Mondex International, facing criticisms about charging users to charge their electronic purses (CI No 2,698), has been forced to keep explaining why it appears to be killing the concept before it has got off the ground. It says charges were always on the cards and had been intended to recoup the costs of developing and installing the system, and there are no plans to drop the charging structure in the future. The charge, said the company, is for convenience, security and the ability to download money onto the Smart Card via a telephone. Retailers will also pay Mondex anything up to 75 pence per Mondex transaction, a price the company said is competitive with that charged by other UK High Street banks for handling retailers’ cash. If the trial is successful, Mondex is planning a nationwide roll-out of the system within two years. The Bank of Scotland will join the scheme once it is national in an attempt to increase its customer base over the border without adding cash dispensers. British Telecommunications Plc is adapting 150 public telephone and 150 telephones in pubs and shopping areas for users to top up their Mondex cards over British Telecom phone lines. Users will be charged standard telephone rates; electronic transactions are said to take a maximum of four seconds. It will also install 2,000 Mondex-compatible screen phones for both home and business users in a free one year trial.
