By Polly Raymond, 1 July 1998 09:15
NEWS Visa is set to push forward a European standard for electronic purse applications. The finance giant claims the standard will integrate a wide variety of epurse initiatives designed to replace physical money with smartcards. But the move has sparked controversy in the industry. A spokesman for rival Mondex attacked Visa for being arrogant enough to assume the standard will be taken on globally. He added: "The standard initiative is Visa's attempt to camouflage its late arrival on the epurse development circuit." Mondex has its own set of standards for epurse applications. However, Visa's standard is supported by ZKA - the German banking industry association - and Sermepa, which is the technology arm of Visa Espana. A spokesman for the company claimed the move has received backing from much of the European banking community. Simon Bailey, spokesman for ecommerce software developer JCP, said: "This battle for standards ownership will be ongoing because the winner stands to gain a lot." He described smartcard and application development as a "primordial soup of standards, business plans and commercial interests". The only way things can move forward, Bailey claims, is if the whole banking industry works as a unit. "But this looks unlikely at the moment," he added. Bailey offered his advice to IT directors wishing to plan for electronic cash: "Be flexible and practical and ignore the standards for the moment. And, most importantly, don't go to a consultancy which will set out a five-year corporate plan - IT directors must act now."
In order to post a comment you need to be registered and logged in.
Log in or create your silicon.com account below