The Mondex Smartcard is a service that acts as an electronic cash system or a virtual wallet. It was developed in 1990 by the National Westminster Bank of England. Later on, Mastercard International acquired controlling interest over the Mondex Smartcard.
The design of the Mondex Smartcard has been structured to provide convenience through advanced technology. Users can transfer funds to the card via electronic processes. Generally, the Mondex Smartcard can accept any amount of money, although certain Mondex Smartcards may have a specified total cash value limit. When using this type of smartcard, individuals do not have to carry money while shopping or dining. The Mondex Smartcard also lets users pay for products or services through an electronic payment system.
The Mondex Smartcard presents additional features which are not present in other similar services. It allows the user to make direct card-to-card transfers. This is in contrast to credit or debit cards that require communication with the bank to complete the transaction. The technology behind this card-to-card transfer capability is the built-in microprocessor contained in each Mondex Smartcard. To increase the card’s security, it makes use of advanced encryption methods and a tamper-proof hardware design. Transaction costs required by Mondex Smartcards are relatively lower. This is because it is capable of performing offline transactions and does not require expensive network communications.
The Mondex Smartcard is supported by numerous banks. Some of these banks include the National Bank of Canada, Canada Trust, Toronto Dominion Bank, and Bank of Montreal. A number of newer banks are also starting to include the Mondex Smartcard in their services.