Over the past few years, a number of technically different electronic payment systems have been invented and introduced into the marketplace. These systems vary across a number of dimensions. Some of the electronic payment systems are "tangible," based on IC cards, and the others are "intangible," based on the Internet. Some of the systems are cash substitutes exclusively, and others substitute not only for cash but also for check, credit card, or account transfer. Some systems are operable through telephone or PC network, and the others are operable only through the banking ATMs. As of today, we do not know which system or systems will emerge as the industry standard, or ëwinnerí.

To predict the ëwinnerí among the available (and still emerging) electronic payment systems, there are two critical aspects that need to be considered: technical superiority and strategic/marketing advantage. Technical superiority should lead a company to win but as we know from history, technical superiority does not necessarily guarantee market dominance æ consider for example, Beta verses VHS in the competition for the VCR standard.

This research briefing focuses on Mondex and the technical issues related to Mondexís innovative electronic payment system. First, we will provide an overview of electronic payment systems. Second, we will focus Mondexís technical features. This will be followed by a review of the future issues concerning the technical development of electronic payment systems. For our teamís second project we will focus on Mondex Internationalís strategic direction.