AT&T and Wells Fargo investing in an electronic cash card

Article Abstract:

AT&T and Well Fargo and Co join the Mondex push, bringing the cash card to the US. The Mondex smart card was designed to take to place of cash for small purchases, but AT&T and Wells Fargo hope to expand the card to support payments over the Internet. AT&T officials claim that the card provides tighter security than a software-only solution. The Mondex program requires that users buy a $20 device that lets a PC read and write to the chip embedded on the Mondex cards. This process allows users to load the card with cash. Mondex users can transfer cash between themselves, a capability that makes officials concerned about fraud and counterfeiting. In response, the Mondex program is modified in the US, so that banks can monitor card use. The Mondex program enters a test stage in Jul 1996, and a wide rollout is set for early 1998. AT&T plans to distribute Mondex free to customers and charge merchants, while Wells Fargo will charge both users and merchants.

Magnetic Cards, Magnetic and Optical Recording Media Manufacturing, Electronic components, not elsewhere classified, Handheld computers, Handheld data devices, Product information, Telecommunications services industry, Telecommunications industry, AT&T Corp., T, Technology application, Distribution, Product application, Hand-held data device, Wells Fargo & Co., Hand-held terminals, Product distribution, WFC, Mondex (Hand-held data device), Mondex International

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Citibank sets new on-line bank system; a pioneer revisits its electronic frontier

Article Abstract:

Citibank plans to introduce a new Internet-based retail service that combines banking, brokerage and financial information. The consumer electronic banking pioneer will replace its existing back-office systems that help maintain customer accounts. These proprietary systems have cost hundreds of million of dollars to develop and upgrade since their introduction in the 1980s. Citibank is making the radical move to keep pace with Internet financial services leaders such as E-Trade, Charles Schwab and Banc One's First USA credit card subsidiary. Customers will find that the new Citibank service, designed by its internal E-Citi team, resembles a more sophisticated version of Citibank's Direct Access online banking system. Citibank will test the banking and investment service in US markets. The bank hopes its service will raise its initial number of online customers from 100 million to one billion by 2010.

Electronic commerce, E-commerce, Company service introduction, Service introduction, Electronic banking, Online banking, Home banking, Home banking services

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Got a dime? Citibank and Chase end test of electronic cash

Article Abstract:

Citibank and Chase Manhattan have discontinued their electronic cash system test in New York City. The announcement represents another setback for electronic cash, which has failed to gain popularity with customers and participating merchants. Testing for Citibank and Chase started in Oct 1997 in the Upper West Side of Manhattan, where the banks issued smart cards to almost 100,000 residents. Plans called for customers to transfer cash from their bank accounts to the smart cards at ATMs, thereby eliminating the need for coins and bills. Customers then would have more convenience when spending the money at 600 merchants. Few customers used the cards more than once, which Chase and Citibank blamed on the limited availability in New York City. The merchant dropout rate reached 400, as a result of frustration with a system that proved slow and cumbersome.

United States, Services discontinued, New York, New York, Chase Manhattan Bank N.A. (New York, New York)

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