Electronic cash in a global world

Summary form only given. As technology marches forward, biometric verification and smart cards are avenues that financial institutions are exploring in their combat of payment fraud. An alternative however could be to develop a product that will replicate the qualities of cash, utilising leading edge technology. Mondex, the electronic cash card using smart card technology developed originally by NatWest Bank is one example of harnessing new technology, providing a consumer product which replicates the core features of cash but adds extra flexibility, control, security and convenience. Because the payments are electronic, Mondex delivers valuable new features which improve on traditional notes and coins: transfer of electronic cash over a telephone line; maintenance of an electronic statement of the ten most recent transactions; ability to “lock” electronic cash to prevent unauthorised access. Mondex has been developed, tested and validated through an extensive market research programme. The research showed that consumers found Mondex convenient, flexible and offering control and security