Pin4, a cardless ATM withdrawal system, could expand to some 70,000 U.S. cash machines by the third quarter of 2016, up from approximately 15,000 in the first quarter of 2016, says CEO Richard Witkowski.
The system relies on mobile phones and PINs to enable consumers to withdraw cash, which often are tied to rewards from insurance companies and other organizations. Here is how it works: The sender of cash initiates a Pin4 transaction by providing the recipient’s mobile phone number, a unique four-digit PIN and the transaction amount. The recipient then receives a text message from the sender. The message includes the four-digit code, amount of withdrawal and the location of the nearest Pin4-enabled ATM. At the ATM, the recipient presses the “cardless cash” option, enters his mobile phone number and four-digit PIN provided by the sender, another four-digit code provided by Pin4 and the amount of the transaction to access the cash.
Pin4 already works with a “very large insurance company” that distributes rewards for healthy behavior—for example, going to the gym or undergoing regular readings for diabetes, Witkowski says. Pin4 has yet to sign up U.S. retailers but the technology could enable them to, say, send cash earned via loyalty programs to consumers at ATMs rather than sending checks to customers’ homes, he says. In Europe, several retailers and brands, including some that sell cameras, use Pin4. The company charges a flat fee per transaction, he says.
Pin4 is hardly the only company working to make ATMs more adaptable to an increasingly mobile world. Bank of America and Wells Fargo are reportedly integrating their mobile banking services into their ATMs. Additionally, JPMorgan Chase reportedly wants to roll out ATMs that enable customers to withdraw cash using a code delivered via the bank’s mobile app.