Smartphones Will Replace ATM Card in the Nearest Future, Wells Fargo Takes the First Step

You may no longer need to carry a special case that holds all of your chip-embedded bank cards when you go to the ATM to withdraw your money next time. Although Apple and Samsung have already implemented a card-less payment system through their app, Apple Pay and Samsung Pay, this clever method will be a norm to our daily life soon.

Starting Monday this week, Wells Fargo & Co. will allow depositors to withdraw their money at any branded ATM across the U.S, using only their smartphone. This is seen as the latest sign that the banks are moving away from the traditional brick and mortar banking system. According to Wells Fargo's head of ATM and Branch Banking, Jonathan Velline, the bank decided to integrate the smartphone technology after scouting the idea in selected locations across the country.

Previously, JPMorgan Chase & Co. together with Bank of America Corp have announced the digital upgrades to their ATM systems. However, Wells Fargo is the first American Bank to roll out the cardless ATM across its entire network, according to Reuters.

The move comes as Wells Fargo has been trying to woo back customers following a fake-accounts scandal in which bank employees created as many as two million bogus customer accounts to hit sales targets. That led to exits of Wells executives and a revamp of the bank's policies.

With the new cardless ATM, in order to withdraw money, customers need to enter an eight-digit code, which can be retrieved from the bank's smartphone app. The eight digit code serves as the password, which is similar method when buying online or making payments through debit or credit card.

The upgraded ATM will still accept cards. Also, the card is still needed to open the locked security doors at some Wells Fargo branches that have such door, in order to gain access to the after-hours ATM.