Paydiant, a provider of a white-label mobile payments, offer redemption, loyalty and cardless cash access platform for banks and retailers, has announced the grant of a new patent from the U.S Patent and Trademark Office (USPTO).
The solution enables consumers to use their smartphones, instead of their debit or credit cards, to withdraw cash from ATMs, enhancing the consumer mobile banking experience while also supporting financial institution loyalty.
As described in the patent, an ATM code or token is obtained by a mobile device and used to associate an end user and their payment accounts to a transaction at an ATM. Users can pre-stage cash withdrawals on their smartphone and then identify themselves at the ATM by scanning the transaction specific QR code that signals the ATM to dispense cash via an encrypted connection to the cloud.
“As mobile technology proliferates, banks are looking for new ways to leverage that touch point with their customers — and it goes way beyond making payments,” commented Paydiant co-founder, Kevin Laracey. “This patent describes a more convenient and secure way for consumers to conduct a very common interaction with their banks. It adds value for the consumer, extends the bank’s relationship with their customers and encourages customer loyalty. That’s the real opportunity in mobile.”
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