Chase Bank Goes Cardless

Mobile Wallet Apps Get a Boost from NFC-Enabled ATMs


Last week, Chase, one of the largest banks in the US, announced that its customers no longer need a physical debit card as the financial giant has rolled out near-field communications (NFC) to most of its 16,000 automated teller machines in its US network.

To use the cardless ATM service, customers need to link their Chase accounts with one of several popular mobile wallet services, namely Apple Pay, Google Pay or Samsung Pay. After this step, customers only need to start the wallet app, wave it in front of the machine and enter their PIN.

According to its annual report, JPMorgan Chase offers at least one type of service to 61 million households, so it already has some sort of connection to half of the US. With its NFC-enabled ATMs, Chase is bringing a huge level of exposure to the top mobile payment services.

Chase will keenly promote its cardless service, pushing more people to sign up for one of the three major mobile wallet services. Other major banks in the US, like Bank of America and Wells Fargo, have also debuted similar mobile-connected capabilities.

ATMs started being introduced in many markets about 50 years ago and are considered a major innovation in the consumer banking sector, offering customers near-instant access to their money without the need for direct interaction with bank employees. But physical cards have several flaws, as they can easily be lost or compromised, and the cost of replacement can be a significant burden for banks.

Still, going cardless doesn't necessarily spell a cashless society, at least not in the near term. In the UK, banks have been investing to introduce innovative features to their ATMs, in an effort to keep up with people's dependency on smartphones, and to bring more of their banking services online.

Barclays, for example, has equipped its machines with contactless technology, allowing customers to take out cash using its mobile app for Android smartphones. The company is also experimenting with another hot topic in tech: biometrics (see, for example, Biometrics Are in the Cards). It's betting on machines that scan a user's unique finger-vein pattern to identify them and grant access to their account without having to enter a card or PIN.

As traditional banks continue to harness the latest technologies to help fuel innovation, we expect the trend of phone-based withdrawals to be a windfall for Apple, Google and Samsung, giving consumers another reason to begin using their mobile wallet services.

This entry was posted on August 8th, 2018 and is filed under Devices. You can follow any responses to this entry through the RSS 2.0 feed or you can leave a response.

Posted By Raghu Gopal On August 8th, 2018


Comments
(There are no comments yet)
Leave a Comment

Hot News

Team Tweets

CCS Insight
Can network operators convince people to connect a second line for companion devices like the tiny new Palm?… https://t.co/i3vA0uwoRX
Follow CCS Insight
Shaun Collins
RT @GSMA: Is your company revolutionising the capabilities of #mobiletech? Apply for the 2019 #GLOMOAwards for your chance to win the Best…
Follow Shaun
Ben Wood
RT @CCSInsight: Can network operators convince people to connect a second line for companion devices like the tiny new Palm? https://t.co/P…
Follow Ben
Martin Garner
Great signage in the exhibition halls at #IoTSwC18 in Barcelona. https://t.co/QWi8OWyccQ
Follow Martin
Geoff Blaber
Agree 100%. I can’t think of any other consumer company that has elevated privacy to a product feature https://t.co/11PfExhSre
Follow Geoff
Marina Koytcheva
Facial recognition will be just one of the technologies traditional retail will deploy to stay competitive with onl… https://t.co/CDMJtliiLm
Follow Marina
Nicholas McQuire
A great @paulhewerdine @earnestagency summary capturing the breadth of #CCSPredicts
Follow Nicholas
Angela Ashenden
According to our 2018 survey, @WhatsApp is the most used mobile app by employees for work. That's a serious concer… https://t.co/IZcOs1ak4z
Follow Angela
Kester Mann
Hot off the press! @CCSInsight’s latest #5G update. News, analysis, status-updates and deployment schedules. A to-t… https://t.co/UgSnSooz3W
Follow Kester
George Jijiashvili
RT @benwood: Just published on @CCSInsight daily blog. My take on Huawei’s news today. ”These announcements confirm Huawei's seat at the to…
Follow George
Laura Simeonova
RT @benwood: P20 devices testament to Huawei's ambition in smartphone market. Consistently improving design, capabilities and appeal of its…
Follow Laura
Katie Taylor
An important thread to dive into if you're at all unclear on the current state of Brexit and the outcomes of our op… https://t.co/4y9xqmg9PP
Follow Katie

Recent Blog Posts

Blog Post
Small Ambitions Is the Tiny Palm Phone the Start of a Big Trend? This wee... Read more
Blog Post
A World without Traffic Lights Can Cities Really Get This Smart? In a world where ever... Read more
Blog Post
Huawei Squares Up to Smartphone Rivals Adds New Mate 20 Series Devices to Its Arsenal I've attende... Read more
More blog

Latest Company News

Blog Post
Networks' Ambitions to Launch 5G Early Raise Global Forecast New CCS Insight forecast predicts 5G connections will reac... Read more
More news