Cardless ATM hardware upgrades enable banks to modernize their self-service channels while reducing mechanical card reader maintenance and physical jamming issues.

The Cardless ATM market size is expected to grow from US$ 2.38 billion in 2023 to US$ 5.28 billion by 2031; it is anticipated to expand at a CAGR of 10.5% from 2023 to 2031.

What is driving the market?

Mobile-first banking habits, enhanced security against card fraud, and bank cost-reduction strategies are the principal growth drivers. Financial institutions are increasingly adopting smartphone-based authentication such as NFC tap-to-withdraw, QR code scanning, biometric verification, and mobile-app one-time passwords (OTPs) to bridge digital wallets with physical cash access. Consumers favor cardless withdrawals for faster transaction times and the convenience of accessing cash without carrying a physical wallet, while banks lower operational expenses tied to plastic card manufacturing, logistics, and lost-card replacements.

The transition is moving beyond basic mobile OTP withdrawals toward integrated, omnichannel self-service banking. ATM manufacturers and software providers are investing in NFC-enabled terminals, biometric sensors, cloud-native ATM management software, and open-banking APIs. However, high upfront costs for upgrading legacy ATM fleets, cybersecurity risks linked to mobile phishing and account takeovers, and uneven digital literacy in rural areas remain important constraints.

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Which region leads?

North America leads the market, accounting for an estimated 33%–36% share in 2025, supported by mature banking infrastructure, high smartphone saturation, and early nationwide rollouts of NFC-enabled ATMs by major retail banks.

Asia Pacific is the fastest-growing region, with a projected CAGR of 14.0%–15.1% through 2031. Growth is propelled by rapid digital payment adoption, expanding financial inclusion initiatives, and interoperable QR-code infrastructures. India and China present major growth opportunities as initiatives like India’s UPI-ATM interoperability and China’s mobile wallet and biometric ATM ecosystems scale cardless cash access across urban and semi-urban centers. Europe holds an estimated 23%–26% share, driven by open-banking regulations, contactless payment preferences, and ongoing ATM fleet modernization.

Which segment leads?

By technology, Near Field Communication (NFC) is the leading segment, representing an estimated 42%–45% of market revenue in 2025. Its dominance is supported by widespread smartphone wallet integration and compatibility with existing contactless card readers across global ATM fleets. Meanwhile, Biometric authentication is identified as the fastest-growing technology segment, forecast to expand at a CAGR of 15.0%–15.5%, fueled by regulatory mandates for stronger identity verification and fraud prevention.

By ATM location, On-site branch ATMs hold the largest revenue share at an estimated 50%–52% in 2025, benefiting from controlled environments and established bank security infrastructure. Off-site and white-label ATMs represent a high-growth deployment segment as retail partners and independent deployers expand cardless access in high-footfall commercial locations. By end-user, Retail Banking Customers lead with approximately 65%–67% share, reflecting high everyday withdrawal volumes.

Which companies are prominent?

The competitive landscape features leading ATM hardware manufacturers, payment processors, and financial technology providers, including NCR Atleos, Diebold Nixdorf, Hyosung TNS, GRG Banking Equipment, OKI Electric Industry, Fiserv, FIS Global, Euronet Worldwide, Hitachi Payment Services, and Mastercard.

These companies compete across contactless ATM hardware, biometric modules, multi-vendor ATM software, payment switching platforms, and managed services. Strategic differentiation increasingly depends on hardware retrofitting flexibility, interoperable QR/NFC software stacks, real-time fraud monitoring, and the ability to deliver turnkey ATM-as-a-Service (ATMaaS) solutions.

What is changing in 2026?

In 2026, the market is shifting from proprietary, single-bank cardless apps toward interoperable, open-banking, and multi-channel cash ecosystems. Regulatory momentum—such as open-banking frameworks in Europe and interoperable instant-payment ATM mandates in Asia—is enabling customers to withdraw cash across multi-bank networks using universal QR codes or digital wallets rather than bank-specific apps.

Manufacturers and financial institutions are accelerating investments in next-generation self-service terminals featuring integrated fingerprint/palm-vein scanners, larger touchscreens, and AI-driven anomaly detection to counter mobile-channel fraud. Simultaneously, major payment processors and banks are increasingly adopting outsourced ATM managed services to lower maintenance overhead while rolling out surcharge-free cardless cash networks.

What are the major investment opportunities?

The strongest opportunities lie in ATM-as-a-Service (ATMaaS) platforms, retrofittable NFC and biometric upgrade kits, interoperable QR-payment switching software, and AI-powered fraud prevention systems. Offering subscription-based, fully managed cardless ATM infrastructure lowers capital barriers for regional banks, credit unions, and white-label operators looking to modernize aging fleets.

Additional opportunities include expanding off-site cardless micro-ATMs and white-label terminals in underserved rural and semi-urban markets across Asia Pacific, Latin America, and Africa, where smartphone penetration outpaces traditional debit card issuance. Investors should prioritize solutions that offer seamless API integration with existing core banking systems, low hardware retrofit costs, and multi-layered biometric security.

Future Outlook

Looking ahead toward 2031, cardless authentication is expected to become the default interface for physical cash access, with more than half of ATM transactions in developed economies projected to originate from mobile devices or biometrics rather than plastic cards. As central banks pilot Central Bank Digital Currencies (CBDCs) and instant payment rails continue to mature, cardless ATMs will evolve into hybrid physical-digital financial hubs supporting seamless cash-in/cash-out conversions, digital wallet top-ups, and automated self-service banking.

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