Exeter goes the distance with micro payments

The University of Exeter has developed new software that allows electronic cash payments over the internet for "pay as you go" distance-learning courses.

The system, developed by David Cannon from the university's IT Services, will enable electronic cash to be transferred directly from one smart-card holder to another via the internet and Mondex, without the need for third party verification or authorisation from a bank or financial institution. Mondex can be used as a smartcard electronic purse. The advantage of direct person- to-person transfer of Mondex value means that costs are negligible and the service remains inexpensive.

Laurie Burbridge, director of the university's IT Services, said: "This system has the ability to revolutionise distance learning as we will be able to deliver information cost-effectively to any student in the world and allow them to pay the fees in any way they wish, including by very small amounts."

"We can deliver this service irrespective of what currency they are using or the country in which they live."

Mr Cannon demonstrated the system by transferring a typical transaction value of Pounds 3 of Mondex electronic cash, via a smartcard attached to a PC, from the United Kingdom to New Zealand. This first test successfully showed the benefits for the university of developing a system that runs on a single global technology with multi-currency person-to-person capabilities.

Ron Clark, chief executive of Mondex UK, said: "Mondex has been involved with UK universities since 1996 and this announcement is a reflection of the significant contribution that universities are playing in the development of e-cash globally.

"This project represents a great example of the unique benefits of Mondex fulfilling an important role as a catalyst to provide a better education for students. These unique benefits make Mondex perfectly suited for remote delivery of cash over open networks like the internet."

Mr Cannon, who developed the software, said: "One of the first tests of the new system was to enable students and staff to make donations to the recent Comic Relief television appeal; it worked really well."

There are 100,000 students in the UK using Mondex cash on university campuses. Universities in Costa Rica, Israel, New Zealand and Hong Kong have also developed a Mondex infrastructure.

The university will develop a pilot study for "pay-as-you-go" distance learning in the autumn of 1999. Students will be able to study an online course and pay for it by inserting their Mondex card into a reader in a PC. The university's system can also be integrated with the web pages of any suppliers who can advertise their products or services and receive electronic cash payments immediately via smart card.

The system was developed as part of a project funded by the Joint Information Systems Committee (JISC) under its Technology Applications Programme.

The university cards are issued by NatWest and there is a well established partnership between the bank and the university. The university has been using Mondex since October 1996, with around 12,000 cards in circulation with students and staff. In addition to providing Mondex electronic cash, the cards also act as library cards, student election registration, access control devices, IT registration and identity cards.