This New ATM Won’t Take Your Card

Mobile banking has gone from “what’s that?” — to the next big thing — to THE thing in just a few short years. Case in point: there’s a new automated teller machine (ATM) coming on the market that has no card reader inside.

ATM maker Diebold said that its latest creation is an ATM that combines with a mobile wallet solution to create an ATM experience that relies solely on mobile authentication, and integrates banking channels as never before.

The new machines are being rolled out at Diebold Federal Credit Union (DFCU). With the new technology, DFCU members can now make retail purchases or complete self-service transactions without ever having to produce a debit or credit card.

DFCU members use their smartphones to scan a unique QR code – which the machine can read. The ATM uses a cloud-based service to authenticate the user, and allow the transaction to proceed. There is no card involved, and no PIN.

Diebold said that the new ATM is actually more secure than traditional ones, since it eliminates the threat of someone using card skimming technology and reading your PIN over your shoulder while you make a transaction.

This new technology is being touted as the perfect solution for the Millennial generation, whose members have been among the biggest adopters of mobile banking technology. But of course Diebold – and the industry overall – expect that consumers of all ages will embrace this new technology.

The US is rapidly going cashless, after all. With over 85% of transactions now being conducted without using cash, how much longer will we even need traditional ATMs?