Darwin's theory of evolution caused quite a stir and E-cash, the next step in the evolution of money, seems to be no exception¡K.

Imagine a world with no bulky change rattling in your pockets and no crumpled notes to count; a world where coins are only found in collectors' drawers and paper money on a Monopoly board ?you have entered the world of electronic money.

Engineers at Spectra Technologies, a Hong Kong firm, established just 5 years ago, have been working hard to make this prospect a reality. The result of their efforts? Four major awards in three consecutive years!

Last month Spectra scooped two awards, including the top honour, in the 1998 Hong Kong Awards for Industry. The winning products were the Electronic Money Acceptor (EMA), which received the top award in Consumer Product Design, and the Universal Electronic Money Manager (UEMM), winner of the CMA Machinery and Equipment Design Award.

Together they open up a whole new world of flexible applications for the universal acceptance of electronic money. Noel Cheng, Managing Director and founder of Spectra Technologies, takes us through their creation.

Your flexible friend?
EMA is a non-desktop electronic money collecting machine that can be connected to the Electronic Cash Register System and also supports non-contact smart card applications. Cheng describes it as "a universal, self-service, E-cash accepting device." How does it work? "Consumers who want to pay for goods and services using E-money simply insert their card into the card slot, the terminal will debit a sum from the card and credit the merchant's account in an appropriate way depending on the type of card inserted, " explains Cheng.

Sounds simple, but is it viable? Well, the top guys at Mondex and VISA think so. EMA has already passed the stringent certification process of Mondex International in London as well as VISA International in Denmark. It concurrently accepts all kinds of electronic money, from Mondex and VISA Cash to proprietary E-cash (for example bonus points on the chip). Although the methods of collecting money differ from place to place and industry to industry, EMA is designed for flexibility so it works for everyone.

"Unlike conventional counter-top E-cash terminals, EMA is totally self-service. It's compact, alloy casing design allows it to be installed in those areas that cannot be covered by conventional terminals," says Cheng.

So, potentially you could soon find the EMA being used to collect fares on all kinds of public transport; collecting admission charges at public facilities, collecting charges at car parks; at the supermarket; and in retail stores.

The benefits of EMA are clear for both customer and proprietor: no more searching for small change; error is significantly reduced; no operators are required to facilitate transactions; and most importantly, since transactions involve no real cash, the EMA eliminates the danger of theft or embezzlement. "Self-service type E-cash terminals are more acceptable to retailers because the payment operation is greatly simplified; the consumer will feel more comfortable actually doing the transaction by themselves; and banks will welcome the concept because terminals have to be installed at eye-catching locations, which indirectly promotes the awareness of E-cash and brand names," explains Cheng.

Its design concept integrates ergonomics, aesthetics, convenience, speed and self-service. The machine is compact and stylish yet highly practical ?encased in protective alloy casing it can be installed in any indoor or outdoor location. Other design features include: an optional control unit that allows the EMA to charge according to distance, class or time; and an optional printer to issue receipts for customers. But more than this Cheng explains that, "EMA has been designed to be used as a strategic tool for banks to promote the application of E-cash."

"Our business is to design, develop, manufacture and market Electronic Funds Transfer devices and systems for processing card based transactions between points of payment and banks. The products we create can not only fulfil, but stimulate demand," says Cheng. "The high competition between the banks (our direct customers) will bring in sales almost automatically."

And, so it seems that Cheng is a man with all his bases covered. Thinking ahead is vital for any company to keep a competitive edge and, evidently, Spectra are always that one step ahead of the game. As electronic money replaces banknotes and coins, there will inevitably be a demand for complementary electronic financial services. This is where the Universal Electronic Money Manager comes in to play. The UEMM is designed to perfectly complement the EMA.

Any time, any place
The UEMM incorporates a host of functions essential for electronic money. It enables users to upload and download value and bonus points, check balances, tally bonus points and review transaction records of Mondex, VISA Cash or other proprietary electronic purses.

Basically, the UEMM provides all the functions currently supported by ATM machines. So what makes it so special? Well, for a start there are no banknotes, ensuring safety and security. Like the EMA, its design is compact and weatherproof, so it can be installed at all consumer hot spots ?supermarkets, department stalls, bus stops and cinemas. In addition, the UEMM functions as a self-service payment terminal to pay bills for credit cards, mobile phones, utilities, taxes, insurance and so on. So, with the UEMM banking services become ultra convenient, travelling to you instead of vice-versa.

"To make an E-cash scheme successful, one of the key factors is to bring convenience to users," states Cheng. "The banks, when they first introduced the E-cash scheme, invested huge amounts of money and resources in installing thousands of terminals in retail stores where there were already other means of electronic payment available. Also, the consumers can only charge up their cards through some ATMs and branches. The consumers see little benefit of using E-cash in these environments and they lose motivation; therefore usage is minimal. We came up with EMA and UEMM to compensate these insufficiencies."

So the UEMM and the EMA complement each other to ensure convenience for consumers. While the EMA ensures spending convenience, the UEMM, installed at banks and other locations, puts electronic money into the hands of consumers when and where they need it. Their success in the market place could help bring Hong Kong into the era of electronic money.

Testing ground
Hong Kong has launched several smart card schemes over the last two years, including Octopus, Esso, Mondex and loyalty programmes such as Options. "The public is already aware of what electronic money can bring to them. Promoters of international E-cash schemes select Hong Kong as one of the first world-wide commercial launch sites, owing to the fact that the population density of the city is extremely high and people adopt new technology easily," says Cheng. "Therefore, Hong Kong is regarded as an excellent test bed for new financial products."

Naturally, the first pilot application for EMA will take place in Hong Kong. The EMA will be installed in mini buses accepting Mondex as a means of payment. Whereas the UEMM will be piloted in China under a project initiated by the China Construction bank. The UEMMs will be installed in the Guangzhou MTR ticket vending machines.

While the evidence is all mounting in favour of electronic money, how long is it really likely to take for cash, as we know it, to become obsolete? "Our society will not become cashless overnight," says Cheng. "E-cash is generally accepted by the public in Hong Kong; how fast it will become a natural means of payment will depend on their habits. If E-cash brings people more convenience and more benefits than paper money, it is more likely to be used habitually," he explains. "Hence, the strategy of E-cash issuing banks will play an important role. I believe cash will coexist with electronic money for a couple of generations ahead, but the trend can never be stopped. As technology advances, its scope can only be limited by imagination."

Designing for the future
Spectra are one of very few local companies willing to design technological products to meet internal demands. Most of the electronic devices we use in our everyday lives are imported. Cheng's philosophy, which drives the success of his company, is simple: "As engineers we have a responsibility to design high quality products and services that satisfy the domestic market. We need to change consumer's perception of Hong Kong electronic products being inferior, and we must start to change it locally."

Spectra's commitment to product innovation is remarkable. Their hi-tech designs have made them world leaders in electronic transaction technology.

In fact, while you may not have heard the name, the chances are you use their products regularly. Every time you use your credit card or make an EPS payment, you'll probably be using their S9600i the world's first cordless electronic transaction terminal that can handle both English and Chinese display. The S9000i is also the first to integrate the functions of credit cards and debit cards in one terminal and happens to be the choice of over 90 percent of local acquiring banks - talk about the lion's share of the market!

But that, as they say, is not all. You probably pay your utilities bills at Spectra's Payment Express Terminals (PET), buy movie tickets from their Universal Automatic Ticket Vending Machines and maybe even book public golf facilities via their Interactive Vending Terminals. And, judging by the results so far, it looks as though UEMMs and EMAs will become equally indispensable for our daily convenience in the not so distant future.