In 1967 the world’s first Automated Teller Machine was introduced in the United Kingdom, or what is now called the ATM. It was silver and said “BARCLAYCASH” in large bold letters. There were two rows of numbers for entering in a six-digit pin number and a place for inserting a paper check to get cash. Since that time we have come a very long way, with ATM’s scattered across cities, in businesses and banks, and it doesn’t appear that it will be going away anytime within the near future.
How frequently is physical cash used? It is noted by critics that mobile payment apps, in addition to credit and debit cards, can bring cash payments to an end. However, when current research is looked at, this is not the case. Here are some Cash Facts based on a study that the Cash Product Office of the Federal Reserve conducted in 2014:
- Cash accounts for 40% of total transactions and is still the most commonly used form of payment for retail.
- For purchases less than $50 cash is still the most commonly used form of payment.
- The largest users of cash are low-income consumers.
- 40% of individuals 18-24 years old use cash mainly for making payments.
- Households that earn less than $25,000 per year prefer paying their bills using cash over other payment forms.
- For a backup payment method, cash is preferred.
We will heavily rely on cash for making our daily market purchases. Society is still heavily reliant on cash dispensers and cash. That may mean that the future for ATMS is much closer than it appears. Many large and small businesses today are looking to buy an ATM machine for their customers.
In New York City “Branch of the Future” by Chase was featured. There are tellers with iPads roaming around the bank, and a touch screen is featured on the new ATMs that can give exact change. It has been predicted that more banks will be using a self-serve system, which will most likely be built into ATMs, instead of having physical tellers.
Integration Of ATMs, NFC, and Smartphones
Say you can’t find your bank card but need some quick cash. At one time this was a big inconvenience. However, there is a simple solution for it now. Some banks are offering you an easy solution: access their ATM using your smartphone. This new feature allows you to access your bank account using your smartphone when you don’t have your bank card. The bank app will provide you with an access code, which can only be used for 30 minutes. You then enter it into the ATM machine. After you have entered the access code, you can withdraw cash they way you usually do. The feature is available only on bank-owned ATMs, such as CitiBank, Wells Fargo, and Bank of America.
Actually, there are many new ATM features for smartphones. Customers can withdraw cash using Android Pay and Apple Pay apps. Citibank is taking things to an entirely new level by testing a new iris scanner to be used in its ATMs, similar to the new iPhone X FaceID feature.
With touch screens so pervasive these days, and NFC technology being recently added to ATMs, it really won’t be a surprise to see these two combined at ATMs in the near future.
If you recently have gone through a Starbucks drive-thru, you might have noticed there was a friendly face that stared back at you and prepared to take your order. A similar feature is being released by Bank of America for their ATMs. The feature called Teller Assist enables video conferencing with a real teller during extended banking hours so that you can cash checks, request a loan, or withdraw exact change directly from an ATM.
ATMs more than ever are forging a path for mobile banking’s future. The technology continues to change and improve, with cameras and smartphone capability adding to the human experience. EMV technology is also making it safer to make ATM withdrawals and will continue to do so with ATMs that are more compliant.
The future of ATMs may be here very soon, so definitely watch for it! In the meantime, think about checking out our ATM models, which you can rent, lease and purchase. Be sure to ask us about the Free ATM Placement Program we offer!