What are cardless cash ATMs and how do they work?

Some banks have found a way to make accessing your cash even easier. With secure apps installed on your mobile phone, you can access your digital wallet to withdraw money from a cardless ATM without using your physical debit card. Your phone is already at your fingertips—now your cash will be too.

What is a cardless ATM and how does it work?

A cardless ATM allows you to withdraw cash without using a physical debit card. Instead of inserting a card, you access the ATM by using your smartphone or a one-time code provided by your bank. This is beneficial if you’re on a run, at the beach, at an amusement park or anywhere else you don’t want to carry a card. You can even share your code with friends or family members so they can withdraw money when you’re not there.

An example of the most similar technology currently available in Canada is the RBC NFC-enabled ATMs, which allow customers to withdraw cash by tapping their bank card at the ATM rather than inserting it into the machine. This technology in Canada still requires a card and doesn’t support Apple Pay or Google Pay.

Cardless app-generated codes vs. near-field communication

There are two ways your phone may connect with a cardless ATM: through app-generated codes or near-field communication (NFC).

App-generated codes are typically QR codes, although they can be a series of numbers. If your bank uses this type of technology, you request a withdrawal in your mobile app and then scan or enter the code once you get to the ATM. Then, the ATM verifies your identity and authenticates your transaction.

Some ATMs use NFC to conduct cardless transactions. With this type of cardless ATM, you tap your phone against the ATM’s contactless symbol and your phone’s digital wallet pulls up. From there, you select which card you want to use from your wallet and enter your PIN. Then, the ATM authenticates your transaction.

How extensive is the cardless ATM network?

The cardless ATM network in Canada is currently nonexistent. There are some ATMs that support NFC transactions, but you still need to use your physical card.

However, Market Research Future projects the cardless ATM industry in Canada to grow at a compounded annual rate of 11.70% from 2025 to 2035, so many banks plan to modernize their ATM infrastructure to meet this demand.

It requires a significant investment, though, and banks must also navigate strict security regulations, compliance requirements and ensure consumer trust before introducing cardless ATMs, which is why the rollout has been slow in Canada.

What are the benefits of using cardless ATMs?

• The convenience of travelling light. With cardless ATMs, you have the ability to leave your wallet behind when the occasion calls for it.
• In cases of emergencies. You can continue to access your cash even if you’ve left your wallet at home.
• You can share money with your trusted family and friends. Cardless ATMs make it easier to give family members limited access to your account when they need it. Rather than paying for extra debit cards or worrying about how much they withdraw, you can control their spending by using a cardless ATM.
• No additional costs. As long as you’re using cardless ATMs in your bank’s network, you shouldn’t be charged any additional fees to withdraw cash.
• Increased security. Cardless transactions typically use a one-time code, QR code or mobile wallet authentication, reducing the risk of card skimming or fraud.

What are the drawbacks of using cardless ATMs?

• Only at select banks. Right now, only select banks in the US offer cardless transactions with their accounts. We’re waiting for this technology to launch Canada-wide.
• Relies on the ATM’s network. If the ATM network is down, you won’t be able to use the code or your smartphone to withdraw money until it’s up and running again.
• Cardless ATM fraud. If someone gets a hold of your bank’s login credentials and PIN, they can connect your account to their phone and withdraw money without needing your physical debit card.

Security tips when using cardless ATMs

With any product or device that provides access to your money, either on or offline, you need to be careful about its security. Here are some tips to help protect your money when using cardless ATMs:

• Protect your online banking details. Never share the password to your online bank account. With the password, people could gain access to your card details and make withdrawals without your consent.
• Monitor suspicious transactions on your account. Although banks take precautions to protect your information, there’s always the possibility of a hack. If you notice unauthorized withdrawals from your account using a cardless ATM, notify the bank immediately.
• Keep your phone secure. Use a strong passcode, fingerprint or facial recognition to prevent unauthorized access to your banking app.
• Avoid public Wi-Fi. When accessing your banking app to generate codes, use a secure mobile network instead of unsecured public Wi-Fi.

Bottom line

While the technology exists to be able to withdraw money from an ATM without using a debit card, it isn’t widely available in Canada just yet. Although using your smartphone for ATM withdrawals comes with greater convenience and ease of use, there are still legitimate limitations and security issues to watch out for.

Interested in looking into a bank account with a traditional debit card? Check out our guide here.

Earn Interest

EQ Bank Personal Account

Go to site

• Earn up to 3% interest
• No monthly account fee
• Free ATM withdrawals across Canada
• No transaction fees
• No e-Transfer fees

Credit Union

Coast Capital Free Chequing, Free Debit, and More Account

Go to site

• Earn a $350 welcome bonus
• No monthly fee
• Unlimited day-to-day transactions
• Overdraft protection on approved credit

Digital Bank

Tangerine No-Fee Daily Chequing Account

Go to site

• Earn up to $250
• Unlimited day-to-day transactions
• Free Interac e-Transfers
• No monthly fee or minimum balance requirement
• First chequebook is free
• Fee-free access to over 3,500 Scotiabank ATMs

BMO Performance Chequing Account

• Earn up to $1,100 in cash bonuses from BMO
• Exclusive: Get an extra $175 reward from Finder + a $25 BMO referral boost
• Get up to 5.00% promo interest with a linked savings account

Go to site

Frequently asked questions cardless ATMs

• How do banks ensure cardless cash transactions are secure?

  Generally, cardless ATM withdrawals can be even more secure than using a card. That's because you not only have to enter a PIN as you normally would with a card, but your banking app will usually require additional security measures for access, like a fingerprint scan.

  It's a good idea to double check your security settings. Test the relevant app and check what security measures are in place to ensure that no one else can use the app to gain access to your account.

• How easy is it to use a cardless ATM?

  It's hard to beat the ease of sliding a card into a machine, entering a code and pulling out your cash. However, using an app is easy in its own way because you don't have to rummage through a stuffed wallet to find your card. Although not yet enabled for cardless ATM transactions, you can compare traditional mobile banking apps here.

• Is a time limit applied for cardless transactions?

  Banks may impose a time limit as an added security measure. You'll have to check your own transactions to see how long the code is valid for after receiving it. Some banks only keep the code valid for 30 minutes.

Written by

Chelsey Hurst

Growth Manager (Banking & Investments)

Add to Preferred Sources

Chelsey Hurst is a Growth Manager at Finder, specializing in banking and investments. She loves empowering people to avoid financial pitfalls and make better decisions with their money. Chelsey has a Bachelor of Science from Redeemer University, a Master of Science from McMaster University, and has won multiple awards for research communication. In her spare time, Chelsey enjoys cooking and taking long walks in nature. See full bio

Chelsey's expertise

Chelsey has written 126 Finder guides across topics including:

• Banking
• Stock Trading
• Cryptocurrency

Co-written by

Rebecca Low

Writer

Rebecca Low is a writer for Finder. She has contributed to a range of digital publications, including Wise, income.ca and Indeed, writing on topics like personal finance, career development, and travel. See full bio