NORTH CANTON, Ohio – Diebold is rolling out the first ATM that includes integration with mobile devices via the cloud, allowing cardless transactions.

The cardless machines also feature a new user interface that enables touchscreen gestures, such as flick and drag, commonly used with smartphones and tablet devices.

The new Diebold ATM interface looks and acts like today's mobile devices, with similar navigation and controls. The ATM is also paperless, delivering transaction receipts via text message or email, based on users' preferences.

"Mobile devices are driving user experience expectations in all facets of commerce. It was only a matter of time before the familiar multi-touch interface style made its way to the ATM," said Frank Natoli Jr., executive vice president and chief innovation officer for Diebold.

To complete a cardless cash withdrawal, a preregistered credit union or bank customer scans the ATM's QR code using his smartphone. When the devices sync via the cloud, a transaction screen appears on the smartphone where the customer selects the withdrawal amount. The cloud server then sends a one-time code to the smartphone, which the customer enters on the ATM screen to authenticate the transaction and receive cash.

With smartphones used as authentication devices, cardless transactions reduce consumer security risks related to lost or stolen cards, as well as the opportunity for skimming. Privacy is enhanced when users input transaction details on the smartphone screen rather than the ATM screen. In addition, the one-time authentication code expires immediately after completing a transaction.

Diebold's second transaction demo presents a unique option for completing person-to-person payments. A customer can set up a pre-staged transaction that authorizes access to cash to a third party. The customer inputs the payment amount and recipient's contact information, which can be selected directly from his or her contact list. The recipient then receives a one-time code he or she can use at an ATM or branch to receive money.

Subscribe Now

Authoritative analysis and perspective for every segment of the credit union industry

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.