JPMorgan Chase installs e-ATMs which render cards redundant
JPMorgan Chase comes up with yet another innovative move in the form of e-ATMs that require only an app to withdraw cash. Needless to say, this facility will only be available for the Chase bankers who can now slip into the habit of moving around without the little piece of magnetic strip.
The highlight of this service would be the availability of different denominations like $1, $5, $20, and $100 bills, with a withdrawal limit of $3000, as represented by Mail Online. Normally, the New York ATMs have a limit of $1000 with some allowing only $500 as a per-day limit. The machines will also allow encashment of checks and allow payments for Chase credit cards or mortgage bills.
The bank has put in quite a bit of effort in terms of research and testing the new ATMs. As per NBC Chicago, JPMorgan spokesperson Michael Fusco has stated, "We analyzed withdrawals occurring at our teller lines and found that 90 to 95 percent of withdrawals are under $3,000, so setting the limit there would allow the devices to serve the vast majority of our customers." Out of the 2100 branches in New York City, Chase has been testing the new features in 156 city ATMs since last year.
This move seemed like the natural progression as transaction apps like PayPal's Venmo and Jack Dorsey's Square become more and more popular. As Greg McBride, an analyst at Bankrate.com, puts it, "Ultimately, banks have to continue to innovate or somebody else is going to eat their lunch."
Apparently the banks have something to gain in the process as well. A deposit with the teller costs the bank 65 cents and one with an ATM, 8 cents. The push towards mobile banking will save the bank money as a deposit through a mobile app amounts to only 3 cents.
The 'cardless' ATMs will be rolled out in the form of brand new ATMs along with some current machines fitted with the required upgradation. There are plans to provide further upgrades that will 'enable customers to use their phone's near-field wireless communication feature to access their accounts, similar to Apple Pay and Samsung Pay capabilities,' according to Consumerist.
It is said that Chase is planning to phase out their tellers once the new ATMs are in place which will reduce face-to-face interactions to a great extent. However, this news was dismissed by their spokesperson who said that tellers will now be used to handle high-profile customer profiles.
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