Contactless Adoption at the ATM
Publication Date: May 2024
Executive Summary
In the past few years, contactless payment using Near Field Communication (NFC)-enabled EMV chip cards and mobile devices has emerged as a popular method for consumers to make and retailers to accept transactions securely and conveniently. Contactless technology provides an excellent opportunity for ATM owners to offer improved convenience for consumers with the same level of transaction security and integrity as contact EMV transactions. A contactless ATM platform also delivers the ability to implement advanced ATM features and protects against traditional card skimming. This white paper provides information for ATM owners who are planning to implement contactless EMV; it does not cover other forms of touchless payments (e.g., using QR codes).
When adding contactless to ATMs, ATM owners need to understand the differences between the transaction types. While contact EMV transactions require a payment card to be inserted into a terminal, contactless EMV transactions use radio frequencies (RF) to transmit payment information wirelessly. While both rely on technical EMV specifications that are defined and managed by EMVCo, they use different communication protocols and different transaction processes. In addition, transactions from NFC-enabled mobile devices (e.g., mobile phone, wearable) use a tokenized primary account number (PAN), replacing the PAN with a surrogate number.
Consumers are already using contactless payment at many retailers and are familiar with the EMV Contactless Symbol that indicates contactless acceptance. ATM owners should include the symbol on their ATMs when contactless EMV payment cards and NFC-enabled mobile devices are accepted and ensure the placement is in the area with the strongest signal.
As with all new payment technologies, implementers will find challenges with upgrading infrastructure, ensuring security, complying with industry standards and regulations, integrating with legacy systems, and testing the system end-to-end. To ensure interoperability, EMVCo and the payment networks have rigorous certification programs for both payment system components and end-to-end testing. In addition, ATM owners should evaluate the differences in software and hardware when choosing suppliers and are advised to establish collaborative relationships with trusted vendors who can provide guidance and support through implementation.
Through careful planning and implementation with trusted partners, ATM owners can provide consumers with convenient, secure contactless EMV transactions and a better customer experience.
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