January 1994 - cypherpunks-legacy

Re: Mondex: our press release
by None 24 Jan '94

24 Jan '94

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. -- Stanton McCandlish * mech(a)eff.org * Electronic Frontier Found. OnlineActivist F O R M O R E I N F O, E - M A I L T O: I N F O @ E F F . O R G O P E N P L A T F O R M O N L I N E R I G H T S V I R T U A L C U L T U R E C R Y P T O

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Mondex Digital Cash System
by John Perry Barlow 21 Jan '94

21 Jan '94

I met with these two British gentlemen, Dave Birch and Neil McEvoy, while at the Worldwide Electronic Commerce Conference in New York on Monday. They, their system, and their organization (Hyperion) seem quite impressive. Unless I am misinformed, they have the only major digital banking system (out of 12 competitiors) which completely detaches transaction from identity. The card works as a kind of digital cookie jar in your wallet. Credits can easily flow into and out of it. You can also create a "digital mattress" in your home or office system to store credits and from which you can disburse them over the Net while paying bills. Both of these fellows were familiar with EFF (indeed, one of them is a member) and were very pleased to make contact with us. They are eager to work with us in the future. As you can see from the following, a number of major institutions have already signed on. >Date: 21 Jan 94 08:34:33 EST >From: Dave Birch <100014.3342(a)CompuServe.COM> >To: John Perry Barlow <barlow(a)eff.org> >Subject: Mondex Press Release > >NEWS RELEASE-8TH DECEMBER 1993 > >NATWEST, MIDLAND AND BT TO DEVELOP NEW ELECTRONIC CASH PAYMENT SERVICE. > >National Westminster Bank announced today (8 December) that it had developed a >new electronic cash payment service, branded Mondex. In the UK, NatWest is >planning a joint venture with Midland Bank and both banks are working with BT >to introduce the service domestically in 1995. NatWest will be actively >seeking banking partners worldwide to establish Mondex as the basis for global >electronic cash payment scheme. > >Mondex has been invented by NatWest as an alternative to cash. It is not >intended to replace debit or credit cards. 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. > >NatWest and Midland have begun discussions with a number of major retailers as >a first step towards implementation of Mondex in the UK through a range of >service providers. It is intended that the service will begin in Swindon in >1995. > >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. > >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. > >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 NatWest >developing suitable components and equipment for the Mondex product. > >Derek Wanless, NatWest's Group Chief Executive, said: "Although Mondex will be >launched in the UK, it is a major commercial opportunity for banks everywhere. > Mondex is a multicurrency product, capable of holding up to five separate >currencies on a card simultaneously. > >"It is the intention to invite other institutions in the UK to join Mondex in >due course and to recruit major institutions worldwide with the intention of >forming a new company, Mondex International, which is capable of becoming a >truly global payment scheme." > >Chris Wathen, Midland Bank's Managing Director, Branch Banking, said "The >flexibility and freedom that Mondex provides will make service attractive to >all types of user, be they personal customer, retailer or service provider. >Midland Bank is pleased to be at the forefront of this exciting development on >behalf of the HSBC Group." > >Bruce Bond, BT's Group Director of Products and Services Management, said: >"Mondex is a major implementation of smartcard technology and BT is delighted >to be working at the forefront of such communication developments. BT >believes that smartcards will play a key role in providing new and innovative >services. > >"With Mondex, customers will be able to use BT's extensive pay phone network >greatly increasing the opportunities to access cash. BT is pleased to be >working with these two major high-street banks to provide customers with a >flexible and secure method of payment." > >End > >PRESS COMMENT-The London Times, 9th December 1993 > >Recent figures show the cost to UK banks of moving cash around is >approximately 4.5Bn/annum. > >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. > >Analysts estimate that the service, if successful, will add around 100M/annum >to BT revenues. > >The card is designed to be used by children as young as 5. > > -- Stanton McCandlish * mech(a)eff.org * Electronic Frontier Found. OnlineActivist F O R M O R E I N F O, E - M A I L T O: I N F O @ E F F . O R G O P E N P L A T F O R M O N L I N E R I G H T S V I R T U A L C U L T U R E C R Y P T O

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