Absa debuts cardless ATM

By Candice Jones, ITWeb online telecoms editor

Johannesburg, 15 Aug 2008

Absa is targeting a large group of potential clients with its new cardless ATM service, CashSend.

According to a company statement, the service is aimed at benefitting both banked and unbanked South Africans.

Research conducted by FinScope, a company that establishes benchmarks for the use of local financial services, shows that while the number of banked South Africans increased by 20% over the 2006/7 financial year, 49% of the population still has no accounts.

Absa's CashSend will allow the bank's customers to electronically transfer funds from an Absa ATM, self-service kiosk, mobile or Internet banking, to either a banked, or unbanked recipient.

How it works

According to Absa retail executive director Venete Klein, a sender can transfer up to R3 000 from an Absa ATM or self-service kiosk, and R1 000 from Absa Mobile and Internet Banking to a recipient.

"The sender will enter the cellphone number of the recipient, as well as select a six-digit access code. A system-generated 10-digit withdrawal number will then be automatically sent to the cellphone number provided. The system also generates a 10-digit number, which is provided to the sender for reference purposes."

The sender then contacts the person who will receive the transfer and provides them with the access code and the amount to be transferred. The recipient uses the code at an Absa ATM to withdraw the amount.

"We have equipped our first ATM screen with an icon, which reads 'CashSend Withdrawal'. All the recipient needs to do is press this icon, which will automatically activate the ATM for a CashSend transaction," says Klein.

All or nothing

She says the withdrawal amount must be requested in full, because the service does not allow partial withdrawals. "Unclaimed funds are automatically returned to the sender's account after a period of 30 days."

Klein says there are a number of potential users who could benefit from the service. Customers who may have lost a card can have money transferred through to them, she explains. "Employers can send money to domestic workers, or parents to their children at university or boarding school, breadwinners can send money to family members in other provinces or by tourists who enter SA."

The bank is adamant the service is aligned to customer needs. "We are proud to be the first bank on the continent to offer cardless ATM transactions. In fact, only a few countries around the world have banks which offer this kind of service."