It’s App, Tap and Go at ATMs Thanks to Mastercard and Diebold Nixdorf

June 4, 2018 | By Dan Goodman

You know the routine: phone, wallet, keys – check! And out the door! But what if you stopped to give that routine a second thought? To challenge the status quo? That’s exactly what my team and I do every day.

Most of us know the routine at the ATM: swipe or insert, tap a few buttons and grab your cash. That, we decided, wasn’t good enough for the millions of people who use an ATM every day. So, we took the latest technology, found a way to make a process many took for granted even easier and introduced Cardless ATM powered by Mastercard®. A new, mobile experience will bring all the conveniences of digital payments – increased speed, security and transparency – to cash withdrawals. And we just set out to test the waters in a big way, with one of the largest ATM manufacturers in the world, Diebold Nixdorf.

The partnership between Mastercard and Diebold Nixdorf is to run trials with two ATM products – Mastercard Cash Pick-Up and Cardless ATM powered by Mastercard®. We’re testing the integration of our technology with their ATMs and middleware, ultimately enabling Diebold Nixdorf to offer these enhancements to their customers (banks and Independent ATM Deployers) in an easy-to-deploy service.

Cash Pick-Up, announced last year, turns the ATM into a disbursement channel even if the beneficiary doesn’t have a bank account or a debit card. Click to learn how it works.

Cardless ATM will allow Mastercard cardholders to take cash out from the nearest participating ATM whether in their home town or while traveling abroad – initiated from the convenience of the consumers’ mobile banking app. Here’s how it works:

    • Consumers open their bank’s app on their smartphone.
    • They use the app to find nearby ATMs, choose the amount they want to withdraw and see the associated fees.
    • Once at the ATM, they quickly snap or tap, often by scanning a QR code, authenticate using optional biometrics on device, and take the dispensed cash.

By handling the majority of the transaction through the app, the consumer ensures sensitive information is only shared through the Mastercard cloud. Personal identity can be established by biometrics on the consumer’s device and tokenized card information is sent over the Mastercard network. Those who worry about fraud, skimming, and lack of fee transparency at ATMs can now handle those transactions more confidently.

Cardless ATMs will help put bank managers’ minds at ease as well. When using a physical card, today's consumers rely on a consistent experience at millions of ATMs across the world. Our partnership with Diebold Nixdorf will bring global scalability to digital products for ATMs, so consumers’ experience stays consistent and banks further cement their relationships with them.

I’m heading to the Mastercard showcase at Money 20/20 Europe on June 4 – 6, 2018 to show the industry how it all works. I’ll be there with Douglas Hartung from Diebold Nixdorf. Come stop by, say hi and check out how it all works live.

Dan Goodman