Gartner Research

Visa e-Cash

Published: 14 July 2000

ID: G0090108

Analyst(s): Ellen P. Walsh

Summary

Visa Cash is just one form of e-cash used in the market today. It is targeted for cash purchases in the range of US$10-US$50, but is not designed to impose a specific stored-value limit. Each time consumers use Visa Cash for payment, the purchase is electronically deducted from the stored-value function and credited to the merchant's account. Standardization is a big issue in the stored-value world, and Visa has organized a coalition to back a Common Electronic Purse Specification (CEPS) to address it. CEPS is expected to pave the way for interoperable, cross-boarder use of stored-value smart cards, and Visa plans to convert its 8 million Visa Cash cards to CEPS standards no later than 2005.

Table Of Contents
  • Corporate Headquarters
  • Overview
    • Product Types and Features
  • Analysis
    • Common Electronic Purse Specification (CEPS)
    • Proton Interoperability
    • Marketing Plans
    • Wireless Initiatives
  • Pricing
    • GSA Pricing
  • Competitors
    • Mondex
    • Proton World
    • Europay CLIP
  • Strengths
    • Offers Several Security Options
    • Uses Existing Settlement Infrastructure
    • Offers Disposable and Reloadable Cards
    • Can Be Combined With Debit, Credit, and Multiapplication Cards
    • Strength of Visa Brand
    • Reduces Cash Handling Costs
    • No Person-to-Person Transfers
    • Physical and Virtual World Use
  • Limitations
    • Still Mostly in the Pilot Stage
    • Investment in Specialized Terminals
    • Fees for Low-Value Transactions
  • Datapro Insight

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