Barclays pilots contactless cash withdrawals

Barclays bank is piloting technology to enable customers to withdraw cash by just tapping their smartphone or contactless card on a reader

Barclays bank customers in the UK can withdraw cash by tapping an Android smartphone or contactless card on a machine in the branch as part of a pilot.

The technology is being tried out in the north of England before being introduced in 180 branches across the country.

Customers will be able to use their mobile app to select the amount they want and enter their PIN, before tapping it on an in-branch machine to get the cash.

Customers can also withdraw cash without logging into the mobile app by tapping their smartphone or contactless card on the machine and then entering their PIN.

Barclays said this makes withdrawing cash more secure because it removes the risk of magnetic card skimming and distraction fraud, as the device never needs to leave your hand.

Ashok Vaswani, CEO at Barclays UK, said the bank is responding to demand from customers for more mobile phone-based services.

“Our customers now expect to be able to use their smartphone to make their everyday purchases. We want taking out cash to be just as easy. With contactless cash, customers can quickly and securely take out money with just a tap of their smartphone – a first for the UK,” said Vaswani.

Most consumers use their mobile phones to bank and the volume of contactless transactions in the UK is increasing fast.

Read more about Barclays mobile developments

According to the latest research from Visa, three-quarters (74%) of the UK’s consumers use mobile devices to bank. The Visa research also found that 58% of people in the UK used contactless cards in 2016, compared with 20% in 2015.

Across Europe, Visa found that 54% of consumers regularly use a mobile device to make payments for a range of activities, up from just 18% last year. Only 12% said they had never used a mobile device to make payments and had no plans to do so, compared with 38% last year.

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