Being able to use your smartphone for financial transactions is something that is beginning to become more commonplace. Apps are available that let you transfer cash straight from your bank account to a friend, using just their mobile number, and NFC promises to let you make contactless payments in store.
Now a new app is set to be launched, that will let you directly access your cash from a nearby ATM, without having to use your debit card.
The app was officially unveiled this week at the Money2020 Conference in Las Vegas. Three banks in the US have been piloting the app over the last few months, and now plan to rollout the service to all their ATM machines by the end of 2014.
The way the app works is very simple. From up to 24 hours before you need the cash, to just a few seconds before making the transaction, you just load the app on your device and enter the amount needed. This then generates a QR Code on your device, which you show to the ATM screen. This reads the code, and dispenses your cash.
This method of withdrawing cash is faster than the traditional method, where you insert the card, enter your pin, select the amount and wait for your cash. The standard method takes from 40 seconds onwards, whilst using the app you can get to your cash in less than 10 seconds. It is also safer, as there is no pin to shield when you are at the cashpoint because all the info is held within the QR Code. And, as you are not entering a card in to the machine, it removes the problem of skimming, where a card reader is placed over the card slot to electronically read the info stored on the magnetic strip. The smartphone app is protected by a pin code, preventing anyone who gets their hands on your phone from withdrawing all your cash, too.
The FIS, who are backing the rollout of the app, suggest that withdrawing cash is just one possibility for the service. If retailers can be persuaded to upgrade their equipment, the generated QR Code can be used to make payments at petrol station, supermarkets and restaurants.
Banks are working hard to make the mobile an integral part of everyday financial transactions. What is needed now is a uniform approach that works, which retailers can buy into, making it possible for consumers to start using these services.
Source
From www.rightmobilephone.co.uk
