Cellphones Replace ATM Swipe Cards in Denmark Trial

NCR Corp, AU-System and beamtrust have started a pilot project enabling consumers to obtain cash from a traditional cashpoint (ATM) using a mobile phone. The live pilot project is taking place in Denmark and involves cash withdrawals from three ATMs owned by Spar Nord Bank and Laan & Spar Bank. The consumer is able to initiate the transaction process prior to approaching the ATM, choosing the transaction type, amount and account details. At the ATM, the consumer enters the security personal identification number into the mobile phone and the transaction details are transmitted to the ATM. The ATM processes the transaction and dispenses the cash.

During the initial phase of the trial, the companies will assess the ease of use and how consumers adapt to the replacement of the magnetic-stripe card with a mobile phone to withdraw cash. The Danish pilot is the first time a mobile phone is being used to withdraw cash in a live environment at a traditional ATM rather than a concept model.

Although infrared technology is used for the communications link, ATMs could also be adapted to accept Bluetooth technology once this has come into more widespread use.

Mark Grossi, chief technology officer at NCR's Financial Solutions division, said, "This is something we have been working on for some time. Mobile phone use in Europe in particular has really taken off. People are using their phones in ways we could not have imagined a short time ago and they have become an essential part of people's increasingly mobile lifestyles."'"

Posted to the site on 29th April 2002