For decades, they relaxed in the knowledge that barriers to entry, cumbersome regulations and high start-up costs would keep talented upstarts away. Software giant Microsoft is trying to get in on the action by developing its own system for global financial transactions. As part of its grand scheme, Microsoft is also working with credit card companies Visa and Mastercard to establish standards for purchases on the Internet. Another potentially lucrative sector involves a palm-size device called the smartcard. Equipped with a microprocessor, the card will be able to store electronic money.
Some versions are already in the works.
The drive to electronic banking may be bumpy. Critics worry about how secure the system will be against hackers. It may also make it easier for tax evaders and money launderers to move funds stealthily around the globe. Saveri, who notes people had similar worries when credit cards were introduced, is confident problems will be resolved as the system comes into widespread use. And that day may be just around the cyber block.