MasterCard tests cardless cash pick-up (MA)

BI Intelligence

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MasterCard is testing MasterCard Cash Pick-Up, a mobile cash disbursement service that allows users to access cash from a participating ATM using only a mobile phone.

The service allows users, including as individuals or companies, to send money to anyone via a text message, providing the recipient with an order number and PIN that they can then use to retrieve the cash at an ATM without using a card.

The service was initially presented at the FinovateFall 2017 conference on September 11 and will be piloted in the US during Q4 2017. 

Cardless ATM technology, such as what MasterCard is introducing, can add convenience and drive customer engagement.  

• By leveraging convenient technology like cardless ATMs, banks should be able to reach more customers. Cardless ATMs decrease transaction time from 45 seconds to 10 seconds, not only giving banks the ability to serve more customers daily, but also appealing to customers who need fast transactions. And they can increase customer engagement, as users with access to cardless ATMs tend to complete one to two more transactions per month. 
• Cardless ATMs have the potential to be more secure than traditional ATMs. Eliminating the need to use a card can decrease fraud methods — like skimming — and ultimately make ATM usage safer. Therefore, cardless technology can help reduce ATM fraud, which was responsible for 70% of total debit card fraud last year. And from 2014 to 2015, overall ATM fraud rose by 546%. 

MasterCard Cash Pick-Up can extend the reach of the card network and the participating banks. Enabling peer-to-peer (P2P) money transfers that have a cardless ATM cash-out allows MasterCard, and the banks that support MasterCard Cash Pick-Up, to extend their reach to consumers who are underbanked. MasterCard is leveraging both digital and physical cash regardless of the increasing popularity of P2P payments — Venmo, the P2P market leader, saw $14.8 billion in volume in the first half of 2017 — as consumers still use traditional technology, such as ATMs. By integrating the two channels, MasterCard Cash Pick-Up can be an appealing option for consumers. 

Dan Van Dyke, senior research analyst for BI Intelligence, Business Insider's premium research service has written a detailed report that explores the digital payments ecosystem today, its growth drivers, and where the industry is headed. The report also: 

• Traces the path of an in-store card payment from processing to settlement across the key stakeholders.  
• Forecasts growth and defines drivers for key digital payment types through 2021.
• Highlights five trends that are changing payments, looking at how disparate factors, such as surprise elections and fraud surges, are sparking change across the ecosystem.

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