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JPMorgan Chase is developing a new breed of automated teller machine (ATM) that'll allow customers to withdrawal cash from their account or initiate other transactions without a plastic bank card.
Chase spokesperson Michael Fusco recently told the Associated Press that new and upgraded machines will rely on users' smartphones to authenticate a transaction. Specifically, they'll need to input a code generated by the Chase mobile app to facilitate a transaction. Chase is also raising the withdrawal limit – up to $3,000 during branch hours.
Fusco said future ATM upgrades that rely on NFC technology will make the process even more seamless. Within the next two years, Chase ATMs will also be able to cash checks and pay Chase credit card bills and mortgages.
ATMs will continue to accept traditional plastic cards in the event a user doesn't have their phone on them or isn't interested in the new feature. In time, however, it's likely that ATMs from all banks will do away with card-based transactions entirely as they're quite vulnerable to hackers.
Aside from customer convenience, the decision to pump new technology into the traditional ATM transaction will help the company reduce costs by limiting the number of tellers needed at each branche. Chase said it'll still staff its branches with human tellers to help with specialized transactions, it just won't need as many.
Lead image courtesy Justin Sullivan, Getty Images