Mo­bile Meets In­de­pen­dent ATMS

As more bank-owned ATMS al­low con­sumers to in­ter­act with them via smart­phone, in­de­pen­dent op­er­a­tors must con­sider their op­tions for mo­bile tech­nol­ogy.


As ATMS on large bank net­works in­creas­ingly use mo­bile phones for ac­count ac­cess — a trend driven in part by mo­bile bank­ing — non-bank ATM op­er­a­tors are work­ing to en­able the same fea­tures to at­tract mo­bile-savvy cash users.

Gen­mega, a Hay­wood, Calif.-based ATM maker that has about 150,000 ma­chines de­ployed glob­ally, is cur­rently up­grad­ing its ATMS to in­clude mo­bile tech­nol­ogy and NFC read­ers, and new ma­chines that come out in 2018 will be equipped with NFC.

“That is where we see the ATM tech go­ing,” said Wes Dunn, se­nior vice pres­i­dent of sales for Gen­mega. “We’re do­ing NFC in Asia al­ready, so it’s not an en­tirely new tech­nol­ogy for us.”

As cash use de­clines, cash ma­chines have been adding dig­i­tal fea­tures to stay rel­e­vant.

The pace of bank adop­tion of dig­i­tal ATMS is ac­cel­er­at­ing, as Bank of Amer­ica has up­graded about 8,000 ATMS in a year to ac­com­mo­date mo­bile ac­cess; Wells Fargo has mi­grated a sub­stan­tial por­tion of its ATM fleet; and Bar­clays is up­dat­ing its ma­chines.

In re­cent re­search on ATMS, Mer­ca­tor Ad­vi­sory Group found the grow­ing pop­u­lar­ity of mo­bile bank­ing can be a cat­a­lyst for mo­bile ATM ac­cess, al­low­ing the banks to re­cap­ture the cash dis­tri­bu­tion that’s lost through cash-back fea­tures at the point of sale.

For the broader ATM in­dus­try, this will cre­ate a gen­eral ap­petite for mo­bile ATMS to serve per­sis­tent cash needs. Mer­ca­tor found 21% of con­sumers spend more than $20 in cash per week, while an­other 21% spend more than $50 and 18% spend more than $100.

These fig­ures are mostly steady year over year, sug­gest­ing long-term de­mand for both cash and a good mo­bile-driven user ex­pe­ri­ence at ATMS.

“ATM own­ers are look­ing to add new fea­tures to their de­vices,” said Zil Barei­sis, a se­nior an­a­lyst at Ce­lent, not­ing the Bank of Amer­ica up­grade will al­low con­sumers to ac­cess ATM ser­vices tap­ping smart­phones equipped with Ap­ple Pay, An­droid Pay and other wal­lets.

“This is also one way to en­able card­less cash with­drawals, a func­tion­al­ity that’s in­creas­ingly get­ting more at­ten­tion for the is­suers,” Barei­sis said.

For ATM providers, that has been con­sol­i­da­tion, such as Diebold’s ac­qui­si­tion of Win­cor Nix­dorf.

Gen­mega, which serves mostly in­de­pen­dent ATM de­ploy­ers and op­er­ates in a mar­ket with Tri­ton, Hyosung and Han­tle, is con­sid­er­ing how con­sumer use of mo­bile tech­nol­ogy melds with ATMS to serve its ma­chines, which as in­de­pen­dent ATMS are mostly lo­cated in con­ve­nience stores, bars, restau­rants and su­per­mar­kets.

Gen­mega found that sim­i­lar to shop­ping, peo­ple are cur­rently us­ing mo­bile apps more than NFC wal­lets.

“We’re sup­port­ing the mo­bile ATM apps that are out there now, like Pay­di­ant,” Dunn said.

“These are not nec­es­sar­ily peo­ple us­ing ATM read­ers, but they are us­ing mo­bile apps,” Dunn added.

Gen­mega is also up­grad­ing tech­nol­ogy for its self-ser­vice ma­chines, which are also at the fore of chip card and mo­bile tech­nol­ogy sup­port.

It has built a web­site for clients that use the com­pany’s kiosks, such as Club Con­trol Sys­tems, which au­to­mates club ac­cess and Ge­n­e­sis Coin, a bit­coin ATM. The site is de­signed to up­date as new mo­bile fea­tures and value-adds be­come avail­able for kiosks.

“Au­to­mated kiosks are be­com­ing more preva­lent, at or­der or check­out,” Dunn said, adding there’s not a lot of in­for­ma­tion avail­able on new tech­nol­ogy for self-ser­vice kiosks.

“There may be some­one who wants to up­date to help wait­resses in clubs get their or­der faster and serve faster. This is a way for them to be aware of the kind of tech­nol­ogy that’s out there,” Dunn said.

Cardtron­ics has also an­nounced it will add FIS Card­less Cash tech­nol­ogy to its en­tire fleet of ATMS over the next two years.

A re­cent ACI World­wide sur­vey of 8,000 U.S. con­sumers sug­gested that one in four bank cus­tomers are open to bet­ter and more se­cure au­then­ti­ca­tion meth­ods, but 40% of con­sumers haven’t con­sid­ered chang­ing their use of the tra­di­tional ATM.

Patchy mer­chant ac­cep­tance of third­party mo­bile wal­lets like Ap­ple Pay, An­droid Pay and Sam­sung Pay has con­trib­uted to an in­con­sis­tent con­sumer ex­pe­ri­ence with mo­bile wal­lets, and that’s one of the fac­tors slow­ing their widespread adop­tion, ACI con­tends.

FIS is op­ti­mistic about its Card­less Cash catch­ing on faster than NFC wal­lets.

“We see more than 55% of con­sumers retry­ing, or reusing Card­less Cash within the first 90 days of us­ing it,” said Doug Brown, FIS’ se­nior vice pres­i­dent and gen­eral man­ager of mo­bile.

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