Android Pay and Apple Pay users are now able to get cash without a card from 5,000 Wells Fargo (NYSE: WFC) ATMs in the United States.
That means 40% of Well Fargo’s automatic teller machines will now provide cash to users of the two most popular near field communication (NFC) based payment solutions and Samsung Pay, TechCrunch reported. Customers will also be able to get cash with Well Fargo’s own mobile wallet and banking app.
Customers will have to look for a mobile banking symbol at the ATMs. Wells Fargo did not say whether its machines will provide cash to users of quick-read (QR) code based payment solutions such as Walmart Pay, Alphabet’s Tez, and Alipay. Wells Fargo is hoping to attract younger customers that like to use “tap and pay” solutions.
Why Android Pay and Apple Pay need Cash
Cash is needed to expand usage of payment app solutions such as Apple Pay and Android Pay because 32% of all transactions in the US in 2015 still involved paper money, The San Francisco Federal Reserve reported.
Around 75% of the gifs to other people and 39% of food, and other purchases in the United States were made with cash in 2015, according to the 2015 Diary of Consumer Payment Choice. This increases the demand for cash from younger people and some older consumers.
Adding cash from ATMs can also help Apple and Android head off QR code based solutions. The most dangerous of which is Alipay from China’s Ant Financial. Alipay is now accepted at Starbucks locations in China, 9 to 5 Google reported. That means it will probably soon join Chase Pay at Starbucks locations in the United States. Alipay entered the American market earlier this year.
Alipay Invasion is Growing, Watch Out Android
Alipay has a secret weapon in its’ American invasion, Chinese visitors to the United States 400 million of whom use Alipay back home.
Around 90% of Chinese tourists prefer to use apps like Alipay when they travel, Recode reported. Since 135 million Chinese tourists traveled last year and spent $261 billion that’s a strong beachhead for Alipay’s North American offensive.
One has to wonder which U.S. bank will add Alipay payment first. The most likely candidate is JPMorgan Chase (NYSE: JPM). Chase is rolling out its own QR code solution called Chase Pay.