Customer Service
Mobile cash technology: Get bills from the ATM, but leave the debit card home
John Clatworthy, SVP, chief customer and strategy officer for Cash Connect, explains what mobile cash technology is all about and how it can help keep consumers safe and secure.
November 24, 2020 by Pat Shea — Editor, NetworldMedia
How important is the ATM cash machine?
According to an insight summary report by Mercator Advisor Group, U.S. consumers generally rely on ATMs to fulfill banking needs, and consumers are more than four times as likely to use their own bank's ATM (94%) as another bank's ATM. And, given today's surging COVID-19, there is a big focus on keeping consumers safe and secure wherever they hit an ATM. Mobile cash technology is one strategy that can make that happen.
Retail Customer Experience's sister site ATM Marketplace interviewed John Clatworthy, SVP, chief customer and strategy officer, Cash Connect, to learn more about mobile cash technology and its benefits to ATM customers.
Q. What is mobile cash technology?
A. Consumers are increasingly utilizing payments through mobile technology. The mobile cash app provides an opportunity for consumers to have the convenience of using their cell phone combined with the functionality of cash. Banks have seen a pretty good adoption of that service from customers prior to the pandemic because it does offer additional convenience and security, but in this era, where people are hesitant to be in physical contact with things like an ATM, it has certainly seen an increase
Mobile cash provides a secure and convenient solution to obtaining cash from an ATM using an app. With the increase in logical ATM threats, like skimming and jackpotting, mobile cash does not require the merchant to insert their debit card or sensitive information into the ATM. The benefit of mobile cash is if a customer forgets their debit card or just wants to travel with their cellphone, they can still access cash.
The mobile cash app works the same way as a debit card when withdrawing money. As long as the customer is using an ATM in their bank's network, there shouldn't be any additional fees charged. And mobile cash provides more security as the code is for a one-time only use, unlike a debit cards which will prompt you for the same code each time they use it.
Q: How does mobile cash work?
A:Mobile cash uses a two-step verification process to withdraw a pre-determined amount from the customers cell phone from a participating ATM. Here's how it works: the customer opens and logs into the mobile cash app on their smartphone. The customer sets the amount of cash and the account to withdraw from, and taps the mobile cash option on the corresponding ATM. Once the mobile cash function code comes up, the customer can scan the code on the ATM and the selected amount of cash will dispense with a transaction receipt.
Q: What is the "mobile cash function code"?
A: The mobile cash function code is a special one-time use QR code that will work in conjunction with a smart phone mobile cash application and helps complete the cash transaction.
Q: Does mobile cash work with any bank app?
A: No, the mobile cash app will not work with any bank application. It must be through a participating bank and ATM.
Q: Does mobile cash replace a customer's PIN number?
A: Yes. Mobile cash utilizes a one-time function code instead of submitting the same PIN code associated with the customers debit card.
Q: Do you think despite the migration toward digital that there is still a need for cash? Why?
A: Yes, there is still a need for cash. In the United States, cash is used for small-value payments and 35% for in-person payments. Mobile cash provides a transition between the usage of digital services with the physicality of cash.
Q: Will the mobile cash app work for any amount of cash to withdraw or does it need to be a larger withdrawal?
A: A study from Cardtronics Inc. in April 2020 found 54% of U.S. consumers preferred cash payment for transactions under $10, and 80% agreed with or were neutral with the notion that cash is as important today as ever. It's no surprise that people like to keep some cash in their pockets. And with the mobile cash app, customers have an option for getting cash from an ATM in a safe and secure manner.
Q: Does mobile cash only work for withdrawals?
A: Mobile cash is only available to withdraw cash from an ATM.
Q: Where is this technology being used?
A:This technology is being used nationwide, but only with select ATMs and participating banks.
Q: What do you think the future of ATMs will be in regard to this technology?
A: Cash Connect believes this technology will improve ATMs and impact consumer behaviors. There will be more universal solutions in the market, eliminate the usage and risk associated with debit cards and focus on mobile bank applications and the continued use of cash for small payments.
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