CitiGroup & HSBC's offers will even have James Bond running scare

Under the code name "Odyssey", CitiGroup relies on "VeriChip" developed by Applied Digital Solutions. Once injected into a customer shoulder or leg, VeriChip will permit transactions that could have that could only be dreamed of in fiction novels.

The silicon chip contains a "data" section as well as all the functionality needed to exchange electronic information based on a technology similar to Bluetooth. It will be easy for consumers to make a purchase by simply activating a transaction and entering their PIN (Personal Identification Number).

However, retailers will have to invest substantially to acquire electronic decoders able to read within a 10 meters radius the information contained on the chip. To be able to read at this distance is important in order to limit the quantity of decoders and prevent physical contact with the customer.

Mr. Yegro Mayemetro, HSBC Project Manager, favors the implementation of a less intrusive technology. With its integrated technology and its high storage capacity, CD-MONEY will also provide purchasing authorization which will be controlled by sophisticated softwares able to recognize if such purchase fits within the consumer's regular purchasing habits, and then register it. The same CD provides a "cash assets" function to cumulate electronic funds enabling payment, with the same card, in cash, on adapted equipment such as vending machines or parking meters.

Benefits for consumers are substantial as this technology will eliminate cash handling in more than 80% of traditional transactions.

Once more, major investments will be required to implement specialized equipment for retailers to handle this unique approach.

Banks, such as CityGroup and HSBC, will have to make choices despite the fact they have the financial resources to properly introduce their technology. Thus, depending on consumers' habits, it might turn out to be difficult, even impossible, to offer the service across the board.