Mastercard Effort Aims to Promote Contactless ATM Use

Mastercard has launched a collaboration with NCR Atleos and ITCARD focused on contactless ATM use.

“Traditionally, ATMs dispensed cash only after users insert or tap cards and enter PINs,” Mastercard said in a Thursday (Sept. 11) news release. “In today’s digital-first world, consumers expect faster and more seamless experiences in-store, online, and even at ATMs.”

While multiple countries in Europe — Poland, Switzerland and Austria among them — use contactless ATMs, they still require cardholders to enter a PIN while also authenticating themselves through a mobile wallet using biometrics.

“This creates unnecessary friction,” the release added. “The Consumer Device Cardholder Verification Method (CDCVM) streamlines this process, verifying a cardholder’s identity using a mobile device for contactless payments.”

With this method, consumers authenticate themselves on their phone before tapping the ATM to begin their transaction, thus streamlining their interactions at the ATM with no physical wallet, plastic card or PIN needed.

Mastercard said its initial testing found that contactless ATM transactions using CDCVM were, on average, more than 20% faster than those requiring PIN.

“This breakthrough marks a pivotal moment in the evolution of the consumer experience,” said Johan Gerber, executive vice president, head of security solutions at Mastercard.

“By enabling biometric mobile authentication at ATMs, we are redefining the consumer experience, simplifying it without sacrificing security. Together with our partners, we are making everyday financial interactions safe and more intuitive for everyone.”

According to the release, CDCVM at ATMs is currently being piloted in Poland, with plans for the method to become available across all markets next year.

This partnership is happening at a time when consumers are increasingly expecting smoother experiences when making purchases as the contactless economy flourishes.

“It’s not just about looking into the future anymore. This is about offering solutions that consumers expect today,” Julie Malikayil, senior manager, payments products at Discover Network, said in an interview with PYMNTS in June.

As that report points out, contactless transactions, backed by innovations like mobile wallets, tap-on-mobile  and open-loop transit payments, are turning into the expected go-to method of payment. For younger consumers who grew up with smartphones and are used to digital convenience, the ability to pay anytime, anywhere with one tap has gone from being a luxury to an expectation.

“If you don’t support contactless, you may be missing out on business,” Malikayil said. “Technology is moving faster than [businesses] can keep up with.”