MasterCard announced that they will acquire 51% of Mondex International and adopt Mondex technology as its strategic chip platform. This move will accelerate the implementation of the Mondex stored value card worldwide, and promote the establishment of a single global standard for chip-based payment products. H. Eugene Lockhart, president and CEO of MasterCard said that in the future, the need for chip-based cards will be driven by the need for better security. The main application of the Mondex operating system has been the stored value card, but in the future, the technology will support other applications including debit/credit stored value cards. Michael Keegan, CEO of Mondex International added, "Today's news means that Mondex will be in more pockets and purses in more countries, more quickly than we had previously planned”. Terms of the Agreement Mondex International will be 51% owned by MasterCard International.The global founders of Mondex International will own the remaining 49%. Mondex International will continue to have its own Board and will continue to be based in London. The seventeen international organizations which originally formed Mondex in July 1996 will continue to own and directly control all commercial activity of their regional franchises. All MasterCard members will have the right to apply to use the Mondex stored value product in the regions where they operate. MasterCard will also participate in the development of the Mondex platform for other chip-based products. As a result of its full endorsement of the Mondex card, MasterCard will not invest in any other electronic purse products . The Mondex Stored Value Card is considered the best of the various electronic cash smart card products in use around the world. Since July 1995, Mondex has been in daily use in a public pilot in Swindon England where some 13,000 people can now use their cards in some 700 retail outlets. Other such programs are now underway in Hong Kong and Canada. In San Francisco, Wells Fargo is conducting a trial of Mondex covering 22 locations and involving 900 employees. The future of money is here! Mondex was established as an independent payments system on July 18, 1996 by 17 major international organizations from North America, Asia/ Pacific, Australia and Europe: NatWest and Midland Bank PLC ; The Hong Kong and Shanghai Banking Corp. Limited (Hong Kong and 12 other Pacific territories); Canadian Imperial Bank of Commerce and Royal Bank of Canada (Canada and most of the Caribbean); Australia and New Zealand Banking Group Ltd., Commonwealth Bank of Australia, National Australia Bank Limited, Westpac Banking Corp. (Australia); ANZ Banking Group (New Zealand),Countrywide Banking Corp. LTD, the National Bank of New Zealand LTD, ASB Bank Limited and (New Zealand), Wells Fargo Bank and AT&T Card Services (U.S.). The Mondex smart card uses a secure microchip to store cash value as electronic information rather than notes and coins. It also provides an efficient means of money transfer between individuals. Most prior schemes required a computer and a phone hookup to transfer funds .The Mondex system makes phone lines unnecessary and soon even the computer will be removed from the transaction. Smart Money, Indeed!