Fidelity Eases Cash Withdrawal - Analyst Blog
March 22 2013 - 7:00AM
Zacks
Fidelity National
Information Services (FIS) announced that its new Cardless
Cash Access solution has been chosen by Wintrust Financial
Corp (WTFC).
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).
DIEBOLD INC (DBD): Free Stock Analysis Report
FIDELITY NAT IN (FIS): Free Stock Analysis Report
GOOGLE INC-CL A (GOOG): Free Stock Analysis Report
WINTRUST FINL (WTFC): Free Stock Analysis Report
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