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Contactless cash cards and the future of ATMs



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paragon aug 19

ATMarketplace, a well-known digital resource for all parties interested in ATMs and their supporting payments networks, recently published a post by Steve Gilde, Director of Global Product Marketing, Paragon Application Systems. Steve is well known to the NonStop community having been involved with payments processing for much of the past three plus decades. He has an extensive knowledge of payments systems running on NonStop systems and is always quick to highlight trends occurring within the financial industry and at Paragon Application Systems this is particularly of interest as automated continuous testing of today’s ATMs and their supporting networks is at the heart of Paragon’s business.

In the July 16, 2019, post to ATMmarketplace, Contactless cash cards and the future of ATMs, Steve introduces the topic with the opening observation of how, “Cash offers certain benefits, such as security. In an era where major data breaches occur on a regular basis, cash is comforting.” But is the love affair we have with cash an era that is about to end? History is rich with illustrations of how something that comes along and is better than what came before can quickly capture the attention of everyone. And in short order! This may very well prove to be the case following the introduction or, should we say, the reintroduction of today’s contactless cards for processing our financial transactions.

Contactless cards are EMV chip cards that use near-field communication for proximity payments. You don’t have to insert your credit card chip when you make a purchase. You simply tap the card instead. 

However, the concept isn’t new. Think back to the open stored value card experiments of the 1990s. While the idea didn’t take off then, the timing and technology are finally ready to make this concept a reality. A contactless “cash card” that delivers tap-and-go convenience, along with the enhanced security and anonymity of cash, will be beneficial for just about everybody.

So, what about the future then of the humble ATM? According to Steve’s observations there should be no concerns on this score.

The ATM can shift from dispersing notes to loading value on stored value cards. This would allow consumers to spend e-dollars just like they spend paper bills, only faster and easier, with no loose change in their pockets. 

And yes, as Steve concludes, we had better get used to change, even with cash.

A quick review of payment data from the past 50 years clearly indicates that the general population has embraced electronic transactions of all sorts — credit, debit, prepaid, phones and more. The trend will only continue.

If you missed reading this post by Steve, you can click on the hyperlink embedded above or cut and past the following link into your browser:

And if this is a subject you would like to discuss with us here at Paragon, we welcome you calls and are only too happy to address any topics of interest that you may have.

Written by the Paragon Team


Steve Gilde | Director, Global Product Marketing | Paragon Application Systems

Direct: +1 919 741 4422 | Mobile: +1 404 844 7893