Now Onboarding: Your ATM

We’re Unveiling a First in Mobile Payments at Money20/20.

I dig Money20/20. I’ll be in Las Vegas for this annual payments conference in a few days, just one of thousands of software and payments nerds experts who look forward to the event all year long in anticipation of exploring the latest and greatest advancements in the payments and banking industry.

That’s important to me, since much of my time throughout the year is spent with Diebold’s Innovation team, the people in our organization who sit at the edge of the visible field of view. That is, we’re identifying and addressing emerging trends and pain points in the retail banking industry – both for our customers, and for their consumers.

ATM Marketplace recently asked financial institutions (FIs) which new functionality they felt was most important to add to their self-service networks. The number one answer? Cardless transaction support, followed closely by mobile-phone integration. Our work bridges the digital and physical worlds of currency – and this year, it’s all about mobile.

Money20/20 provides us with an outlet to showcase our own breakthroughs. And will be doing just that next week on the show floor (at booth #1831). We’re debuting and demoing an industry-first: XPRESSION™ SafeLoad, a secure and convenient way to onboard a user to a payments service through an ATM. We’re walking visitors through a process that provides instant issuance of a near field communication (NFC)-enabled, bank-branded digital wallet from SimplyTapp, pre-loaded with authenticated credentials from the ATM.

It’s time to stop thinking about the ATM as a cash dispenser.

In 2013, we pioneered Mobile Cash Access, a prestaging tool that enabled consumers to withdraw money from our Millennial-Inspired ATM using a Quick Response (QR) code. With XPRESSION SafeLoad and NFC enablement, we’ve upped the ante.

While cash dispensing – and perhaps as importantly, depositing – are primary functions of the ATM, it is also a highly secure access point used to authenticate an individual and then provide trusted financial and payments services to them. XPRESSION SafeLoad uses the “card present” PIN authentication of the ATM and repurposes it as a secure, convenient consumer onboarding process. It’s a solution that’s already in pilot testing with a select group of banks internationally.

XPRESSION SafeLoad 101 

  • It mitigates Yellow Path fraud: As new mobile players have entered the payments space this year, new cracks in the armor have emerged. Pymnts.com evaluated the frequency of Yellow Path fraud in a recent article  that exposed the weaknesses in typical “card-not-present” onboarding (in which consumers enter their card numbers into their phones by hand or snap a picture). According to a mobile payments expert quoted in the story, fraud in the hundreds of basis points (bps) “is now seen hardly as an anomaly.” Compare that to card-present PIN debit fraud rates of 0.87 bps.
  • The ATM acts as a secure authenticator: At a self-service terminal enabled with XPRESSION SafeLoad, consumers enter their card and PIN in a two-step authentication process. When they choose the on-screen option to enable a mobile wallet, they enter their smartphone number and immediately receive a text with a link to download the app.
  • It’s NFC-enabled: Apple Pay® quickened the pace of mobile NFC adoption for contactless payments. Retailers are quickly incorporating NFC readers as they upgrade their terminal infrastructure in response to the recent EMV liability shift. These factors indicate that NFC is likely to lead the pack as the payment credentialing tool of choice. With these forces in mind, we partnered with SimplyTapp to provide a white label option for a financial institution’s Android users.
  • It works via Host Card Emulation (HCE): HCE utilizes encrypting devices such as tokenization to protect consumer data. SimplyTapp coined the term HCE. This method prevents any secure information from being stored on a user’s phone; instead, when a consumer taps their phone to an NFC device to make a purchase or withdraw money from an ATM, the transaction information is shuttled through the cloud, where it’s stored securely and privately.
  • FIs brand the service themselves: I saved the best for last. In a landscape where financial institutions are routinely expected to slide their digital cards into someone else’s mobile wallet, SafeLoad and Mobile Cash Access offer a white-label solution that enables FIs to own the branding, the look and feel of the experience, and the visibility to their own consumers’ transactions.

Don’t just carve a niche; stake a claim. 

“A bank that deploys their own solution within their own app faces far fewer friction points,” wrote SimplyTapp co-founder Doug Yaeger recently. “For contactless payments to endure, banks are better off using their own apps to court users.” As a systems integrator for the retail banking industry, we couldn’t agree more with the concept that banks themselves should be in control, with the most visibility and opportunity to act on a 360-view of their consumers.

This is an amazing time of change in the payments and banking space. Consumer demands, technology capabilities and competitive pressures have never shifted so quickly beneath our feet, but we believe that through collaborative innovation with clients and partners it is possible to navigate these trends and innovate one step ahead of the marketplace.

Find us at Money20/20 (booth 1831) in Las Vegas, NV, Oct. 25-28, 2015; learn more about our latest innovations.