OCBC has launched a service allowing users of the OCBC Pay Anyone app to withdraw cash by scanning QR codes displayed on the OCBC ATM terminal screen. While this technology has been available since at least 2012, it is now poised to gain popularity due to the wide awareness of QR codes in the market. The feature will make ATM cash withdrawals more secure, and other banks are likely to follow the OCBC lead in QR codes.
QR code-based technology is not new to the banking and payments space. NCR developed technology for mobile-based apps to use QR codes for ATM cash withdrawal authentication back in 2012. But at the time mobile banking and payments had not yet reached the market, and consumers were not aware of how QR codes could be used in these spaces. As a result, the NCR system was not adopted.
Since then, QR code mobile banking and payment services have come a long way, especially in Asia Pacific. Due to the cost efficiency of QR code payments, merchants and consumers have been quick to adopt the technology. According to GlobalData’s 2019 Banking and Payments Survey, around 75% of consumers in Singapore own a mobile wallet. In comparison, only 36.2% of consumers in the UK own a mobile wallet. The fact that mobile payment systems in Asia Pacific are mainly QR code-based means consumers have become accustomed to the technology.
Traditional authentication during an ATM cash withdrawal requires both a payment card and PIN, which carries the risk of the PIN and card details being copied by criminals. With OCBC’s new service, the QR code is dynamically generated for each transaction and is matched to the user’s OCBC banking app. This represents a notable security improvement.
Although mobile payments in Singapore and the wider region have gained a lot of traction in the last couple of years, cash use is not going away any time soon. As per GlobalData’s survey almost 90% of consumers in Singapore have taken out cash from an ATM in the past month. Based on OCBC’s own data, there is an average of 3 million ATM withdrawals from their ATM network per month in 2019 – and this figure has not changed compared to 2018. This shows that the new ATM withdrawal process using QR codes will have strong relevance for the market. Other providers are likely to introduce similar functionality.
Latest reports from
Or to search over 50,000 other reports please visitGlobalData Report Store
GlobalData is this website’s parent business intelligence company.