Card slots and keypads are being removed from ATMs
Banks are shifting toward ATMs without physical keypads to reduce the risk of card and PIN skimming. In the new system, transactions are performed via mobile apps, QR codes, or NFC.
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Digital transformation and cybersecurity measures in the banking sector are bringing a new model for ATM usage to the forefront. Next-generation ATMs, which lack physical keypads and classic side-screen buttons, are gradually becoming widespread in many countries, including Turkey.
In the system referred to as "cardless and keypadless ATMs," the majority of the cash withdrawal process is handled via the customer's mobile phone. Users determine security verification, account selection, and the amount to be withdrawn within their bank's mobile application. The ATM then completes only the cash payment stage by reading the one-time code, QR data, or contactless verification received from the application.
AIMING TO REDUCE SECURITY RISKS
One of the primary reasons banks are turning to this technology is to reduce the risk of card and PIN theft. In traditional ATMs, skimming devices and hidden cameras that can be placed over the card entry slot or keypad can target user information. In keypadless systems, since PIN entry and confirmation steps are moved to the personal phone screen, the goal is to minimize such risks of physical tampering.
Another result of the new model is the reduction of physical contact. Preparing transactions via the mobile app shortens the time spent at the ATM while also providing advantages in terms of hygiene and ease of access.
Implementation is progressing with different technologies from country to country. While some major banks in the US are deploying NFC-supported keypadless ATM models, dynamic QR code solutions linked to the UPI infrastructure are coming to the fore in India. In Spain and the Netherlands, shared ATM networks are turning to mobile-verified terminals to lower maintenance costs and reduce the need for contact.
In Turkey, it is also observed that banks are expanding their infrastructure for cardless cash withdrawals using QR codes. This method offers customers the opportunity to withdraw cash without using a card or touching physical buttons.