Contactless ATM transactions gaining ground

ATMIA recently invited all ATM deployers and operators to participate in a survey addressing the deployment of contactless transaction capabilities – both “tap” readers and mobile Bluetooth/NFC devices. Although the response was not as abundant as expected, it has provided an excellent insight into the future availability of these popular options.

Banks accounted for 70% of respondents; 12% were credit unions; and 18% independent operators. The split between operators with 1,000 or less ATMs and those with more than 1,000 was fairly even. 101 – 1,000 ATMs was the largest segment, with 1,001 – 5,000 running a close second. One might deduce from that, that very small operators may have little interest in deploying contactless technologies.

About 57% of financial institution respondents plan to accept both NFC and “tap” transactions – and already have the vast majority of their fleets updated with those capabilities. Only 24% expect to deploy one technology or the other, which is split evenly between the two options.

As is often the case with newer technology, capability and reality often merge very slowly. Less than 18% of respondents are actually accepting contactless transactions on most of their fleet. The stats for “tap” transactions are essentially the same.

When asked about timelines, the most common response was, three years to reach operational goals. The second most common response was, within one year. About the same number said that they did not know what their timeline would be.

Contactless, in all of its forms, is definitely gaining ground in the U.S. market. And IADs are not that far behind financial institutions in making it a reality for most consumers. Keep your eyes open for something new at your favorite ATM.

Best regards to all.
David