Smartex: An Electronic Cash System

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Mercantile Bank of Australia, together with six other Australian banks, acquired a license to issue Smartex, a smart-card-based electronic cash system, in Australia. Australia had been a popular country for conducting smart-card trials because it possessed a sophisticated telecommunications infrastructure and a highly urbanized population that had demonstrated keenness toward adopting new technologies. The case examines the process used by Smartex licensees to develop and launch Smartex in Australia. Also, the second-generation Smartex chip, which has a multifunctional capability, will soon be available. How should the Smartex licensees promote this new chip to make use of its enhanced capability without confusing consumers?
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