The Value of Mondex
Mondex represented rather different value propositions for customers, retailers, and banks.
The Customer Value Proposition
Mondex sold the concept to Swindon consumers based on convenience, control, flexibility, and security. A promotional video praised the elimination of needed change for the car park. The cards PIN controlled locking mechanism and the ability to transfer money from one individual to another were highlighted, as was the ability, using the optional wallet, to examine the last ten transactions. The ability to use the phone to securely download a cash equivalent value was another strong selling point.
Mondex had initially proven to be more popular with women than expected, and was particularly appealing to people who used debit or credit cards. The initial focus on Midland and NatWest's own customers as well as a Bank of England requirement that card holders have bank accounts, limited penetration in some segments. Mondex had used its relationship with the local football club and various public gatherings to promote the scheme to a wider segment of the Swindon populace. Still, the Bank of England’s requirement for cardholders to have a bank account had triggered some complaints from union officials that Mondex was encouraging a two class society.
Some retailers already wanted to sell "disposable" Mondex cards , similar to telephone calling cards. Two nondisposable cards had been approved by the Bank of England. The "linked card," allowed its user to transfer money between a bank and the card. For the Swindon test, the card's value was limited to £500 per day and was technically limited to £2,000. The "associated card" could only be used to make payments or to receive Mondex value from other cards. Upon initial receipt, Mondex cards were always of the latter type. Only when the user registered the card and picked up his or her pin number was the card linked. Users of the Mondex wallet received two additional associated cards. A majority of cards were linked.