Contactless ATMs: Exploring the Idea of Touchless Banking

Contactless ATM

The move of touchless banking has increased significantly over the last few years, with the COVID-19 pandemic giving already existing technologies a boost. Until 2019, contactless payments accounted for only a small percentage of all transactions in the U.S. However, the country is now among the biggest global markets for touchless banking. It comes as no surprise, then, that some of the country’s top banks have already deployed contactless ATMs, and it’s only a matter of time before others follow suit.

The Benefits of Going Contactless for Banks

Banks can benefit from going contactless in different ways. For example, touchless technologies can help create highly secure access control systems for employees and customers alike. In addition, they can make way for enhanced security through multi-factor authentication protocols and high levels of encryption. Other benefits include:

  • Digital banking. From offering online banking platforms to contactless ATMs, banks may use touchless technologies to provide various digital banking solutions.
  • Contactless payments. Scores of retail customers across the world now prefer making contactless payments. Banks can ride this wave by ensuring their merchant account holders carry the required technology.
  • Mobile wallets. Mobile wallets have found particular success with the younger generation. By offering mobile wallets, banks may look forward to penetrating this demographic. What also helps is that it’s possible to use a mobile wallet with a contactless/cardless ATM.

What Technologies Do Contactless ATMs Use?

A contactless or cardless ATM is one that you may use to access your bank account and withdraw cash without requiring a physical debit card. However, you will need to store your card or bank account information in a digital wallet. Cardless ATMs rely on different verification technologies, and the most common ones are:

  • Biometric verification. ATMs that use this technology verify your identity by scanning and recognizing your fingerprints, face, or iris.
  • Near-field communication. Near-field communication (NFC) enables you to connect your phone to an NFC-enabled ATM, typically by tapping your phone on the ATM and entering your PIN.
  • Quick response codes. Depending on the contactless ATM you use, you might be able to scan a quick response (QR) code to access your bank account.
  • Verification codes. Some cardless ATMs that let you begin a transaction on a mobile app send a one-time verification code that you need to enter in order to continue.

How Do People Use Cardless ATMs?

Not every contactless ATM works in the exact same manner, given that they use different verification methods. However, using one involves following these basic steps.

  • Open a mobile wallet or banking app
  • Verify your identity
  • Carry out the transaction


It’s plain to see that an increasing number of people are choosing to make contactless payments at merchants and cash withdrawals from ATMs. As a result, just about every leading ATM manufacturer has started offering its customers one or more contactless alternatives from which to choose. If you think your business might benefit by getting a cardless ATM or upgrading to one, discussing your requirement with an ATM processing and management company might be in your best interest.

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