Reengineering Money: The Mondex Stored Value Card and Beyond
Eric K. Clemons, David C. Croson, and Bruce W. Weber
International Journal of Electronic Commerce
Volume 1, Number 2, Winter 1996-97, pp. 5-31.
Abstract: Electronic cash systems seek to reengineer cash
payments. While the use of cash imposes numerous invisible costs on the
economy, many security and consumer acceptance issues prevent its immediate
replacement. We begin by analyzing the economics of the proposed Mondex
electronic cash system, suggesting possible benefits that may be realized
by various channel members whose cooperation will be essential to any
successful implementation of electronic cash. We conclude that the major
challenges to the global implementation of electronic currency will be
establishing the proper incentives for channel members, overcoming
regulatory barriers, and gaining a critical mass of consumer and merchant
acceptance, rather than difficulties with technology or network security.
We identify several areas for directed future research on the economic
implications of electronic payment.
Key Words and Phrases: Electronic cash, e-cash, money,
Mondex, pricing, strategy, regulation, reengineering, economics.