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Smartphone app replaces debit card for ATM cash withdrawal

13th Jun 2012
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Sema Fongod of Invoicediscounting.uk.com reports on the latest news about the smartphone becoming a ‘digital wallet’.

The world is becoming a technological village. The Royal Bank of Scotland (RBS) and Natwest have taken smartphone payment technology by the storm by allowing customers to withdraw money from ATM’s via their mobile phones.

Both high street banks have unveiled a smartphone application scheme called GetCash allowing customers who already have the RBS and Natwest banking app to request money without using their banking card.

The new app, available on iPhone, iPad, Blackberry and Android smartphones can be used to request cash and has a withdrawal limit of £100 per day. This is much lower than the £300 limit for all forms of the traditional debit and credit cards.

Unsurprisingly, it’s fair to expect an increase in the withdrawal cap to £300 as this is the latest development in the banking sector’s race to integrate banking into mobile services.

How does it work?

Once the app has been downloaded via the several mobile servers, a password would have to be created. GetCash then sends through a six-digit pin to their phone after the user has made a request for cash. Each code generated remains valid for a maximum of 3 hours.

The withdrawal pin will be hidden until the user touches their screen. Of course this is to prevent fraud and theft as anyone could steal the code. Instead of entering the normal 4-digit card pin which we’re all used to, users will enter the 6-digit pin at a cashpoint for the money to be released.

The app is quite flexible as users can use the scheme as many times a day as they wish, as long as they do not withdraw in excess of £100. The GetCash app is a supplement of an RBS system that allows users with stolen bank cards to withdraw emergency cash from an ATM.

Life made simpler

The mobile scheme is targeted at people who may have accidentally forgotten their card or those who deliberately leave their wallets at home. Sooner or later, we shall all leave our homes as light as possible with just our smartphones in our pockets.

The app is available to about 2.5m RBS and Natwest customers who already have the banking app. RBS revealed that the new scheme can be used to send money to family and friends within seconds – users can text the 6-digit code to someone else to withdraw cash. Teenagers indeed have a reasonable excuse for requesting money from their parents.

Head of mobile at Natwest and RBS, Ben Green also revealed that the new system is a “really simple and secure way to help customers get cash whenever and wherever they need it”. RBS believes the scheme could be suitable for building societies and other banks as well.

Follows other mobile developments

GetCash may be the 1st scheme to withdraw money via a mobile pin but it certainly isn’t the first scheme to withdraw money without using debit or credit cards.

RBS also unveiled a system which allows customers to make charity donations at its more than 8000 UK cash machines. Donations can range from £1-£150 for as many as eight unique charities.

Cash machine operator NCR also unveiled software that allows Apple and Android users to release cash via an ATM by scanning a barcode on their smartphone. In addition, NCR revealed that it plans to develop further mobile payment services this year.

In February, Barclays introduced the Pingit app for its users that enables users to make instant money transfers through their mobile phones.

On the other hand, in April, O2 launched its wallet application that allows customers to buy items directly from their phone as well as make instant money transfers.

All these innovative schemes are the latest developments in a move towards making mobile phones a digital wallet.

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