The "cashless" society moved a step closer to reality Wednesday, as Credit Union Central (CUC) of Saskatchewan introduced so-called smart cards to Western Canada.

About 270 CUC employees signed up with a pilot project to use the Mondex electronic cash card at the credit union's cafeteria on Albert Street.

"This cafeteria project, it may seem really small, but it is a historic event -- it's the second in Canada," said Greg Miller of Credit Union Electronic Transaction Services (CUETS).

"Mondex is trying to bill itself as being better than cash."

With the smart cards, the workers will be issued electronic cards containing a tiny microchip, which can load up to $500 in cash from their accounts at ACE Credit Union.

Every time a coffee, sandwich or other food product is purchased from Beaver Food Cafeteria, the price will be automatically deducted from the card's stored value of money.

A $16.10 transaction at the cafeteria Wednesday morning took less than 10 seconds to complete.

Special equipment operated by the merchant contains a smart card, which debits the consumer's account. The vendor can later deposit the money into a banking account.

Mondex International, a financial services firm partially owned by MasterCard, has been working this year with banks and credit unions on a full-scale project in Guelph, Ontario.

"A broad range of consumers are showing enthusiasm to it," said Marilyn Benson, manager of retail services for Guelph and Wellington Credit Union.

"They are using it as a cash replacement, especially for small purchases."

In Guelph, about 600 merchants, including the local transit service, accept the smart card.

Aside from loading their cards with funds at the local bank or automated teller, comsumers in Guelph can transfer money from their bank accounts to the card using a special telephone.

A separate wallet-sized device lets people transfer cash between two card-holders, a portable device that's handy for taxi or pizza delivery drivers.

A special cash tracker, which looks like a calculator, comes with each smart card and retains its balance. The tracker also allows consumers to "lock up" their cards with a special password, preventing people from stealing money in case the card is lost.

Bev Maxim of CUC notes that all purchases are totally anonymous and aren't traced by the banks or credit unions.

"Once the dollar value is loaded, there is no way to track how the money is spent," she said. "It's totally private."

If the pilot projects are successful, it's expected the Mondex card will be rolled out on a national basis in late 1998 or 1999. The Regina test will run through 1998.