PrivatBank cuts ATM costs with NFC

PrivatBank's Black Box NFC ATM
HEADLESS: PrivatBank’s Black Box ATM dispenses with a screen and keyboard, instead delegating display and input functions to the user’s NFC phone

Ukraine-based PrivatBank has developed an ATM that uses NFC to “significantly reduce” product costs by eliminating the need to include a pin pad, screen and other user interface features.

“The contactless ATMs are cheaper than ordinary ATMs because we are removing half of the inside of the machine and thanks to the open software that we use,” PrivatBank’s Alexander Vityaz told NFC World. “We decided to design the machines to make it easier to demonstrate and explain why we need NFC technology.”

The headless ATMs work in conjunction with the bank’s Privat24 Android app, which is linked to customers’ cards and account. To withdraw cash, they tap their NFC phone to the ATM and enter on their phone the amount they wish to withdraw along with their PIN.

“There is a smartphone with an NFC module inside the ATM,” Vityaz explained. “The machine communicates with the consumer’s smartphone via NFC, and in the first version we implemented MasterCard PayPass standards.”

A working prototype of the Black Box ATM is currently in use at the bank’s offices and the bank plans to put the new design into production during the first quarter of 2014.

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3 comments on this article

  1. We believe the La Caixa and other offerings are regular ATMs with NFC added, which is fine but not the point this addresses.

    However, we haven’t come across the Itautec headless ATM before, and that looks really cool. The video is well worth a watch.

    I’m all in favour of anything which means I don’t have to physically touch an ATM 🙂

    1. I still believe that La Caixa offering is better.

      It allow to serve existing customers (with magnetic stripe and chip cards), while also allow geeks to test-drive new tech.

      Headless NFC-only ATM is not customer friendly, as it leave no choice to customer, but force them to obtain, configure and use NFC-enabled devices.
      What if battery is dead? No money and no phone = no fun 😉

      Contact Privatbank and ask how many customers already have software and hardware needed for their headless “black box”. I am sure it will be very small percentage. In same time – nearly 100% of customers have Visa/MC card with magnetic stripe. But “black box” will not be serving them.

      What is better:

      Serve 100% of customers with 2x cost of ATM vs. serve <5% of customers but get saving on hardware? 😉

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