Contactless ATMs introduced letting customers withdraw cash with a tap

Bank customers in across the country can now withdraw cash from ATMs without inserting their cards, as contactless or Near Field Communication (NFC) technology makes its debut in the country’s ATM network.

Private lender City Bank has introduced the service, allowing customers to tap an NFC-enabled card on a designated area of the ATM to withdraw or deposit cash and perform other banking transactions.

The bank says the service is available to cardholders of other banks as well, provided their cards support NFC technology.

Unlike conventional ATMs, where cards must be inserted into a slot, the new system eliminates the risk of cards being retained by the machine because of technical glitches, power failures or card-reader problems. Customers simply tap their cards, enter their PIN and complete the transaction.

City Bank officials say the contactless system also offers stronger protection against certain forms of card fraud. Conventional ATM card slots can be targeted with skimming devices designed to capture information from magnetic stripes. Because NFC cards communicate wirelessly with the terminal, the technology significantly reduces exposure to such skimming risks, according to the bank.

The system also eliminates physical wear caused by repeatedly inserting cards into ATM slots, potentially extending the life of the card’s chip and magnetic stripe.

Arup Haider, deputy managing director of City Bank, said the technology was introduced to make ATM transactions faster, easier and more convenient for customers.

The bank has already installed around 70 to 80 NFC-enabled ATMs across Bangladesh and plans to expand the network gradually as new machines are installed and existing terminals are upgraded.

The service is also accessible to customers of other banks through the National Payment Switch Bangladesh (NPSB) network. However, non-City Bank customers using the service will be charged an additional 15 taka per transaction.

Contactless ATM technology is already widely used in several international markets. Its introduction in Bangladesh marks another step toward reducing physical-card dependence and modernizing the country’s retail banking experience.