Contactless ATM: Cash withdrawals made smarter

Find the innovative contactless ATM technology, its working mechanism, benefits, and how it enhances the security and convenience of cash withdrawals
Contactless ATM: Cash withdrawals made smarter
SET UP UPI
5 mins
9 January 2025

What is a contactless ATM?

A contactless ATM is an advanced banking solution that allows customers to withdraw cash and access services without physically inserting a card or touching the ATM keypad. This technology relies on Near Field Communication (NFC), QR codes, or mobile banking apps to initiate and authenticate transactions. Customers can tap their contactless-enabled card, scan a QR code, or use their mobile wallet to complete transactions securely.

Contactless ATMs enhance convenience and safety, reducing the need for physical interaction. This is particularly valuable in today’s health-conscious environment, as it minimises the spread of germs. With robust encryption and advanced authentication methods, contactless ATMs also offer secure transactions. Many banks are upgrading their ATM infrastructure to include contactless features, catering to a tech-savvy customer base and promoting seamless banking experiences.

Bajaj Pay further enhances the contactless ATM experience by enabling seamless transactions through their robust digital payment ecosystem. With Bajaj Pay, users can link their UPI and MPIN credentials to make withdrawals and access ATM services securely without the need for physical interaction. Bajaj Finserv's digital solutions also integrate with contactless banking services, allowing users to enjoy convenience, speed, and safety while managing their finances effortlessly.

How does a contactless ATM work?

FeatureHow It Works
NFC technologyUsers tap their NFC-enabled card or mobile device on the designated area of the ATM to authenticate.
QR code scanningCustomers scan a QR code on the ATM screen using their banking app to initiate the transaction.
Mobile walletPayments are processed via digital wallets linked to the bank account or credit card.


Steps to use a contactless ATM

StepAction
1. Select a contactless ATMLocate an ATM with NFC or QR code support.
2. Authenticate identityTap your card/device on the ATM or scan the QR code via your banking app.
3. Enter transaction detailsInput the desired transaction, such as cash withdrawal, using your mobile device or the ATM screen.
4. Confirm the transactionVerify details and complete the process.
5. Collect cashWithdraw cash or complete the desired service.


Benefits of using a contactless ATM

Enhanced safety: Reduces the need for physical contact with shared surfaces, promoting hygiene.

Convenience: Eliminates the need to carry physical cards or remember PINs.

Speed: Transactions are faster compared to traditional ATM processes.

Secure transactions: Advanced encryption and tokenisation ensure a high level of security.

User-friendly: Accessible for tech-savvy and traditional users alike.

Availability: Widely supported by modern banks and financial institutions.

Top banks offering contactless ATM services

HDFC Bank: Provides NFC-enabled ATMs for seamless withdrawals.

ICICI Bank: Supports QR code-based transactions at select ATMs.

State Bank of India (SBI): Offers contactless options in urban areas.

Axis Bank: Features NFC-based services at flagship ATMs.

Punjab National Bank (PNB): Introduced contactless withdrawals at key locations.

Conclusion

Contactless ATMs are revolutionising the banking experience, offering unparalleled convenience, speed, and safety. They align perfectly with the growing demand for cashless and hygienic solutions.

The Bajaj Pay platform is at the forefront of this digital shift, enabling secure transactions through UPI and MPIN services. With innovative financial tools, Bajaj Finserv empowers users to experience effortless and secure banking solutions.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Bajaj Finserv App for All Your Financial Needs and Goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.

Explore and apply for co-branded credit cards online.

Invest in fixed deposits and mutual funds on the app.

Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.

Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.

Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.

Shop from over 100+ brand partners that offer a diverse range of products and services.

Use specialised tools like EMI calculators, SIP Calculators

Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more

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Frequently asked questions

Do all ATMs support contactless cash?
Contactless ATMs are not universally supported by all ATMs. Many major banks have adopted this technology, allowing customers to withdraw cash without physical contact. However, smaller or older ATMs may not offer this feature, limiting availability for users.

Are contactless ATMs safe?
Contactless ATMs are generally considered safe due to advanced security features like tokenization and two-factor authentication. These measures protect user data and require both a payment device and credentials for transactions, making unauthorized access challenging.

Can I use my mobile wallet for contactless ATM withdrawals?
Yes, mobile wallets can be used for contactless ATM withdrawals at participating banks. Users can link their mobile wallets to their accounts, allowing them to withdraw cash by simply tapping their devices at compatible ATMs.

Do contactless ATMs require PIN verification?
Yes, most contactless ATMs require users to enter a PIN for verification during transactions. This two-factor authentication enhances security by ensuring that only authorized users can access their funds.

What types of payment devices work with contactless ATMs?
Contactless ATMs typically accept various payment devices, including smartphones with digital wallets (like Apple Pay or Google Pay) and contactless cards. These devices communicate via NFC technology for seamless transactions.

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