Banque Internationale à Luxembourg has partnered with Diebold Inc. to launch a cardless transaction solution that allows accountholders to remotely prestage a cash withdrawal on a smartphone and then complete the transaction at any ATM in the BIL network.

The user simply sets up the transaction on a smartphone, indicating the amount of cash desired and the account from which it should be withdrawn. At the ATM, the customer scans a unique QR code on the phone that instructs the ATM to dispense cash. The transaction is enabled via an encrypted connection to the cloud.

"BIL is the first financial institution in Luxembourg to offer the technology that is the next phase in consumer convenience — the ability to withdraw cash using a smartphone," said Christian Strasser, member of the BIL management board. "We are proud to continue our relationship with Diebold to give our customers enhanced flexibility and greater independence."

The new app also facilitates person-to-person fund transfers. In this case, the smartphone application generates an eight-digit code that can be sent to the recipient, who may then make a one-time withdrawal in the amount specified by the account owner.