Withdrawing cash from an ATM has become second nature.
However, new machines being tested by Citigroup Inc. could change the entire process by eliminating the need for debit cards, Peter Rudegeair at the Wall Street Journal reports.
Citigroup is collaborating with ATM-manufacturer Diebold to make a machine that scans customers’ eyes or a code on a smartphone to withdraw cash.
The new technology aims to make transactions more secure. No debit cards means no card skimming — when someone puts a fake card reader over an ATM’s real card reader — which accounts for over 80% of ATM fraud.
No debit cards also means no screen or touchpad on the ATM.
Rather, the customer would log in to their bank’s mobile app and select how much money they want to withdraw. They would then approach the machine, which would spit out the exact amount of cash requested after scanning their iris to confirm their identity.
If the way we use ATM machines does change, it wouldn’t be in the near future.
Citigroup is still testing the technology and deciding whether or not to proceed with such a costly and time-consuming transition.
As we’re seeing with the recent shift to EMV technology — which will require consumers to “dip” their new, microchip-embedded cards, rather than swiping them — these changes take time.
Experts expect the EMV transition to be a several-year-long process. If Citigroup decides to start rolling out these new machines, there could be a similar timeline.