Will smart phones eventually make bank cards redundant? Image source: Shutterstock (#348158087)
JPMorgan Chase tests a new cardless cash withdrawls option at A.T.M.s by utilizing the cellphone. The new technology has already been activated on a couple of hundred machines in cities like Miami and San Franciso. The Bank of America and Wells Fargo plan to install a similar technology by the end of the year. However, the way the system works will be different in each bank. It could even vary within one bank. Most of the major banks use the near-field communications (N.F.C.) technology. Devices exchange information wirelessly over short distances. Smartphones normally contain a N.F.C chip which is also used for e.g. Apple or Android Pay. The Bank of America, for example, will have a slightly different approach. Customers have a digital wallet app. When they are at an ATM, they tap their phone on the cash machine’s wireless pad so that their identity will be confirmed. Then they enter their personal identification numbers and the transactions work as usually.
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