Cover image for The changing face of money : will electronic money be adopted in the United States?
The changing face of money : will electronic money be adopted in the United States?
Good, Barbara Ann.
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Publication Information:
New York : Garland Pub., 2000.
Physical Description:
xv, 132 pages ; 23 cm.
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Table of Contents
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HG1710 .G66 2000 Adult Non-Fiction Central Closed Stacks

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Although the cashless society has been predicted for at least twenty years, the new forms of card-based and software based electronic money may prove to be a partial alternative to the current forms of payment. This study examines these emerging electronic money systems and their possible adoption, primarily in the United States.

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Good investigates whether Americans will accept "electronic money," which she narrowly defines as "smart cards"--devices that act as portable storage instruments with intelligence (chip memory), containing identity and security information as well as records of stored value (i.e., they are like cash.) They are not credit cards. Smart cards are used more widely in Europe than in the US, and several systems currently popular in Europe are described in the book. Software-based electronic money is also described and discussed. The thrust of the book, however, is to predict how much use Americans will make of such devices. Good predicts that smart cards will make an entry into the US as an "additional," but not dominant, payment method. Her conclusion is based, in part, on an analysis of historical data indicating that retail payments in the US are still dominated by cash (in 1996, 54 percent of all retail payments were in cash). Good also presents arguments for the ease with which smart cards can be used on the Internet, but concludes that their penetration will be small and slow in coming. An ideal introduction to current research on "cashless payments"; an extensive bibliography makes the book valuable for researchers. Upper-division undergraduate through professional collections. B. P. Keating; University of Notre Dame

Table of Contents

List of Figuresp. ix
List of Tablesp. xi
Prefacep. xiii
1. Introductionp. 3
2. Money: What it is and How it worksp. 11
The Importance of Moneyp. 12
Other Views of Moneyp. 14
Is Electronic Money Really Different?p. 16
Other New Payment Methodsp. 16
Paper Moneyp. 17
Credit Cardsp. 19
3. An Overview of Electronic Money--Its Forms and Functions, Standards and Design Issuesp. 25
History of Smart Cardsp. 25
Chips vs. Magstripe Cardsp. 27
Designs of Stored-Value Cardsp. 28
Software-based Electronic Moneyp. 35
Standardsp. 38
Security Issuesp. 40
The Need for a Dominant Designp. 42
Will a Dominant Design Emerge?p. 43
Conclusionsp. 45
4. Innovation, Diffusion, and Electronic Moneyp. 49
Innovation and Diffusionp. 50
Rates of Adoptionp. 53
Credit Cardsp. 53
Cellular Phonesp. 57
Electronic Money Systemsp. 60
Lessons to Be Learnedp. 61
Network Economiesp. 66
Conclusionsp. 67
5. Electronic Money Pilot Programsp. 71
The Mondex Pilotsp. 72
The VisaCash Pilotsp. 77
Europay Clipp. 81
The Netherlands Programp. 81
Other Pilots and Programsp. 82
Closed Systemsp. 82
Developing Countriesp. 83
Lessons Learned from the Pilotsp. 83
6. Policy and Legal Issues of Electronic Moneyp. 87
Policy and Regulatory Issuesp. 88
U.S. Current and Proposed Regulationsp. 88
Basel Committee and the G-10 Proposalsp. 90
Regulations in the G-10 Countriesp. 95
Legal Framework Issuesp. 99
Conclusionsp. 101
7. Final Thoughts and Conclusionsp. 105
Are Americans Different?p. 105
Payments in the U.S.p. 107
The Market for Electronic Moneyp. 109
Introduction of Other Payments Methodsp. 111
Conclusionsp. 112
Future Research Effortsp. 117
Bibliographyp. 121
Indexp. 129