Diebold introduces ATM-based card onboarding for mobile wallets

Diebold introduces ATM-based card onboarding for mobile wallets

In its latest effort to make cash machines relevant in the digital age, Diebold has unveiled a system that sees bank customers add their cards to mobile wallets through the ATM interface.

Most mobile wallets, such as Apple Pay, let customers add cards simply by entering the details manually or taking a photo of the plastic.

Diebold argues that its alternative - developed with HCE-based NFC mobile payments specialist SimplyTapp - takes advantage of the "inherently secure architecture" of ATM networks for the card onboarding.

To enrol in their bank's mobile wallet, a customer must insert their card at the ATM and enter their PIN. On the machine's screen they are given the option to sign up to the wallet and if they choose to, are asked to enter their phone number. They then receive a text with a link to download the app.

Automatically, the customer's card data is encrypted in the form of tokens and transferred from the ATM to the card issuer's virtual cloud via SimplyTapp's HCE technology. The user can then start making contactless mobile payments.

Diebold says that its patent-pending process is already being piloted by America First Credit Union and Banco Popular de Puerto Rico. The ATM giant is hoping that by requiring a PIN and for the card to be present, its system will help win over the public, which has consistently cited security as the major obstacle to mobile payments takeup.

"Consumers these days carry cash, cards and a phone; how can they securely use these together? We brought our knowledge of authentication, security and ATM transaction processing to provide a better, more secure consumer experience," says Alan Kerr, EVP, software, Diebold.

"From hardware and software to services and security, we have the knowledge and experience to orchestrate the most advanced experiences the industry has ever seen: secure, convenient card onboarding to a mobile payments app, followed by instant NFC access at both point-of-sale and the ATM."

Comments: (3)

A Finextra member
A Finextra member 21 October, 2015, 18:41Be the first to give this comment the thumbs up 0 likes

Is the consumer worried about the security of card onboarding to the mobile app for payments? Or, about mobile payment security? Are they solving a problem that is a problem? I don't know.  I will give them credit for doing something innovative with the ATM machine. Bravo.

Hitesh Thakkar
Hitesh Thakkar - SME - Fintech startups (APAC and Africa) - India 21 October, 2015, 19:25Be the first to give this comment the thumbs up 0 likes

Points to be given for enabling ATM to migrate (or sign up) to mobile wallet for NFC + HCE features providing one more layer of security for customer's card. 

Ofcourse, with prepaid cards it can be further used for Wages payout which can be further transfer to the mobile.

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 22 October, 2015, 11:24Be the first to give this comment the thumbs up 0 likes

This is a great move to "protect your existing investment in ATMs", "get more bang for your existing ATM buck" and all that. But I'm not sure how it assuages fear of mobile payments, especially when it only addresses the provisioning phase of it. This solution can give me the assurance that only *I* can add *my* card to *my* mobile wallet issued by a user of this solution but how does that help me when there are so many other mobile wallets around that don't use this solution and this solution can't, for example, prevent someone else from provisioning my card on *their* Apple Pay, which is the source of Apple Pay Provisioning Fraud?