Cardless ATM’s Coming to a Bank Near You

In our recent report “The Quiet Revolution” we discussed the digital driven innovation which is driving fundamental changes in financial services. Many customers are simply expecting more from their banks. Yesterday CBA announced three important steps in this process including cardless ATMs. Westpac also announced somewhat similar cardless ATM facilities, though offered using a call centre initially. The CBA release highlights the importance of the digital revolution for the future of banking, and I reproduce it in full below. It is worth reading.

Three things of note, the use of the app to initiate the payment, a daily limit, and a 100% guarantee on all mobile payments. The revolution continues….with the prediction that a mobile wallet will replace a physical one by 2021. But will we need cash at all by then?

“Commonwealth Bank continues to lead its rivals in the mobile banking and payments space, today announcing three new innovations that extend the capabilities of its mobile wallet offering and give businesses access to world-class mobile payment technology. Following the launch of the new and enhanced CommBank app and Tap & Pay mobile payment technology late last year, CommBank is adding two new Australian-first features to the CommBank app giving customers unprecedented access and control over their finances on-the-go. A new app and payments device will support mobile small businesses.

The innovations announced today are:

  • Cardless Cash – Australia’s first cardless cash service, enabling customers to use the CommBank app to withdraw cash without a card across CommBank’s national ATM network.
  •  Lock and Limit – an Australian-first, giving CommBank credit card customers additional control over their card security and spending via the CommBank app. The feature will enable customers to lock certain transaction types and unlock them only when required and set a limit per transaction.
  •  CommBank Small Business app – a simple next-generation app, powered by Pi1, enabling small business customers to accept on-the-spot payments, create estimates and invoices instantly, and manage their cash flow and business operations efficiently from their mobile device.

“Mobility is not a trend; it is increasingly our way of life. Commonwealth Bank is launching three mobile banking innovations to provide the anytime, anywhere functionality our customers demand while also delivering unrivalled, real-time access and control over their finances,” said Michael Harte, Group Executive Enterprise Services and Chief Information Officer, Commonwealth Bank. “Our customers demand more transparent, open, relevant and secure solutions, increasingly in real time, to help advise and support important decisions. These new mobile offerings will improve our customers’ banking experience by placing information-rich, value-added services and additional security at their fingertips at the time they need our help. The Commonwealth Bank is a leader in customer service and mobile banking; payments technology is just one way individuals and businesses get better value,” Mr Harte added. Since its launch in late 2013, the enhanced CommBank app has seen more than 2.3 million registrations, enabling more Australians to manage their money securely on-the-go.

Cardless cash

From accessing cash when cardless, to helping a family member or close friend out if stranded without cash in an emergency, Cardless Cash enables customers to withdraw up to $200 cash a day, without a card, at over 3,000 CommBank ATMs nationwide. “Demand for contactless and mobile payments continues to rise; in a single week the new CommBank app now supports 9 million logons and executes over 2 million transactions. Following the introduction of Tap & Pay technology to Australian smartphones, we have now developed the next evolution of the mobile wallet. Cardless Cash provides a convenient and secure solution for customers to withdraw cash from Australia’s largest ATM network via their smartphone without needing an ATM card,” said Lisa Frazier, Executive General Manager Digital Channels, Commonwealth Bank. “Cardless Cash not only gives our customers convenient access to cash when their card isn’t available, but also the ability to help out a family member or friend by sending cash to an ATM for collection in an emergency situation,” Ms Frazier added. Angus Sullivan, Executive General Manager Cards, Payments, Analytics & Retail Strategy, Commonwealth Bank added that Cardless Cash is another step towards providing Australians with a fully functioning mobile wallet. “Customers see banks as the natural providers of their mobile wallet and we will continue to offer the latest solutions to enhance their day-to-day banking experience,” said Mr Sullivan. Cardless Cash will be available to CommBank app users on Android and iPhone in May 2014.

Lock and Limit

The new Lock and Limit feature allows CommBank credit card customers to use the CommBank app on their smartphone to control the security and spending on their card:

  • In-store international payments – for greater peace of mind, customers can lock these transactions when not overseas.
  • Online international payments – the ability to lock the card to block transactions made on international websites, then simply unlock it again to make a purchase.
  • Block ATM transactions – customers who never withdraw cash from their credit card, can now block ATM cash advances to prevent others from taking money out.
  • Transaction limits – the ability to set the maximum amount the primary or  joint card holder can spend in one transaction, to provide more control over spending.

“Today we are putting more control in the hands of our customers, with a proactive solution to help them manage their spending and card security. With Lock and Limit our credit card customers not only have a safer way to pay, but also one of the most advanced ways to manage their finances from the palm of their hand. As trust and security become the key drivers of mobile banking and payment adoption, this new innovation puts CommBank way ahead of its rivals,” said Mr Sullivan. “With the majority of Australians expecting a mobile wallet to replace their physical one by 2021, the innovations we’ve announced today put our customers at the forefront of the mobile wallet revolution,” said Mr Sullivan. The Lock and Limit feature will be available in May 2014 for Android and iPhone.

CommBank Small Business app

In response to small business customer demands for faster, more efficient and convenient payment options, CommBank has launched the CommBank Small Business app. When paired with Leo or Emmy, the CommBank Small Business app will revolutionise the way small businesses accept payments and manage their cash flow. New features and functionalities include:

  • Immediate payments – on-the-spot payment options to make it easier for businesses to get paid via card, including contactless, Chip & PIN and swipe payments, BPAY, EFT, cash and cheque.
  • Estimate and invoice creation – the only compliant mPOS that enables customers to issue estimates and invoices anytime, anywhere, and accept payment, reducing paperwork and time spent on administration.
  • Payment tracking and debt management – enabling businesses to keep track of outstanding invoices on-the-go.
  • 24/7 technical support – trained telephone support teams available 24 hours a day.
  • Secure payments – one of the most secure mPOS terminals in the market with EMV Chip payment capabilities and PIN Pad encryption to support the new PINwise mandatory changes.
  • Low cost for even the smallest merchants – a Simple Merchant Plan provides access to all features and Emmy from only $30 per month all inclusive.

“We’re passionate about helping Australian businesses access state-of-the-art payment technology. We have taken our existing payment and banking apps and evolved them based specifically on feedback from small business customers to create the CommBank Small Business app. Coupled with Everyday Settlement and Commonwealth Bank’s Simple Merchant Plan, we are not only supporting the cash flow management needs of small businesses, but also helping them stand out from their competitors and run a more efficient business,” said Ms Frazier. The CommBank Small Business app will be available as part of a Simple Merchant Plan on iPhone and Android devices from June 2014.

Security at the heart of innovation

Security remains a top priority for CommBank and all mobile transactions are backed by a 100 per cent money back guarantee.”

Author: Martin North

Martin North is the Principal of Digital Finance Analytics

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