Cardless ATM Market Analysis

Global Cardless ATM Market Overview

Cardless ATM Market Size was valued at USD 2.3 billion in 2022. The Cardless ATM market is projected to grow from USD 2.55 Billion in 2023 to USD 6.02 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.30% during the forecast period (2023 - 2032). Increased smartphone penetration and the emergence of biometric ATMs are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Cardless ATM Market Trends

• Growing advancements in developing ATM infrastructures are driving the market growth

The emergence of biometric ATMs is one of the most important cardless ATM trends driving market growth. The user must initially position their finger on the sensor for biometric technologies such as fingerprint recognition. In numerous nations, however, hygiene concerns are growing due to the spread of infectious diseases such as Ebola, avian influenza, and swine flu. Companies operating in the Cardless ATM Market are shifting focus to contactless biometrics, such as retina and retinal scanning and 3D facial recognition, to combat the spread of communicable diseases. Major application areas for contactless biometrics include cardless ATMs in hospitals and airports where hygiene must be maintained. Consequently, a rise in biometrics in the Cardless ATM Market will create new growth opportunities for market-focused vendors.

Increased smartphone penetration is one of the primary factors fueling the growth of the cardless automated teller machine (ATM) market. There is an increase in smartphone penetration in developing nations due to the rising sales of low-cost smartphones. Low-cost smartphones include several features that are typically found on high-end smartphones. Moreover, in the peer-to-peer communication paradigm, NFC chips allow smartphones to exchange data with other NFC-enabled devices in cardless ATMs. In contrast, a smartphone can read QR codes displayed on an ATM's screen for QR code verification. Thus, such factors are driving the Cardless ATM market revenue.

Cardless ATM Market Segment Insights

Cardless ATM Type Insights

The Cardless ATM Market segmentation, based on type, includes On-site, Off-site, and Others. The on-site segment dominated the market, accounting for 55%-60% of market revenue (78.48 billion). This is because financial institutions and banks plan to focus more on advancing their ATM infrastructure to increase security & easy access and provide customers with an effortless, personalized banking experience by implementing cardless ATM transactional functionalities such as on-site access codes and biometric authentication.

Cardless ATM Technology Insights

Based on Technology, the Cardless ATM Market segmentation includes Near-field Communication (NFC), Quick Response (QR) Codes, and Biometric Verification. The Near-field Communication (NFC) category generated the most income. Near-field communication (NFC) is a near-range technology that lets you transmit data via radio while holding your mobile device near a receiver. At cardless ATMs equipped with NFC technology, a user need only present a mobile device containing an active mobile wallet or banking software to the ATM's NFC receiver. Once the machine verifies the information received, the individual must use the ATM as if they had inserted their debit card.

Cardless ATM End User Insights

Based on End Users, the Cardless ATM Market segmentation includes Bank and Financial Institutions and Independent ATM Deployers. The Bank and Financial Institutions segment dominated the market in 2022. Cardless ATMs can provide significant advantages for banks and financial institutions, allowing them to improve customer service while reducing expenses and enhancing security. Providing cardless ATM services may assist banks and financial institutions in distinguishing themselves from their rivals and attract new consumers seeking more convenient and secure account access methods.

Figure 1: Cardless ATM Market, by End User, 2022 & 2032 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Cardless ATM Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Cardless ATM market area will dominate this market. The United States is North America's most important market for cardless ATMs. The increasing adoption of contactless payment services will aid the growth of the cardless ATM market in North America during the forecast period.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: CARDLESS ATM MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Cardless ATM market accounted for the second-largest market share in 2022. Increased smartphone adoption is a major factor fueling the expansion of the cardless ATM market in this region. Further, the German Cardless ATM market held the largest market share, and the UK Cardless ATM market was the fastest growing market in the European region.

The Asia-Pacific Cardless ATM Market is expected to grow at the fastest CAGR from 2023 to 2032. The prevalence of mobile payment systems such as Alipay and WeChat Pay has led to a significant increase in the use of cardless ATMs in China. Some Chinese institutions, including China Construction Bank and Agricultural Bank of China, have implemented cardless ATM services that permit customers to withdraw cash using their mobile phones. Other countries in the Asia-Pacific region, such as South Korea, Japan, and Australia, have seen an increase in the use of cardless ATMs in recent years since more banks and financial institutions have promoted mobile banking services and strive to enhance the customer experience. Moreover, China’s Cardless ATM market held the largest market share, and the Indian Cardless ATM market was the fastest growing market in the Asia-Pacific region.

Cardless ATM Key Market Players & Competitive Insights

Leading market players are conducting research and development to expand their offering, which will help the Cardless ATM market grow even further. Companies are also undertaking strategic initiatives to expand their global market share, with important market developments including introducing new products, collaborations, joint ventures, expansion, and agreements.

In recent years, the Cardless ATM industry has been through several new advancements, such as the launch of modernized and easy-to-use ATMs. Major Cardless ATM market players include Citigroup Inc., JPMorgan Chase & Co., Fujitsu, Santander Group, GRG Banking, NCR Corporation, HSBC Bank A.S., Wells Fargo, Barclays Bank PLC, and ICICI Bank Ltd.

Citigroup Inc offers a variety of financial services. It offers retail, commercial, and investment banking, securities brokerage, trade and securities services, and wealth management solutions. The group offers a variety of accounts and deposit services, debit and credit cards, banking solutions for small businesses, loans and mortgages, treasury and trade services, and corporate and institutional lending. In addition to asset management, capital market, and securities services, Citigroup provides asset management, capital market, and securities services. The group is in the Americas, Asia-Pacific Europe, the Middle East, and Africa and serves individuals, corporations, small enterprises, institutions, and government entities. Citigroup's headquarters are in New York, United States.

JPMorgan Chase & Co is a financial holding corporation whose subsidiaries provide solutions for consumer and commercial banking, financial transaction processing, investment banking, and asset management. The consumer enterprises include, among others, credit cards, small businesses, auto financing, education financing, and merchant services. Commercial banking services include, among others, middle market banking, corporate credit, equipment financing, and commercial term lending. The company provides commercial banking services such as corporate client banking and banking for government, non-profit organizations, and the healthcare industry. Under the J.P. Morgan and Chase brands, the corporation offers asset management, investment banking, treasury services, private banking, wealth management, US consumer and commercial banking operations, and brokerage services. Europe, Asia-Pacific, the Middle East and Africa, and the Americas are among the regions where the company operates. JPM is based in New York City, New York, United States.

Key Companies in the Cardless ATM market include

• Citigroup Inc


• JPMorgan Chase & Co.


• Fujitsu


• Santander Group


• GRG Banking


• NCR Corporation


• HSBC Bank A.S.


• Wells Fargo


• Barclays Bank PLC


• ICICI Bank Ltd.

Cardless ATM Industry Developments

August 2021: National Australia Bank Limited (NAB) and Microsoft collaborated to develop a proof-of-concept ATM using cloud and artificial intelligence (AI) technology. The Azure Cognitive Services-built cloud application is intended to enhance the customer experience by eliminating the need for physical cards or devices to access currency from ATMs. A client who opts into the service would instead be able to withdraw cash via an ATM using facial recognition technology and a personal identification number, or PIN.

April 2021: NCR Corporation introduced the first interoperable cardless cash withdrawal (ICCW) solution based on the UPI platform. This feature lets consumers withdraw cash via their mobile device and any UPI-enabled application, including BHIM, Paytm, GPay, etc. There is no requirement to swipe or possess a card when using UPI-enabled ATMs. A user must scan the QR code on the screen and authorize cash withdrawals using their mobile device.

January 2022: ICICI Bank announced the launch of a 'Cardless Cash Withdrawal' service at its ATMs. This service enables clients to withdraw cash from the bank's more than 15,000 ATMs by submitting a request through its mobile banking application, iMobile. It is a simple and convenient alternative to using a debit card to withdraw cash. Customers not wanting to carry their debit card may use the 'Cardless Cash Withdrawal' service for self-withdrawal. Both the daily and per-transaction limits have been set at Rs. 20,000.

Cardless ATM Market Segmentation

Cardless ATM Type Outlook

• On-site ATM


• Off-site ATM


• Others

Cardless ATM Technology Outlook

• Near-field Communication (NFC)


• Quick Response (QR) Codes


• Biometric Verification

Cardless ATM End User Outlook

• Bank and Financial Institutions


• Independent ATM Deployer

Cardless ATM Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America