Forwarded message:
From: Dave Birch
Press Release.
Hyperion have been working with Mondex International to develop a
smartcard-based electronic cash service which will be launched in the UK in
1995.
Mondex has been invented as an alternative to cash. At the heart of the
system is a plastic smart card which stores electronic cash value. Mondex
customers will be able to use specially adapted NatWest and Midland cash
machines (ATMs) or a new generation of BT telephones to transfer cash between
their bank accounts and their cards.
Once funds have been transferred onto the customer's Mondex card it can be
used to make purchases up to the total cash value held on the card or to make
payments by telephone. The card can be used to make purchases for large or
small amounts.
Mondex cards can be locked by the cardholder and unlocked by using a personal
code. Once locked, the money in the card cannot be spent without re-keying
this personal code. Shoppers will not need to sign anything when using the
card and there will be no need for authorisation calls; the customer's card is
inserted into the terminal and the value is instantly moved from the card to
the terminal. With Mondex, retailers will not have to account to the bank for
each individual transaction; their electronic terminal will simply accumulate
the total value of Mondex transactions, which can be banked by telephone line
at any time.
Cardholders will be able to check how much cash they have left on their card
at ATMs, a new range of BT payphones and home phones or by using a small
key-ring sized personal reader. A pocket-sized electronic wallet will show
cash available as well as providing a record of the last ten transactions. It
can also be used for transferring money from one card to another or for
transferring cash into the wallet for safer-keeping at home. The card is
designed to be used by children as young as 5.
In summary, among the benefits consumers will see are: 24-hour electronic cash
at Mondex phones which may be available at home, in shops or at work and a
convenient, simple to operate alternative to cash that is inherently safer to
carry. Retailers and other cash handling business will benefit from an
efficient, faster, and more secure way of handling money that is economic to
operate.
In 1990, National Westminster needed a consultancy capable of translating
radical business ideas into reality. They chose Hyperion. We have provided
resources to assist in:
* The development of requirements, functional specifications and
architectural specifications for a variety of services.
* The development of software specifications for a large variety of
components.
* The management of software implementations, performed by developers
commissioned by National Westminster Bank.
* The management of testing and integration activities, including the
development of rigorous test specifications derived from the structured
analysis and design of products.
Hyperion's considerable expertise in the practical analysis and specification
of highly secure financial systems is well known and this appointment has
confirmed their position as world leaders in electronic payment systems
consultancy, following on as it does from their work for organisations such as
the Bank of England, APACS and SWIFT.
Notes for Editors-Why is this interesting?
1. This is believed to be the world's first implementation of general
purpose, person-to-person electronic money-a genuine replacement for notes and
coins.
2. Since electronic money works over the telephone, for the first time in
history people can exchange cash without being in the same place at the same
time.
3. Recent figures show the cost to UK banks of moving cash around is
approximately 4.5Bn/annum.
4. A senior NatWest executive predicted that in 10-15 years' time, the
telephone will be the dominant way in which electronic money is deposited and
withdrawn.
5. Analysts estimate that the service, if successful, will add around
100M/annum to BT revenues (The Times, 9th December 1993).
Notes for Editors-Mondex
Mondex International is a joint venture between National Westminster Bank (the
UK's largest retail bank) and Midland Bank (part of the Hong Kong and Shanghai
Banking Corporation). They are working with BT in the UK to introduce
domestic service next year, beginning with a trial in Swindon.
National Westminster will be actively seeking banking partners worldwide to
establish Mondex as the basis for a global electronic cash payment scheme.
A number of international technology companies, including Dai Nippon Printing
Co. Ltd., Hitachi Limited, NCR, Panasonic (Matsushita Electric
Industrial/Matsushita Battery), Oki Electric Industry Company Limited, SPOM
Japan Co. Ltd., and Texas Instruments Limited are working with National
Westminster developing suitable components and equipment for the Mondex
product.
The public launch of the service will take place in Swindon in 1995. All
40,000 of the banks' customers will be eligible and the banks plan to have all
1,000 or so retailers in Swindon taking part.
Notes for Editors-Hyperion
Hyperion is an information technology management consultancy based on the
Surrey Research Park. The company, founded in 1985, employs 19 people and is
currently growing at around 30% per annum.
The company has a worldwide reputation: in recent months, their consultants
have been on assignment in the US, Japan, Belgium, Switzerland, Nigeria, South
Africa and France. Their clients include the world's largest computer
company, (IBM) and the world's largest communications company, (AT&T) as well
as household names such as Sainsbury's, Nationwide Anglia and the London Stock
Exchange.
The company has close links with leading research institutions. Since 1987
they have sponsored M.Sc research at the University of Surrey and are
currently funding Ph.D research into business re-engineering at City
University in London.
For further details, please contact:
David Birch
Director, Business Development
Hyperion
8 Frederick Sanger Road
Surrey Research Park
Guildford
Surrey GU2 5YD
National
Telephone (0483) 301793
Fax (0483) 61657
International
Telephone +44 (483) 301793
Fax +44 (483) 61657
E-Mail: 100014,3342(a)Compuserve.com
ENDS.
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Stanton McCandlish * mech(a)eff.org * Electronic Frontier Found. OnlineActivist
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