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The cardless atm market size is forecast to increase by USD 1.92 billion, at a CAGR of 6.36% between 2023 and 2028. The market is experiencing substantial growth, driven by several key factors. Firstly, there is a significant increase in smartphone penetration globally, facilitating easier access to digital payment platforms. This has led to a widespread adoption of contactless payments and transactions, driven by consumer preference for convenience and safety. Secondly, rising government initiatives aimed at promoting digital payments, including incentives and infrastructure development, are further accelerating market expansion. These initiatives not only enhance financial inclusion but also streamline economic transactions. Together, these factors underscore a dynamic shift towards digital payment solutions, reshaping consumer behavior and merchant practices alike. The digital payments market is poised for continued growth, driven by technological advancements and supportive regulatory environments fostering a cashless economy.
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The market is witnessing significant growth as more financial institutions and tech companies adopt contactless technology for cash withdrawals and deposits. ATMs are no longer just physical machines for cash transactions; they have evolved into digital platforms offering various services through mobile apps. Transactions at Cardless ATMs can be initiated using biometrics, passcodes, or mobile apps. NFC technology and QR code scanning enable contactless transactions, enhancing user experience. ATM manufacturers, technology providers, and mobile app developers are collaborating to offer innovative solutions. Security is a major concern in the Cardless ATM market, with geolocation services and fraud detection systems being implemented to ensure safety.
Further, interoperability between different banking apps and ATMs is also crucial for customer convenience. Leading players in the market include NCR Corporation, focusing on enhancing the user experience through advanced technology. Startups are also entering the market, bringing competition and innovation. Banks are integrating Cardless ATMs into their banking apps to offer teller services, cash deposits, and balance checks. Despite the benefits, challenges such as technical complexities and regulatory issues persist. However, the convenience and security offered by Cardless ATMs make them a preferred choice for customers. The market is expected to continue growing, offering opportunities for both established players and new entrants.
Increased penetration of smartphones is notably driving market growth. The global market for Cardless ATM transactions is witnessing significant growth, driven by the increasing popularity of smart hardware such as NFC-enabled devices and QR codes. Companies like NEXGO and GUOXIN MICRO are leading this innovation with their advanced solutions. In India, for instance, the Unified Payments Interface (UPI) and various payment systems like Empays Payment and IMT Payment System have facilitated cashless transactions through smartphones. Major financial institutions such as Mastercard are also embracing contactless payment systems to enhance security and convenience.
Further, the integration of digital currency, Blockchain, Artificial Intelligence, IoT, and communication technologies like Azure Cognitive Services and facial recognition is further revolutionizing the ATM industry. Geolocation services and PINless transactions are also gaining traction, aiming to eliminate ATM fraud. Chinese smartphone manufacturers, including Xiaomi Corp., Guangdong Oppo Mobile Telecommunications Corp., Ltd, and OnePlus Technology Co., Ltd, are playing a crucial role in expanding the market by offering affordable smartphones, and making digital transactions more accessible to a broader population. Thus, such factors are driving the growth of the market during the forecast period.
The emergence of biometric ATMs is the key trend in the market. The market is witnessing significant growth due to the integration of advanced technologies such as NEXGO and GUOXIN MICRO's smart hardware. These innovations enable contactless payment methods like UPI, NFC-enabled smartphones, and QR codes for cashless transactions. Biometric technologies, including facial recognition, are increasingly being used in ATMs for multi-factor authentication. This technology uses single or multiple factors such as finger, iris, and face scanning for secure transactions. However, concerns over hygiene and potential ATM fraud persist, leading to the exploration of alternative authentication methods. For instance, Empays Payment and IMT Payment System are integrating Mastercard's contactless payment solutions to minimize physical contact.
Furthermore, the adoption of digital currency, blockchain, artificial intelligence, IoT, and geolocation services is transforming the ATM landscape. Azure Cognitive Services, for example, offer facial recognition capabilities to enhance security, while NAB is testing ATMs with PINless transactions. These advancements aim to provide a seamless, secure, and hygienic banking experience for customers. Thus, such trends will shape the growth of the market during the forecast period.
Regulations on contactless payment transactions are the major challenge that affects the growth of the market. Cardless ATMs, facilitated by smart hardware from companies like NEXGO and GUOXIN MICRO, enable contactless transactions using smartphones and NFC-enabled devices. However, there are limitations to these transactions, with most geographical regions imposing a daily maximum limit on cash withdrawals. For instance, HDFC Bank Ltd. permits a maximum of approximately USD 127 per day, while ICICI Bank Ltd. allows up to USD254. These restrictions are imposed by central banks to prevent fraud, as cardless payment devices are susceptible to unauthorized access when ATMs are in close proximity.
Additionally, contactless payment methods such as UPI, Empays Payment, and IMT Payment System, as well as digital currencies, are gaining popularity. Mastercard and other financial institutions are integrating advanced technologies like blockchain, artificial intelligence, IoT, facial recognition, and geolocation services through Azure Cognitive Services to enhance security and user experience. Despite these advancements, ensuring the security of cardless transactions remains a significant challenge. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Citigroup Inc. - The company offers cardless ATM solutions such as Cardless Cash Withdrawal.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The offsite ATM segment is estimated to witness significant growth during the forecast period.The global cardless ATM market primarily consists of transactions conducted at offsite Automated Teller Machines (ATMs) that do not require the use of traditional plastic cards. Offsite ATMs, which account for the largest market share, are installed outside the premises of banks and are often situated in high-traffic areas such as transportation hubs, educational institutions, and marketplaces. Users can perform cash withdrawals and deposits, check balances, and initiate contactless transactions through mobile apps or biometric authentication methods, such as passcodes or fingerprint scanning. Technology providers, ATM manufacturers, mobile app developers, and IoT technologies collaborate to offer advanced features, including NFC, QR code scanning, and data analysis tools, to enhance the user experience.
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The offsite ATM segment was the largest and was valued at USD 2.01 billion in 2018. Startups and banking institutions are increasingly investing in cardless ATMs to expand mobile banking participation and provide teller service alternatives. However, security concerns, including skimming and data breaches, necessitate robust data security measures and interoperability between different banking apps and ATM systems. Competitors in the market include technology vendors, systems integrators, OEMs, and IT infrastructure financing organizations, such as Huawei Cloud. The market's growth is driven by the increasing adoption of smart ATMs, the convenience they offer end-users, and the integration of various technologies, including mobile banking and IoT. Despite the challenges, the future of cardless ATMs looks promising, as they offer a more secure, convenient, and efficient banking experience for customers.
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North America is estimated to contribute 48% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is witnessing significant advancements as technology providers, ATM manufacturers, and mobile app developers collaborate to offer seamless transaction experiences. Biometrics, passcodes, and QR code scanning are becoming the new norm for cash withdrawals and deposits, replacing traditional card usage. This shift towards cardless transactions enhances user experience and reduces the risk of skimming and fraud.
Additionally, startups and banking institutions are investing in NFC and contactless technologies to build interoperable systems, ensuring customers can access their balances and banking services through various channels. Security is a top priority, with data analysis tools and IT infrastructure safeguards to prevent data breaches and data security threats. Smart ATMs equipped with IoT technologies and advanced systems integrators and technology vendors are driving innovation in the market. Huawei Cloud and other technology giants are partnering with financial institutions to provide cloud services, financing, and OEM solutions. Competitors are focusing on improving user experience, enhancing security, and ensuring compatibility with various banking apps and teller services. Overall, the Cardless ATM market is evolving rapidly, offering new opportunities and challenges for all stakeholders.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is revolutionizing the way customers perform cash transactions without the need for traditional plastic cards. This innovative technology enables users to withdraw cash, make deposits, and check balances using biometrics, passcodes, or mobile apps. ATM manufacturers and technology providers collaborate to develop smart ATMs equipped with NFC, contactless transactions, QR code scanning, and IoT technologies. Mobile app developers play a crucial role in creating banking apps that facilitate cardless transactions, enhancing user experience. Security is a top priority in the market, with biometric authentication and data security measures ensuring fraud protection. Interoperability between various banking apps and ATMs is essential for seamless transactions. Competitors in the market include Huawei Cloud, OEMs, systems integrators, and technology vendors. The market growth is driven by increasing mobile banking participation, improved IT infrastructure, and financing from various sources. End-users benefit from the convenience of cardless transactions, faster cash withdrawals, and reduced dependency on teller services. However, data breaches and data security concerns remain challenges for the market. In conclusion, the market is transforming the banking industry, offering customers a more secure, efficient, and convenient way to manage their finances.
Market Scope |
|
Report Coverage |
Details |
Page number |
140 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.36% |
Market Growth 2024-2028 |
USD 1.92 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.58 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 48% |
Key countries |
US, China, Germany, UK, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Banco Santander SA, Barclays Bank Plc, Citigroup Inc., Commonwealth Bank of Australia, Diebold Nixdorf Inc., Fifth Third Bancorp, Fujitsu Ltd., GRGBanking, HDFC Bank Ltd., HSBC Holdings Plc, Hyosung Corp., ICICI Bank Ltd., JPMorgan Chase and Co., Kotak Mahindra Bank Ltd., NCR Voyix Corp., State Bank of India, Turk Ekonomi Bank AS, and Wells Fargo and Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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