATM technologies.
  • Toss your wallet: If you are taking a walk or jogging and you decide to get some money, with your phone you can always withdraw even if you don’t have your wallet.
  • Security: Cardless ATMs cannot be hijacked by skimmers as there are no physical cards inserted into the ATM. And the use of two-factor authentication and one time codes it’ll be difficult for information to get stolen.
  • Germ-free: With the onset of the Covid-19 pandemic, the cardless ATM means you would not have to come in contact with unsafe surfaces, although it doesn’t take away completely the need to touch the ATM, it reduces contact with it.


Cons of cardless ATMs

Cardless ATMs are not problem-free, some of the cons in using them are:

  • Accessibility: Cardless ATMs aren’t readily available everywhere, so you might not have access to it in your region.
  • Compatibility: Your phone, is your key to unlocking the cardless ATM technology. So, your phone has to be compatible with the device to enable you to use it.
  • Security: Well, true banks have created methods to keep security tight, scammers have also evolved a means to steal, they might steal your identity, hack your phone to access your information. You must keep your devices safe and secure your bank apps.

Greatness doesn’t just happen, it is created and nurtured. The birth of cardless ATMs is a great feat, because “No wallet equals No worries”!.

Guaranteed opening of a business bank account for any type of business, and from any country.

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