Feeds

New York e-cash experiment flops

Nobody seemed to care about it, but they'll be back...

  • alert
  • submit to reddit

High performance access to file storage

Citibank and Chase Manhattan have pulled the plugs on one of the largest electronic cash pilots to date, having failed dismally to generate significant enthusiasm from the public. The two banks issued 100,000 people with cards, but discovered that the users averaged an annual spend of less than $20. Heads are being scratched over the reasons for the failure of the experiment. It was confined to New York's Upper West Side Manhattan, so it may have been too limited in scope. Within the test area the vendors who installed it also generally took credit cards, so maybe here it was seen as an unnecessary duplication. And in stores such as newsagents that only take cash, the users tended to use cash rather than e-cash. What actually happened was that the experiment failed to achieve any kind of critical mass or mindshare early on, and then collapsed ignominiously as users and vendors both lost interest. But that doesn't mean, say the e-cash proponents, that such systems will never succeed. Simpler, more transparent mechanisms for loading cash onto the cards may help (most of the Manhattan users only loaded their card once), as may multi-function cards, incorporating credit, charge and e-commerce features. The banks may also have to change their pricing approach. Citibank and Chase wanted to charge users and vendors for using the cards, and though the fees were small, there was considerable resistance to this. It also makes it difficult to figure out why you would want to use one of these rather than an ordinary credit card. ® Click for more stories Click for story index

Top three mobile application threats

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Ex–Apple CEO John Sculley: Ousting Steve Jobs 'was a mistake'
Twenty-nine years later, post-Pepsi exec has flat-forehead moment
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.