According to a Technavio analysis, the market share of cardless Automated Teller Machines (ATMs) will expand to $2.11 billion by 2026, with a Compound Annual Growth Rate (CAGR) of 6.93% from 2021 to 2026. The paper claims that although constraints like rules on contactless payment transactions may impede the industry growth, growing smartphone adoption is significantly propelling the cardless ATM market growth.
In more detail, the report stated that one of the key factors driving the cardless Automated Teller Machine (ATM) market growth is the increased penetration of smartphones.
The rising sales of inexpensive smartphones have increased the penetration of smartphones in emerging nations.
Several functions that are typically only seen in high-end smartphones have been implemented into low-cost devices. Additionally, NFC chips allow smartphones to exchange data with other NFC-enabled devices in cardless ATMs when using the peer-to-peer communication architecture. On the other hand, a smartphone can read QR codes on the ATM screen when performing QR code verification. During the forecast period, these factors are anticipated to fuel the growth of the cardless ATM market globally.
It also mentioned the development of biometric ATMs as one of the major cardless ATM market trends driving the market’s expansion. Mainly, biometric technologies like fingerprint recognition require a user to place his or her finger on the sensor, the report stated.
However, due to the spread of dangerous viruses like avian influenza, Ebola, and swine flu, hygiene worries are growing in many nations. “Vendors in the global cardless ATM market, on the other hand, have shifted their focus to contactless biometrics, which includes 3D facial recognition and retina and iris scanning, to address issues related to the spread of communicable diseases.
“The use of contactless biometrics in cardless ATMs of hospitals and airports where hygiene needs to be maintained are major application areas for contactless biometrics. Therefore, a rise in biometrics in the global cardless ATM market will open new growth opportunities for the vendors in the market in focus.” The report, however, noted that regulations on contactless payment transactions is one of the key factors challenging the cardless ATM market growth.
