Cardless ATM - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The cardless ATM market size is expected to grow from USD 4.06 billion in 2025 to USD 4.58 billion in 2026 and is forecast to reach USD 8.39 billion by 2031 at 12.86% CAGR over 2026-2031. This report is Segmented by Technology (NFC, QR-Code, Biometric, Mobile-App OTP/Token, and More), ATM Location (On-Site Branch ATMs, Off-Site/Retail ATMs, Other White-Label/Drive-Through ATMs), End-User (Retail Banking, Corporate, Under-Banked Population), and Geography (North America, South America, Europe, Asia-Pacific, Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

Global Cardless ATM Market Trends and Insights

Surge in Mobile Banking Adoption

Mobile banking now reaches more than 3.2 billion users worldwide and underpins demand for cardless withdrawals. Markets with mature app ecosystems transition 40% faster toward digital cash access as banks reuse existing in-app authentication for ATM entry. Gen Z’s expectation of friction-free switching between mobile apps and physical touchpoints encourages banks to present cardless ATM entry as a baseline service. In return, institutions report shorter customer onboarding cycles and higher digital engagement. Early adopters secure a defensible lead, compelling slower banks to accelerate mobile platform upgrades to retain share in the cardless ATM market. This shift also enables banks to reduce dependency on plastic cards, aligning with broader ESG and cost-cutting goals. Mobile-first strategies are increasingly central to competitive positioning, especially in emerging markets where app-based banking leapfrogs legacy infrastructure.

Increasing Demand for Contactless Transactions Post-Pandemic

Pandemic-primed contactless habits are sticky: 29% of UK card activity in 2024 already flowed through digital wallets. ATM manufacturers and banks share the goal of quicker, cleaner cash access by sidestepping card handling. Biometric authentication trims transaction time by 35%, raising throughput in busy branches. As a result, contactless infrastructure becomes a prerequisite for retention: banks lagging on cardless rollouts risk account attrition, especially in urban markets where convenience benchmarks are dictated by fintech entrants. This trend is reinforced by customer expectations for tap-to-access functionality across all service channels, not just point-of-sale. Financial institutions now view contactless readiness not only as a user convenience but as a competitive hygiene factor.

Security Concerns Around Mobile/Biometric Authentication

A USD 100,000 phishing incident that hit 125 Fifth Third Bank clients in 2024 illustrated how fraudsters target mobile credential workflows. Unlike password resets, biometric leaks are permanent, so any breach dents consumer confidence far longer. Banks must layer risk scoring, device telemetry, and real-time anomaly detection around biometric flows. Investment in customer education, explaining why the same face unlock that secures a phone can safely open an ATM, becomes critical for further penetration of the cardless ATM market. Additionally, regulators are beginning to scrutinize biometric risk frameworks, urging banks to demonstrate post-breach accountability and resilience. Financial institutions that transparently disclose security protocols and offer opt-in flexibility tend to retain higher trust in biometric-enabled banking.

Other drivers and restraints analyzed in the detailed report include:

• Banks’ Cost-Optimization by Reducing Card-Issuance Expenses
• Integration of Open-Banking APIs Enabling Third-Party Withdrawals
• High Retrofit CAPEX for Legacy ATM Fleets

Segment Analysis

NFC retained 41.95% of the cardless ATM market share in 2025, buoyed by universal smartphone compatibility and the ease of tapping a phone to a reader. Biometric authentication, however, is projected to clock a 14.25% CAGR through 2031, the fastest rate across technology groups. This trajectory is tied to tier-1 banks such as JPMorgan Chase extending face and fingerprint sign-in to the ATM fleet, making identity-based access the norm rather than an outlier.

The upgrade path reflects how security preferences migrate from convenience toward assured identity. Multifactor biometric stacks-combining facial, voice, and fingerprint templates, cut takeover fraud by double-digit percentages, justifying higher hardware costs. QR-codes retain relevance where handset diversity or privacy rules limit biometric capture, while Bluetooth Low-Energy serves niche use cases like gated venues needing short-range interaction. Banks balancing multiple techniques on a single chassis future-proof their estate and widen customer eligibility, enlarging overall participation in the cardless ATM market.

Complete Report Scope:

• By Technology
  • NFC (Near-Field Communication)
  • QR-Code
  • Biometric (Fingerprint, Face, Palm-Vein)
  • Mobile-App OTP / Token
  • Bluetooth Low-Energy (BLE)
• By ATM Location
  • On-Site (Branch) ATMs
  • Off-Site / Retail ATMs
  • Other (White-Label,Drive-Through ATMs)
• By End-User
  • Retail Banking Customers
  • Corporate Customers
  • Under-banked Population
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Peru
    • Chile
    • Argentina
    • Rest of South America
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Italy
    • BENELUX
    • NORDICS
    • Rest of Europe
  • Asia-Pacific
    • India
    • China
    • Japan
    • Australia
    • South Korea
    • South-East Asia
    • Rest of Asia-Pacific
  • Middle East and Africa
    • United Arab Emirates
    • Saudi Arabia
    • South Africa
    • Nigeria
    • Rest of Middle East and Africa

Geography Analysis

North America contributed 33.10% of the global 2025 revenue. High smartphone saturation and aggressive retail rollouts by JPMorgan Chase and Bank of America position the United States as a proving ground for high-definition facial recognition and palm-vein scans. Security lapses, such as the Fifth Third Bank phishing event, accelerate layered defense investment, emphasizing the need for continuous anomaly monitoring. Canada mirrors U.S. adoption with Interac’s mobile-verified cash pilot, while Mexico leans on QR-code implementations to serve an under-banked population that prefers cash for small-ticket retail purchases.

Asia-Pacific is the growth pacesetter with a forecast 14.02% CAGR to 2031. India spearheads adoption via the UPI-ATM initiative, making cardless withdrawals available at more than 15,000 machines in both urban and tier-3 cities. In China, fully mobile consumer behavior converges with sophisticated QR and NFC acceptance, generating fertile ground for biometric ATM upgrades as local handset makers embed secure elements by default. Southeast Asian fintechs partner with incumbent banks to co-brand terminals, enabling overseas workers to remit funds home and extract cash without plastic cards.

Europe shows steady but policy-driven momentum. PSD3 enforces open-banking compliance, standardizing the API overlay across member states and facilitating multi-bank “super-ATM” rollouts tested in the United Kingdom. Spain will host Revolut’s extra-large touchscreen prototype in 2026, demonstrating fintech influence on form factor. Nordic markets-long pioneers in cashless retail-still keep rural ATMs operational, but dual-mode layouts combine card and cardless workflows to satisfy tourists. In the Middle East and Africa, finger-vein services launched by Arab Bank prove biometrics resonate in culturally diverse cash ecosystems, while South African retailers integrate white-label machines to soften branch closure impact.

List of Companies Covered in this Report:

• Bank of America
• Wells Fargo
• JPMorgan Chase
• Citibank
• Barclays Bank
• HSBC
• Santander
• ICICI Bank
• HDFC Bank
• Axis Bank
• Commonwealth Bank of Australia
• Westpac Bank
• OCBC Bank
• DBS Bank
• Maybank
• Emirates NBD
• Qatar National Bank (QNB)
• Ita� Unibanco
• BBVA
• Bank of China

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support