Smartphones could soon replace ATM cards too !!!

A new application allows users to use their phone instead of debit card to withdraw money in ATM.

NCR Corporation, a leader in near field communication technology, access control and other banking and finance related solutions, has released a new application which will allow consumers to initiate cash withdrawals from their banking accounts using mobile devices and then complete those transactions at an ATM by scanning a 2D barcode.

Named as the NCR Mobile Cash Withdrawal, the app will make ATM transactions faster and more secure, by removing cards and PINs from the process at the ATM. The entire transaction, while the consumer is in front of the ATM, can take less than 10 seconds.

Consumers will authenticate through their existing mobile banking application and pre-stage the transaction via an embedded NCR Mobile Cash Withdrawal function. Consumers can use any iOS or Android smart phone at any location and at any time - whether at work, on the metro or while in line at the ATM - and then choose the amount of their transaction.

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Once at their bank's ATM, the consumer will use the embedded functionality to scan the 2D barcode on any participating ATM's home screen, and the pre-staged cash transaction will be authorised and funds dispensed.

The solution requires no additional ATM hardware such as barcode scanners or near field communication (NFC) readers. It can be deployed with just a simple software upgrade, making it an affordable multichannel solution for financial institutions.

Please note that NCR Corporation is not an Indian company but it supplies ATM machines to Indian banks. Hence this solution may be introduced in India too.

"Mobile Cash Withdrawal is a very secure approach to traditional card-based ATM transactions. No consumer data is stored on the device or contained within the on-screen 2D barcode. Rather, scanning the barcode only identifies the location of the ATM and prompts fulfillment of the transaction. In turn, using a mobile device eliminates the threat of ATM skimming devices used by criminals," NCR said in a statement.

The solution includes an integrated electronic receipt that delivers the receipt to the users' mobile app, eliminating the printed paper receipt and includes the ability to store and archive the receipt for later retrieval.