Next-generation cardless ATMs gain global momentum

A global shift in banking technology is seeing the rise of next-generation, cardless, and keyless ATMs. These new systems aim to replace traditional physical keypads and card slots with mobile-driven processes to enhance security and hygiene.

In this new model, often called “Cardless ATM,” users manage the majority of the transaction—including entering security PINs, selecting accounts, and determining withdrawal amounts—directly through their bank’s mobile application. The ATM then acts primarily as a cash distribution unit, verifying the request via QR codes, NFC (Near Field Communication), or one-time codes.

This transition is driven largely by cybersecurity concerns. By moving sensitive data entry to a user’s personal device, banks aim to eliminate risks associated with physical hardware, such as “skimmers” (devices used to copy card data) and hidden cameras used to steal PINs.

Implementation varies by region: the US utilizes NFC and mobile wallets like Apple Pay; India employs UPI-based QR code systems; and Turkey has expanded QR code-based withdrawals through major banks. In Europe, networks like Geldmaat are adopting touchscreens and mobile verification to reduce maintenance costs and improve hygiene.