Firms to Build Electronic Cash Network

A group of companies--including Wells Fargo & Co., Chase Manhattan Corp., AT&T; Corp., Dean Witter, Discover & Co., First Chicago NBD Corp., MasterCard International and Michigan National Bank--is expected today to announce plans to create a U.S. electronic cash network. The companies purchased rights to develop and sell the Mondex system, developed by Britain’s National Westminster Bank. Mondex allows bank customers to electronically load cash onto smart cards--plastic cards with a computer chip--from automated teller machines or over the telephone. The cards can be used to make purchases from merchants equipped with special smart-card-reading terminals. In July, NatWest sold 49% of Mondex to 17 banks worldwide, creating Mondex International, a company that advertises the brand and ensures that the card can be used worldwide. On Nov. 18, MasterCard purchased the remaining 51%. . . . In a separate development, NatWest said it will slash up to 10,000 jobs in Britain, or 20% of its work force, over five years as it moves to automate more services.