20 October 2014

Diebold takes its cue from smartphones and tablets for next gen ATMs

09 January 2013  |  8919 views  |  3 tablet computer 4

Diebold is hoping to bridge the gap between its 20th century ATM technology and the modern era's mobile obsession with a new "millennial-inspired" machine that lets users make cardless transactions with their handsets.

At this week's Consumer Electronics Show (CES) in Las Vegas the firm is showing off its new "conceptual ATM interface", which borrows the touchscreen, navigation and controls familiar to smartphone owners.

To complete a cardless withdrawal, pre-registered bank customers scan a QR code on the ATM using their phones. When the devices sync via the cloud, a transaction screen appears on the handset where the customer selects the withdrawal amount. The cloud server then sends a one-time code to the phone, which the customer enters on the ATM screen to authenticate the transaction and receive cash.

Diebold argues that the system reduces consumer security risks related to lost or stolen cards, as well as the opportunity for skimming, while privacy is boosted because details are entered on the phone rather than ATM screen. The one-time authentication code expires immediately after completing a transaction.

The firm is also demoing a person-to-person payments feature at CES which lets customers set up pre-staged transactions that authorise access to cash to a third party. The sender enters the payment amount and recipient's contact information, which can be selected directly from his or her contact list, through their phone. The recipient then receives a one-time code he or she can use at an ATM or branch to receive money.

By using cloud-based services, the features do not require onboard computers, which means reduced power requirements while hardware costs are cut because no card readers or receipt printers are needed. Transaction receipts are delivered via text or e-mail.

Diebold says it plans to launch pilot testing of the millennial-inspired ATM with unnamed financial institutions later in the year.

Frank Natoli, chief innovation officer, Diebold, says: Mobile devices are driving user experience expectations in all facets of commerce. It was only a matter of time before the familiar multi-touch interface style made its way to the ATM. With the burgeoning buying power of the Millennial generation, Diebold envisions this technology will further influence user experiences at the ATM."

Comments: (3)

A Finextra member | 09 January, 2013, 07:16

It's good to finally see some real innovation in the ATM space!

The use of one-time codes to replace static 'secret' PINs and possibly even one-time customer identifiers to replace static 'secret' PANs is one of the best ways of securing consumer transactions moving forward.

It's good to see some of the secure features that are already used by many of the mobile payment providers slowly making their way into the more established segments of the payments industry.

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Jan-Olof Brunila - Swedbank - Stockholm | 09 January, 2013, 09:00

Dear Oscar - in my mind this mobile phone atm service is still based on static pin or password but the customer does the pin on the mobile phone to open up the application and possibly to approve a withdrawal instead of keying it on a secure pin pad. There is then the risk that a stolen mobile phone can be used to empty my current account on top of making expensive calls on my subscription account if the cash withdrawal application is not protected well enough. Since smart phones are reasonably theft prone this could be a serious new threat.

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Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 11 January, 2013, 16:24

I remember NCR doing something like this last year. As a security boosting measure, this is a solution seeking a problem. While it plugs one arguable vulnerability, it introduces other concerns, as @Jan-OlafB points out. However, if the recipient doesn't need to have an account in the same bank as the sender, this is a highly convenient realtime P2P payment method.

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