NORTH CANTON, Ohio — The ATM maker Diebold has deployed a machine at Diebold FCU that operates without a card reader or PIN pad.

The ATM relies solely on mobile authentication.

When a pre-registered member scans a QR code at the ATM using a smartphone, the machine authenticated the user through cloud-hosted services by sending a one-time password to the member's smartphone. (The member types the code into the ATM using a virtual keyboard on the machine's touchscreen.)

This technology is designed to eliminate fraud schemes that rely on skimming card data and observing PINs as they are typed.

The ATM will also integrate the Mobile Cash Access wallet application, which allows consumers to pre-stage cash withdrawals on their smartphones. Diebold developed Mobile Cash Access with mobile wallet provider Paydiant. Users receive their ATM receipts through a mobile app rather than on paper.

"Diebold's Millennial-inspired ATM offers a new way to meet the needs of our members," said Dan Gann, president and CEO of $15.7 million Diebold FCU in a statement Thursday. "They're readily downloading the mobile wallet application and adopting the technology. In addition, by offering a branded mobile wallet solution, we're reinforcing our connection to members' retail purchases and reminding them that we're enabling this convenience."

Frank Natoli Jr. the chief innovation officer, at Diebold said while developing the Millennial-inspired ATM, the institution studied the digital and social habits of today's younger generation.

"The research led us to choose mobile devices for both the user interface and the authentication vehicle to ensure seamless connectivity between devices,” Natoli said. "Adding mobile wallet capabilities further capitalizes on the mobile mentality of Millennials."


--Marian Raab contributed to this article.

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