Electronic cash: a qualitative assessment of its adoption

Abstract

Examines the nature of a relatively new financial service, electronic cash. A qualitative study of students’ use of a specific form of electronic cash, namely Mondex, was undertaken. Attitudes and opinions were sought and the results presented within a theoretical framework of likely adoption. It was found that all students compared the performance of electronic cash with the traditional form of cash. A number of problems were encountered by students in relation to security, speed and complexity of use, although in some situations it was a preferred alternative. Concludes that these issues will need to be addressed but that electronic cash may have advantages in certain situations and that marketing effort should be concentrated on identifying niche opportunities or bundling appropriate services onto the card to provide a relative advantage for increasingly discerning consumers.