Central Massachusetts-based Avidia Bank is the latest to join a list of slowly, but steadily growing financial institutions providing cardless ATM service powered by FIS.
With the launch of the service, the bank's 54 customers would be able to withdraw cash at all Avidia ATMs by scanning a QR code generated on their FIS-powered mobile banking app, according to a press release.
FIS’ Cardless Cash technology, which generates a QR code for each cash withdrawal, has reportedly been noted as safer than other mobile cash access modes that rely on utilizing temporary authorization codes. The technology instead relies on using the security measures within the banking app authentication process, registration of FIS’ mobile wallet technology installed on a user’s smartphone and a secure cloud for processing transactions.
As obscure as the idea might seem, the process of using cardless ATMs is simple. Much like ordering food on a mobile app, the customer “preorders” cash on the mobile app. Upon selecting the transaction type, the FIS-enabled app prompts the user to select the account of choice and the amount they would like to withdraw.
Once that is done, the customer just has to walk up to a nearby cardless cash ATM and select “cardless cash access” on the ATM display. This leads the ATM machine to request the user to scan the QR code, which was generated when requesting cardless cash on the app. Once the user scans it at the ATM, the cash gets dispensed and a digital receipt is generated on the user’s phone.
Avidia Bank is now among a select few other banks, like Wintrust and BMO Harris, who are currently employing the new technology. It was only in 2013 when FIS began testing the cardless cash access service at Wintrust ATMs in Chicago.