Cardless Payment/Cardless Withdrawal: How It Works

A cardless payment is one in which a person withdraws cash from the ATM without using a card. All the recipient needs is a mobile phone number. Once a transfer is done, a secure code is sent to the recipient’s phone number, the recipient can then take this code to an ATM machine, select the cardless withdrawal option, follow the prompts and cash out.

Cardless payment allows bank customers to make cash withdrawals from an ATM without the use of a card. The benefits are immediately clear. For example, should you forget your ATM card at home, you are still able to make a withdrawal. Which is why, this technology is also called cardless withdrawal.

In some countries, cardless payment also lets a bank account holder to send cash to someone who does not have a bank account. All the recipient needs is a mobile number. Businesses also use this to pay staff salaries and wages.

How Cardless Payment/Cardless Withdrawal Works

In principle, it works via USSD, though some banks have implemented it to work only via their mobile apps. In our opinion, this defeats the purpose, but then perhaps also offers more security to users.

Here is the generic process (specifics may differ from bank to bank).

  1. From your phone, dial a code unique to your bank or send an SMS to a USSD number and follow instructions.
  2. You are sent a code/PIN for use to make the withdrawal
  3. At the ATM, select the “Cardless Withdrawal” or “Paycode Cashout” option
  4. Enter the Amount you want to withdraw and press the OK button.
  5. You are required to enter the code/PIN that was generated for you.
  6. the ATM will dispense the cash
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Take note that depending on how your bank has implemented the service, the cardless withdrawal process may be slightly different from how it is presented above.

If your bank allows you to make cardless payments to others, you will be able to do so by providing the mobile number, name and address of the recipient to the bank. The withdrawal code/PIN will be sent to the recipient’s mobile number and they can use steps 3 to 6 above to make their cardless withdrawal.

Will ATMs Become The Banks Of The Future?

Possibly. Consider the sheer amount of transactions you can carry out at an ATM already. You can transfer funds, link your BVN, make cardless withdrawals, and even deposit cash into your bank account.

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One thought on “Cardless Payment/Cardless Withdrawal: How It Works

  • June 12, 2018 at 10:38 am
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    I’ve thought of testing this feature, maybe with some loose change, before the Nigerian system messes me up big time.

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