Banks are well on their way toward the future of payments and they'll need adaptable ATMs with EMV card reader technology to do so. According to the Credit Union Times, the United States was one of the last countries to fully transition over to EMV compliance and even today, fewer than 23 percent of credit unions met the October 2015 deadline. Because of these deadlines and a need to make payments more accessible, ATMs of the future must provide services such as bill payment, money transfers and pre-paid card services.
While cashless transactions such as debit, credit, mobile payments and near-field communication payment devices are taking the world by storm, consumers often forget the power of cash. According to The Financial Brand, cash is still considered the second-most popular payment option at 40 percent. Credit and debit cards are considered the most popular at 42 percent, while older methods of payment such as hand-written checks stand at only 7 percent. These changing consumer payment options drive an important conversation among ATM owners: What services should we provide? Is an ATM worth having anymore?
One of the reasons cash payments will stay popular is a recent spike in cybertheft. According to CBS, more than 43 percent of American companies experienced a data breach of some form in 2013. In 2014, 47 percent of all American adults had their data stolen by hackers in some way, shape or form. This includes minor personal information such as email addresses or zip codes and large pieces like exact addresses and credit card numbers. In order to prevent data from being stolen via an online purchase, consumers can use a machine equipped with EMV technology to buy the product directly from the location. While the risk of data loss is still possible at an ATM, properly secured machines can guarantee more effective protect for consumers, their payment information and more.
ATMs are valid for banks and credit unions to invest in because physical money is so prevalent in a consumer's mind. The option to spend compulsively with a credit or debit card has led more American consumers to reach for cash. By providing ATMs as a valid payment options, banks can look forward to healthy financial futures.
June 16, 2016