Thursday, February 16, 2017

Cell Phones to Replace ATM Cards

The capabilities of cell phones have exponentially grown over the past few years, permeating to almost all aspects of life. They can be used to call, text, email, video chat, and even shop. Because of their usefulness, a person needs to have their phones on them at all times. Walking around campus, it is evident that people are extremely dependent on their phones. Banks are starting to see this trend as a way to create convenience for their customers. The two things that a person almost always has on them is their cell phone and wallet, so why not try to combine the two: “Customers who don’t want to fumble around in their wallet for their A.T.M. card — or who have misplaced it for the umpteenth time — will soon be able to unlock cash dispensers’ coffers by using their phone”. In a world where convenience dominates consumer behavior, people wil definitely adopt this new withdrawal method. JPMorgan Chase has already started to activate this technology on a few hundred ATM machines in four test cities. Others, like Bank of America and Wells Fargo, plan to introduce card-less options to all their machines by the end of the year.
            The technology in the phones that allows them share information wirelessly over a short distance is called near-field communications (N.F.C), which comes in the form of a chip. Other devices such as tablets, computers, and smartwatches also have NFC chips in them; a year from now you may be able to withdraw money using an apple watch. This new way of using ATMs could lead to an elimination of pins, increasing the security for your bank accounts. I have been hearing a lot about NFC technology of late, especially how their applications make life easier; something that is not always the case in the tech world.

The loss of a wallet is an ordeal that most of gone through, especially if you are in need of some cash. The goal of the banks implementing this new technology is not to eradicate the use of credit cards, but to give their customers the choice to use either a card or cell phone. Personally, having lost my debit card a few times, I wish I was able to use my cell phone to withdraw money. Having to wait a week for your new card to come in the mail to take out money can be a massive inconvenience. Within the year we can expect to see most banks adopt this new method of using atms.



Bobby Austin said...

I definitely agree with your analysis on this article. Consumer convenience will forever be at the forefront of technological innovations. With the constant innovation of smartphones, it seems like they have new capabilities each year. I think that 'combining' the wallet and cell phone is a great idea, but we also need to realize the potential personal security implications. The NFC chip is a great tool to get rid of the need for a credit card. However, we just recently talked in class about how hackers can take advantage of this new technology. Are there any preventive measures in place to ensure every users' security? According to a cyber security website called, hackers are taking advantage of NFC chips in Android phones. They are downloading apps to counter the close proximity requirement of the chip, which makes it easier for them to steal data. I think that service providers need to install more security measures to protect the users. For example, creating an personalized authentication system for each NFC device would be a way to possibly stop the hackers. While innovation and convenience are great, it can never come at the cost of personal cyber security.

Jason Baskind said...

When I first read this, the first thing that I worried about was security. From my own personal experience, along with what I have seen with my friends and family members, people tend to lose their phones more often than their wallets. This is probably because everyone is constantly using their phones and taking it out of their pockets, while taking out your wallet happens less frequently. So when I first glanced at this title, I said to myself that there is no way I would do this. I figured why add more risk to losing my phone over something so little as convenience. But, after further reading the article and other articles on this same topic, I actually see how this is very secure and safe to do. It might even be safer than having an ATM debit or credit card so vulnerable in your wallet. Not only do you still have to use the pin code, but also there is now an additional fingerprint scan required to access the card. This sounds much more secure to me. Also most of the people that I know have phone passcodes just to simply get into their phone. While I am sure there will still be ways to hack into peoples cards on their phone, It does sound a lot safer than carrying a debit or credit card around with you everywhere.
I agree with your statement on how frustrating it can be to lose a card. I lost my debit card last year, and while it wasn’t hard to get a new one, it was still annoying having to cancel my lost card and then wait a week or so for a new card to come in the mail. The good thing about having your card on your phone is that even if you lose your phone, you can track its location with find my iphone. Most of the time it is pretty quick to locate where your phone is and then retrieve it.
I also agree with you that this will probably become extremely popular due to its convenience. You are right in saying that convenience dominates consumer behavior. Convenience is what the customers want these days, and making it so you can access your credit accounts through just simply your phone certainly makes things more convenient. Overall, I agree with you completely and really do think that this is an impressive step for technology. I can’t wait to see how this plays out over the next year.

Sam Norton said...

After reading your article about banks allowing customers to use their cell phones instead of their ATM cards, I agree that the next era in the financial service industry is digital. Other banks, especially those lacking in size and digital savviness will have to keep up and not lag behind on even the basic mobile features. I read that JPMorgan Chase, who leads the financial services industry in their digital expertise, has the most ATM’s in the United States with 18,000 ATM machines. JPMorgan Chase launched it in 2016. It is not surprising that Bank of America, the top brand in banking, and Wells Fargo, plan to launch the option by the end of this year.
I believe because almost everyone in the world is going mobile, mobile is driving the future. We rely on our cell phones for everything. As digital becomes the wave of the future in banking, banks that fail to have cutting edge mobile capabilities will be out of the loop. Our society has already shifted from cash to card, so I expect it to shift to having the cell phone replace both. Technology will most likely eliminate all credit cards, gift cards, store cards and ID’s. Our mobile devices will be our primary means of identification and commerce.
There are many advantages to using a cell phone instead of an ATM card. It would be faster. In today’s warp speed-world, it would entice people who have little time.
Another key advantage is safety. A thief would not be able to exploit data from an ATM and there would be comfort in knowing that a crook needs to have both your mobile phone and the log in information to your bank’s mobile app to steal your money.
I believe that a cell phone replacing ATM cards is a great idea. I currently leave my dorm room with my wallet, car key, dorm key, and cell phone. Carrying one item, my mobile phone, would make it easier. The only disadvantage is if the battery on your mobile device runs out of power then you would not be able to access ATM facilities.

The way customers are banking has changed over the years. People are using their mobile phones, on line and ATM’s more than they are going to tellers at a bank. Simply put, ATM transactions exceed teller transactions. With that said, mobile cash is the trend that is shaping the future in banking.