MasterCard International said four of Australia's major banks, plus a British bank with a presence there, would begin a stored value chip card pilot in the fourth quarter.
A stored value feature lets a cardholder load value that's equivalent to cash onto a card, and use the card for small-ticket purchases. A microchip embedded in the card calculates each transaction.
Australia and New Zealand Banking Group, Commonwealth Bank of Australia, National Australia Bank, and Westpac Banking Corp. - representing more than 70% of the credit/debit market in the country - will be issuing the enhanced chip cards.
And Standard Chartered, a British bank with locations throughout Asia, will issue the smart cards to its cardholders living in or traveling to Australia's capital city, Canberra.
Unlike other stored valued cards under development, which are disposable, MasterCard said the Australian stored value cards will be linked to existing credit and debit card accounts.
Diane Wetherington, MasterCard's senior vice president of chip card marketing, said the pilot was best served in Australia because the population is quick to embrace new technology.
"Consumers (here) are already comfortable with debit and credit on one card, and debit is widespread," said Ms. Wetherington in a telephone interview from MasterCard's annual meeting in Sydney. "In terms of card products they are a very advanced market."
Recently, Visa U.S.A. announced a smart card stored value venture to be tested at the 1996 Olympic Games in Atlanta by three southeastern banks.
Separately, Delaware-based Electronic Payment Services Inc., owner of the MAC network, said it will conduct a smart card pilot in Wilmington in early 1996. EPS is owned by five superregional banks.
Ms. Wetherington downplayed the significance of the competition. "We're interested in exploring consumer usage in everyday life as opposed to event-focus usage."
Gasoline stations, convenience stores, and specialty retailers are among the merchants who will be accepting the stored value cards during the pilot.
Cardholders will be able to load cash value onto the chip card from a participating ATM, and use it at the participating merchants.
