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The Suburbanite
  • Diebold working on cardless ATM project

  • Smartphones could replace the plastic card when stopping at the automated teller machine. Diebold has begun fitting ATMs for Wintrust Financial Corp., based in Lake Forest, Ill., so customers can make cash withdrawals using a smartphone.

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  • Smartphones could replace the plastic card when stopping at the automated teller machine.
    Diebold has begun fitting ATMs for Wintrust Financial Corp., based in Lake Forest, Ill., so customers can make cash withdrawals using a smartphone.
    The test project has Diebold working with Paydiant, a company that provides cloud-based mobile payment services for banks and merchants. Wintrust is working with Fidelity National Information Services on the pilot program.
    Using a smartphone app in place of the traditional card is seen as a way of attracting consumers from the “millennial” generation, said Devon Watson, Diebold’s senior director for software product management.
    The app for ATM withdrawals likely will be part of the mobile banking package offered by financial institutions, Watson said.
    Diebold and Paydiant hope to have the system in 180 Wintrust ATMs before the year ends, Watson said.
    Other financial institutions have expressed interest in the system.
    Diebold and Paydiant have created what the companies call a mobile cash access solution to provide a convenient and secure option at the ATM, while giving banks and credit unions a chance to offer customers a branded mobile wallet.
    Diebold said its product addressed two obstacles, hardware needs and security concerns. Financial institutions don’t have to install additional hardware to provide the secure, bank-branded product. Diebold said not using a card also eliminates the threat of card skimming at the ATM.
    Frank Natoli, Diebold’s chief innovation officer, said financial institutions are asking the company for more advise as mobile technology increases.
    “Diebold brings a long-standing security philosophy and its own digital expertise to the partnership with Paydiant to offer banks and credit unions the technology consumers are looking for — a bridge from digital currency to physical cash,” Natoli said.
    Natoli predicts that mobile wallets will be used routinely by consumers, much as plastic cards are today. Diebold and Paydiant have taken a “step toward creating a mobile wallet ecosystem that offers convenience and security to consumers directly from their financial institutions,” he said.
    Reach Edd at 330-580-8484 or edd.pritchard@cantonrep.com
    On Twitter: @epritchardREP