Wired had earlier reported that Chase will be rolling out the contactless ATM plan spread over two phases in the upcoming years. So this is how it will work, users will be asked to authenticate on their mobile banking app, post which a unique seven-digit code is generated, much like an OTP which will allow them to access the ATM without their debit card. This is what Chase spokesman had to say about the new initiative “This doesn’t replace the debit card. It’s just giving customers a more convenient choice in case they don’t have their debit card on them.” That being said the OTP method of using the ATM is not the ultimate as it is most likely that bank will soon introduce the NFC enabled ATMs which would literally allow users to use their mobile devices as plastic cards. Another interesting aspect is the fact that banking majors are yet to confirm if they support Apple Pay and in all possibility there exists a chance that the Banks will roll out their own NFC enabled payment systems just like how they did with the card swiping POS systems. On the brighter side, this move will promptly tackle the adversities of using a physical card including skimming and fraud. Criminals need to break the strong encryption of the mobile payment system which would simply not be possible for petty thieves.
