Now, you won't just be able to pay for goods and services via your smartphone, you'll also be able to withdraw cash with it. JPMorgan Chase is ready to roll out the next generation of ATMs across the country, where customers can access their money directly using their smartphones as opposed to plastic debit or credit cards.
The new Chase ATM machines have been receiving a trial run in 156 New York City branches, where their apparent success has led to the announced nationwide rollout. A dedicated app allows Chase bankers to log in to an ATM without the use of a card in the upgraded machines, which also offer some other highly-desirable improvements over the older versions.
One of the most frustrating aspects of using an ATM is the limited ability to take out the specific amount of cash one desires. Most ATMs currently only allow withdrawals in multiples of $20, because the machines are only equipped to spew out twenties. A customer needing $25 in cash is forced to withdraw $40, which may not seem like a big deal but can wreak havoc on accounts with limited funds that are also used to pay bills via automatic withdrawals or payments. Big spenders, meanwhile, who withdraw hundreds at a time, are forced to carry unwieldy wads of twenties.
The new machines will finally alleviate both of those problems by allowing customers to withdraw bills in $1, $5, $20 and $100 denominations. In addition, the withdrawal limit, now standing at $500 in most locations other than New York City, where it caps out at $1,000, will be increased to $3,000 in ATMs located within Chase branches.
"We analyzed withdrawals occurring at our teller lines and found that 90 to 95 percent of withdrawals are under $3,000, so setting the limit there would allow the devices to serve the vast majority of our customers," said JPMorgan spokesman Michael Fusco.
Besides making things easier for customers, the move will also save the company money. Teller transactions are estimated to cost Chase much more than those conducted through an ATM or app.