The true cost of e‐purse – a Mondex perspective

Abstract

Argues that the predicted explosion in electronic commerce will be facilitated by low value transactions. Highlights the need for transaction costs to be equally low for this to take place. Two distinct types of electronic cash schemes are evaluated; cleared electronic cash payments schemes such as Proton, GeldKarte, VisaCash and CEPS and non‐cleared payment schemes such as Mondex. Looks at the similarities and differences of the two approaches and the economies of scale that can be achieved by processing high volumes of transactions. Argues that the cost of running cleared payment schemes increases in proportion to the number of purchases being made whereas for non‐cleared schemes such as Mondex they are likely to remain fairly static.

Citation

Burdett, D. (1999), "The true cost of e‐purse – a Mondex perspective", European Business Review, Vol. 99 No. 4, pp. 265-270. https://doi.org/10.1108/09555349910281469