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To: TLindt who wrote (4389)	5/20/1998 3:26:00 PM
From: jjs_ynot	Read Replies (1) \| Respond to of 8545

Smart Cards Are Poised for Success Leave your cash at home by Bob Israel Leave your cash at home. No more counting out loose change to pay for that bagel and cup of coffee you enjoy each morning at your local coffee shop along with a copy of your morning newspaper. These items may soon be available for purchase with a smart card. That's right: no bills or coins needed. Susan Weinstein, vice president for the online financial services group at Wells Fargo Bank, said the bank is bullish on smart cards. Wells Fargo recently completed a two-year beta test using the cards with two hundred of their employees who purchased minimally prices items at selected stores within a few blocks of the bank's headquarters in San Francisco's financial district. "The smart card try-out was a tremendous success," said Weinstein. "The cards are equipped with chips, so the transactions are literally from the chip in the consumer's card to the chips in the merchant's card. Security features are built in. There's no need for a billing process. No need for a PIN or signature, like when we charge items on our credit or debit cards. This direct transfer of electronic cash eliminates the heavy costs of processing, and provides a cost-effective service for the consumer." A similar trial using the smart card is now being conducted by Chase-CitiBank in New York City, using bank employees who live and work in the Upper West Side neighborhood of Manhattan. "The technology has been around for a long time," said Weinstein. "Wells Fargo and eight other banks are licensed to use Mondex Smart Card Strategies, originally developed in Europe, for use in the United States." Coming next: using smart cards on the Internet. Wells Fargo expects to try this service out before the end of the year, once again limiting it to bank employees only. "If it is successful on the Web," said Weinstein, "we believe it will revolutionize how we conduct electronic commerce." This latest development shouldn't come as a surprise for those who are familiar with Wells Fargo's commitment to online banking. The bank began exploring how to offer banking services through Prodigy and a direct dial-up system in 1989. In 1994, the company brought up its Web site, launching the first-ever Internet banking service in May, 1995. Today, Wells Fargo customers can pay taxes electronically. Early this year, the bank began experimenting with another service: electronic bill presentment and payment for customers to receive and pay their bills. The pilot program employs technology developed by Microsoft and First Data Corporation. "The way we obtain and process services on the Web is in a state of flux," said Weinstein. "At present, the handling of cash over the Web is an expensive proposition. The smart card makes it cost effective for all." Weinstein envisions a time when smart cards will be infused with multiple application chips for multi-purpose purchases and information access. "Think about the options," she said. "The card will be used for a cash application, a company identification card, to obtain important health care information-if you have a heart condition and need special medication in an emergency, for instance. The card will have your Internet access numbers for online accounts, even let you keep track of your participation in the loyalty program at your local coffee shop, you know, when you buy 9 cups of coffee, you get the 10th cup free. It will do all of this through a process of accessing data remotely in a secure environment." Smart cards are being eyed by the Mobil Corporation. Mobil gasoline stations through the United States are presently using a Speedpass electronic system, like those used by many tollways, to automatically charge fuel purchases to the credit card the consumer has selected. Speedpass was introduced in May, 1997. It is so popular, said Mobil spokesperson Jean Mitchell, that an additional 3,500 locations will be added by June 1. "We have over 1.42 million customers now," said Mitchell. "But Speedpass use is strictly limited to the purchase of gasoline. We're looking into how to use the technology to include purchases in our stores as well." So, when you make it down to your local coffee shop, it won't be long before you use your smart card to take care of the bill. Like credit cards before them when they were first introduced, these cards are experiencing a wait and see stage. But it won't be long before their use becomes more wide-spread and accepted and they, too, will flourish. Robert Israel is a freelance writer specializing in technology and communications.