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ANZ to roll out tap and PIN ATM in 2015

ANZ Bank is planning to roll out what it calls a 'world first' EMV secure 'tap and PIN' ATM next year, along with a new ANZ FastPay card reader, and a mobile wallet platform.

Australia's third-largest bank, ANZ, has announced that it is working with ATM manufacturer NCR and credit card provider Visa to roll out an EMV (EuroPay, MasterCard, and Visa) secure "tap and PIN" automated teller machine.

The new ATM system, which ANZ is calling a world first, is set to be rolled out in 2015, and will be able to read customers' cards without users having to insert them into the machine.

The ATM technology will, in future, also enable near-field communication (NFC) functionality for authentication and pre-staging transactions at ATMs, using a mobile phone or other portable device.

This will allow customers to program their mobile device with the value and denomination for the cash they want to withdraw.

ANZ CEO Australia Philip Chronican said that the new technology would help cut back on card skimming.

"The growing dependence on technology means customers want simpler and faster ways to bank — but they also want to know their money is secure," said Chronican. "Counterfeit card fraud is a massive issue for the industry and law enforcement that causes significant inconvenience for customers.

"ANZ's 'tap and PIN' solution is a global first, and will go a long way in the fight against card skimmers and to make banking safer and easier," he said.

The company also announced on Wednesday that it will launch an NFC-enabled mobile wallet app and platform in early 2015, which will be linked to customers' existing cards and accounts.

The contactless mobile phone payments system will allow customers to securely transfer and store a single ANZ card or multiple ANZ cards on their phone, and use those cards to transact at contactless terminals.

Chronican said that the Australian market has proven itself more than ready to receive the new service.

"Customers have openly embraced [Visa's] 'PayWave', with around 74 percent of all debit card transactions currently taking place using this technology," said Chronican. "This solution provides our customers with another convenient way to make purchases via their mobile device, wherever contactless cards are accepted."

Additionally, ANZ has announced that it will launch an EMV- and PCI (payment card industry)-compliant card reader device for its FastPay system, which will connect through the audio-jack port in an iOS or Android device.

The new device has been developed in partnership with thumbzup.com, a mobile payments solutions company, and will also be available in the first half of 2015. The device will feature a secure PIN-entry method.

"This is the most secure way to process mobile payments, and is in direct response to feedback from our business customers who told us they wanted a more convenient way to enter card details," said Chronican.

The announcements come as the bank hits the two-year mark in its five-year, AU$1.5 billion " Banking on Australia " investment program.

Earlier this week, on November 3, Westpac revealed that its technology investments are paying off, with the bank rolling out its new online and mobile platform Westpac Live to 2.7 million customers .

Meanwhile, Westpac's contactless ATM partnership with Visa comes as researchers from Newcastle University in the UK claim to have discovered a way to authorise transactions using Visa contactless payment cards beyond the preset spending limit.

If the transaction is specified in a foreign currency, it will proceed at larger amounts, according to the research.