Headless ATM - Reduce Fraud and Crime with Smart Beacons

Headless ATMs are gaining ground quickly in the US and are projected to continue to gain ground over the next 18 months. These are ATMs that do not require a debit or credit card; instead the ATM communicates directly with banking customers' smart phones. Banking customers simply log on to their banking app, request the amount of cash they would like to receive, and walk up to the ATM and scan their phones to retrieve their cash.

With the popularity of both ATM use and ATM crime running rampant, banks anticipate that the new headless ATMs will cut down significantly the number of fraudulent transactions and ATM crimes. According to an article in pymnts.com, "U.S. consumers made 5.8 billion ATM withdrawals in 2012, totaling $687 billion, according to a study released last year by the Federal Reserve." Meanwhile, a separate article in pymnts.com reports that, "All in, $1.7 billion was lost to general-purpose debit, prepaid and ATM fraud totaled in 2014, according to the Federal Reserve." Most of this loss was related to bank cards, with criminals placing cameras or scanners in or near card readers and using the gleaned information to create false cards.

Most of the new ATMs do not even have screens or key pads. There will, however, be an identity recognition device present in the ATM, as explained in phys.org: "Customers need only verify their identity, which can be done with the device's fingerprint reader, or possibly with an iris scanner on the ATM."

So in the near future, when you prepare to extract cash from your local ATM, you will want to make sure you have your phone with you for a quicker and safer transaction.

Netclearance offers a complete suite of proximity devices like mBeaconPay and mBeaconAccess to easily enable headless transactions in ATMs.

Reduce Fraud and Card Skimming with Headless ATMs

As the worldwide economy makes the gradual shift toward cashless alternatives of payment, the payment technologies we use change, as well. One of the newest innovations in payment technology is called the headless ATM and is a tool designed to prevent fraud and crime while providing for the effective transfer of payment information.

What is a headless ATM, and how does it work?

Headless ATMs are the newest innovation in payment technology, tailored to work with the proximity payment software solutions that are beginning to dominate the world economy. While most modern ATMs rely on payments in the form of cash and credit cards and debit cards, headless ATMs accept payment from alternative devices, such as smartphones and smartwatches. Using Bluetooth technology, headless ATMs are capable of establishing connections with participating devices, which transfer payment information through specialized apps.

According to a recent article from News Hour, smartphones are fast replacing credit and debit cards, as banks around the world are continually opting in favor of the new technology. The article cites benefits such as reduced security risk and ease of use as reasons that banks are making the shift toward headless ATM technology.

Netclearance's mBeaconPay

At Netclearance, we specialize in technology solutions that are specially crafted to work with headless ATMs. Our mBeaconPay hardware and software works with ATMs, smartphones, and smartwatches in a seamless manner that cooperates with existing software, making it easy to use and implement. We partner with banks around the world to help them make the shift toward alternative payment and cash withdrawal methods that are revolutionizing monetary transactions. Contact us today to learn how we can help make the shift toward headless ATMs.