Despite the popularity of credit and debit cards, the vast majority of all transactions worldwide are still carried out with cash.
Cash remains the only universally acceptable form of payment - even when a retailer doesn't accept a particular credit card, cash will be taken. When it is, the exchange of value is immediate. No clearing or processing is needed, no signatures and no electronic transfers.
Smart cards have been used as cash substitutes for a decade, in phone cards, vending cards and transit cards. However, the value stored on these cards has already been paid, and cannot usually be exchanged for other goods and services.
A true cash alternative, replicating the core features of notes and coins, would have to be universally recognised and acceptable. Like cash, transactions would have to offer immediate transfers of value. Finally, like hard cash, electronic cash has to enable easy person to person payments. Electronic cash also has to be able to work in different currencies. And it would have to be secure from forgery.
Mondex is the only electronic cash system which meets all of these criteria.