However, the value of these savings may actually be the other way round in the long term. With chip cards, the majority of transactions are authorised by the individual chip in the card. Following chip implementation in France, less than 10 percent of transactions are authorised online. Another feature of chip card technology is the 'electronic purse'. These 'stored value' cards are intended to provide a convenient alternative to cash for low value transactions.
Monetary value is stored on the card as electronic data.
Phone cards are a simple example of these cards which are already in wide use. In the future, you will be able to use chip cards at many retail outlets and vending machines. Electronic purses are intended to hold local currency, although Mondex can already hold up to five different currencies at a time. Cards as cash As well as holding different currencies, Mondex allows you to transfer funds from one card to another. In the UK, Mondex is being piloted in Swindon, Exeter University and the University of York and Visa Cash is being tested in Leeds.