Worldcoin could become a Biometrics-as-a-Service with its ATM and Voting Machine
Imagine Worldcoin rolling out as the go-to for Biometrics-as-a-Service, complete with its very own biometric ATM-station. Imagine unboxing your new Nothing phone, where alongside the sleek device, you find a Worldcoin’s Orb, a biometric scanner for fingerprints too, and UX-tailored launcher with pre-installed World ID and crypto-wallet.
I recently met with Sviatlana Tsikhanouskaya’s team. She’s known for winning Belarus’s last presidential vote but had to flee to Vilnius due to Lukashenko’s regime. They’re exploring digital IDs and the potential for online elections, even receiving a nod from the EU for an alternative, biometrically-enabled ‘alternative’ passport. Right now, they’re managing online KYC but lack the biometric component essential for the passport. Attempts to collaborate with third-party providers like VFS and TLS proved to be cumbersome and costly.
This situation presents a golden opportunity for Worldcoin, or any of its numerous competitors, to step in and demonstrate their technology’s real-world application and success. Plus, European MPs have recently suggested making it easier for Russian opposition figures to open bank accounts overseas and get visas for moving. They’re even talking about introducing a “democracy passport,” taking a leaf out of the Nansen passport.
ATM-as-a-Service: The DID Future is Beyond Cash and Banking
Imagine a world where Worldcoin spearheaded an ATM-as-a-Service (ATMaaS) revolution, combining traditional ATM features that let you verify&KYC yourself on every corner, including full biometrics of not just the retina but also fingerprints, print not only bank but also ID cards on demand, and even vote in elections!
This concept isn’t just about withdrawing cash; it’s a futuristic take on empowering users with on-the-spot financial services, identity verification, and democratic participation.
Customer Pain Points and Revolutionary Solutions:
- Verification and Biometrics for Digital ID Services: Setting up high-quality verification infrastructure is costly and complex for individual companies, leading to minimal coverage.
- Enter Biometrics-as-a-Service: comprehensive infrastructure and API access for seamless identity verification and entry control, catering to airports, hotels, and even cannabis dispensaries.
- For Banks, Especially Digital Ones: The cost and logistics of card delivery can be a conversion killer. The solution? On-site card printing. Imagine walking up to an ATM and walking away with your new bank card in minutes, not days.
- Cash vs. Digital Banking: Despite the rise of digital banking, cash transactions remain king, both in volume and growth. Digital banks limit withdrawal options, making cash deposits nearly impossible. The ATMaaS could revolutionize this, providing easy access to free cash transactions and deposits via direct-to-account API-integration.
- The rise of crypto-ATMs underscores the evolving financial landscape, offering a glimpse into the potential of a more integrated ATM service. But why stop there? Imagine ATM booths designed by Worldcoin with the aesthetic appeal of Apple products, offering a sleek interface for biometric verification alongside traditional ATM services.
- Elections: The shift to online has streamlined many processes, but offline elections remain costly due to the logistics of handling physical ballots. The solution? Digital voting on ATM, kiosk, or terminal screens, secured with biometrics to ensure your vote is yours alone.
Imagine deploying a global network of smart ATMs, accessible via APIs for digital banks and e-wallets (including Worldcoin wallet) worldwide. These aren’t your average ATMs. Equipped with document scanning, biometric verification (including facial and fingerprint recognition), and video call capabilities for live verification, they represent a leap into the future of banking and identity services.
These ATMs could print bank and ID cards on the spot (facilitated by the same technology used to produce Aadhaar cards via kiosks in India), state IDs, and more. They could also serve as polling stations during elections, incorporating biometric verification to authenticate voters.
The proposal for an ATMaaS network is not just about providing financial services; it’s about creating a seamless, integrated experience for verification, banking, and even democratic participation. This vision aligns with the needs of companies like Worldcoin potentially transforming the way we think about ATMs and their role in our digital and physical lives.
Looking Back to the Future: On The Way to crypto ATMs
The number of cryptocurrency ATMs worldwide has decreased to 33,740 units. At the beginning of 2023, there were 10% more — 37,591, according to Coin ATM Radar data (three years earlier, in 2020, the number of bitcoin ATMs in the world increased by 83%).
The USA remains the leader in the number of installed bitcoin ATMs — 28,562 (84.6%). Canada ranks second with 2,589 units or 7.7% of the total. Australia is in third place with 362 (1%). In total, they are installed in 70 countries around the world. The United Kingdom is the leader in Europe. El Salvador’s position as the fourth-largest crypto ATM hub was short-lived as Australia stepped up its game.
Among manufacturers, General Bytes leads with 9,642 crypto ATMs (28.6%). Followed by BitAccess (6,808, 20.2%) and Genesis Coin (5,737, 17%). In 2020, Genesis Coin and General Bytes had market shares of 36% and 29.5% respectively.
The leading bitcoin ATM operator is Bitcoin Depot — the firm manages 6,251 devices or 18.5% of the market share. Coin Cloud (4,269, 12.6%) and CoinFlip (3,939, 11.7%) also made it to the top 3. In 2020, the trio of leaders — Coinflip, Bitcoin Depot, and CoinCloud — each had almost 10% of the total. In February 2023, bitcoin ATM operator Coin Cloud (Cash Cloud) filed for bankruptcy, the company that runs Coin Cloud digital currency ATMs in Brazil and the United States, stated that it operates over 5,000 ATMs that support more than 40 cryptos.
- the number of devices reached 11,689 units by the end of the year, while on January 1, 2020, there were only 6,372 pieces. Then, new bitcoin ATMs were being installed at a rate of more than 24 units per day. The market leaders have not changed over three years. The top 10 leading operators managed more than half of the operating bitcoin ATMs (54.5%).
In February 2023, bitcoin ATM operator Coin Cloud (Cash Cloud) filed for bankruptcy, the company that runs Coin Cloud digital currency ATMs in Brazil and the United States, stated that it operates over 5,000 ATMs that support more than 40 cryptos. When Coin Cloud had 4,826 ATMs, almost all of which were in the United States, it was the second-largest ATM provider in the world. In 2022, NCR Corporation planned to purchase Bitcoin ATM company LibertyX, which currently services 20,000 retail stores in the U.S. with 9,500 crypto ATMs.
Today, there are over 2 million ATMs across the globe
In a world increasingly dominated by digital transactions, the ATM market finds itself at a crossroads, presenting a fascinating dichotomy of growth and decline. Despite the booming adoption of card and digital transactions, cash remains a stalwart in the global economy, ensuring ATMs hold their ground, albeit with evolving roles and technologies.
The dynamics of the number of ATMs in the world per 100,000 adults, units (according to World Bank data): 2006–18.95, and in 2018–41.6. Globally, the ATM market has been experiencing a nuanced shift. In emerging economies, where banking infrastructure is still being developed and cash is king, ATMs continue to see growth. Countries like India and Indonesia are witnessing an increase in ATM installations to cater to a growing banked population and the need for financial inclusion. Here, ATMs are not just cash dispensers but also act as points for basic banking services, from deposits to fund transfers.
Conversely, in developed economies, the narrative diverges significantly. The U.S., U.K., and parts of Europe are seeing a gradual decline in ATM numbers. This trend is propelled by the accelerated adoption of digital payment methods, especially in the wake of COVID-19, which has pushed more consumers towards contactless payments and online banking. The decline is not precipitous but signifies a shift towards digital-first banking experiences.
While digital transactions are on the rise, cash transactions hold a resilient stance globally. The Federal Reserve’s 2019 report highlighted that cash remains the most frequently used payment method, particularly for transactions under $10. Similarly, the World Cash Report 2018 by G4S noted that cash circulation relative to GDP is rising in most countries, including those with a strong push towards cashless societies.
The resilience of cash underscores a dual narrative where, despite the growth of digital and card transactions, ATMs continue to play a crucial role in ensuring access to cash, especially in underbanked areas or during times of crisis.
Main Players, Challenges and Opportunities
Leading players in the ATM market include Diebold Nixdorf, NCR Corporation, and Hyosung, among others. Innovations are also coming from fintechs and banks, with features like cardless withdrawals, cryptocurrency transactions, and mobile app integrations, highlighting the ATM’s transition from a mere cash dispenser to a comprehensive financial service point.
The ATM industry faces its set of challenges, from the high cost of maintaining and upgrading machines to the increasing threat of cyber attacks. Yet, these challenges present opportunities for innovation. Additionally, the integration of ATMs with digital banking platforms offers a seamless omnichannel banking experience, bridging the gap between physical and digital financial services.
For example, in Indonesia, the ATM market got disrupted by the local “Uber,” GoJek: you choose in the app how much money you want to withdraw or deposit, they’re integrated with the major banks, and while you’re riding their scooter or taxi, you hand over/get the money. In this context, it could be cool to play around with, for example, an ATM (and voting machine) built into an Arrival electric bus.
Biometric-First Crypto-Phone: Beyond Conventional Security
Nothing, with its rebellious and counter-culture ethos, has always pushed the boundaries of what’s expected. Surprisingly, it hasn’t yet ventured into creating its own crypto-wallet or digital ID solutions, which would seamlessly align with its brand identity. A collaboration with Worldcoin could bring these ideas to life, integrating both software (soft wallet) and hardware (cold wallet) solutions into the Worldcoin ecosystem.
The potential collaboration between Nothing, a forward-thinking British tech brand known for its innovative design, and digital identity unicorn Worldcoin, could redefine the intersection of technology, finance, and digital identity. Imagine a device that’s not just smart, but also intrinsically secure, thanks to its biometric-first approach: introducing the concept of a crypto-phone, which could be the next big leap in digital identity and financial transactions.
Current smartphones offer basic biometric security features like fingerprint and facial recognition, sufficient for unlocking your phone or making payments. However, these features fall short of the more rigorous biometric requirements needed for document verification for passport control. This gap in the market presents an opportunity for Nothing to introduce a biometric-first phone with Worldcoin, raising the bar for security and usability. Such a device, packaged with state-of-the-art biometric devices as part of the “box,” could revolutionize how we think about smartphone security.
Customization at the OS Level: Unlike iOS, Android allows for the creation and implementation of custom “launchers,” enabling brands to tailor the Android OS to their unique style and functionality. This opens doors for Nothing to offer a customized experience right out of the box, preloaded with essential apps for seamless integration with Worldcoin’s digital identity solutions.
Packaging Innovation: A Complete Ecosystem in a Box. The idea extends beyond just the phone itself: the packaging could include Worldcoin’s Orb and a scanner for fingerprint, Worldcoin Touchdown, echoing the style of Worldcoin’s Orb.
Tailored for Operators: Imagine unboxing your new Nothing phone, where alongside the sleek device, you find a biometric scanner (retina- and fingerprint- both), ready to dive into the world of secure digital transactions and identity verification. This isn’t just a phone; it’s a gateway to a new era of digital identity converging in the palm of your hand. With Nothing’s design prowess and Worldcoin’s vision for a secure digital identity, the biometric-first crypto-phone could be more than just a concept.
I periodically share my thoughts on digital identity here — for example, what the flaws of Worldcoin are and how World ID could be improved.
