The Cardless Cash Access is the latest enhancement to the FIS Mobile Wallet Platform. Leveraging this technology, users can now withdraw cash from ATMs by using their smartphones. The technology facilitates secured transactions by using quick response barcode (QR code) and a mobile app. To provide this service, Fidelity has collaborated with Paydiant and Diebold Inc (DBD).
The user scans the QR code displayed on the ATM screen with the smartphone camera, and can withdraw cash by selecting the account number. The system generates an e-receipt after the cash is dispensed from the ATM.
Moreover, the FIS Mobile Wallet is readily accessible through most smartphones and can be easily integrated into retailers’ and financial institutions’ existing mobile applications. Smartphone users are only required to download an application from their financial institution or retailer, attach their payment card information and then use the solution for cash withdrawal or purchases.
Additionally, the FIS Mobile Wallet requires no payment credentials such as pin numbers or temporary authorization codes. So these need not be stored on the smartphone or shared with the POS device at any point of the transaction. This makes the whole transaction process secure and more customer friendly.
As more and more financial and banking institutions look to differentiate their services by providing mobile banking, we believe that increasing investment on such technology will boost Fidelity’s client base going forward.
However, we note that Fidelity is a late entrant in the mobile payment market, which is already crowded with big banks and telecom providers with their own products such as ClearXchange, Google’s (GOOG) Wallet, ISIS, Visa and PayPal, thus making it difficult for the company to drive significant growth in the near term.
Moreover, increasing consolidation in the banking sector, a challenging environment for the Payments Solutions business and an uncertain regulatory environment are the other headwinds.
Currently, Fidelity has a Zacks Rank #4 (Sell).
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