KeyCorp signs record supply deal with Mondex

KeyCorp has scored a deal with Mondex Philippines to supply a record-batch of Smartcard technology to the Mastercard franchise.

The e-commerce and point-of-sale (POS) technology specialist will supply 500,000 units of its Smartcard system to Mondex at around $10 to $15 per unit.

The order was the world's biggest single purchase of Smartcards for Mondex, according to Michael Thomes, CEO of Keycorp, generating $5 to $10 million in profit for KeyCorp's initial supply to Mondex, a company spokeswoman said.

The payment solution will incorporate Keycorp's MULTOS multi-application Smartcard operating system, the Mondex purse (a smartcard holding electronic memory on which banks load funds), and a loyalty scheme providing information on reward accounts, redemption catalogues and promotions.

Mondex, whose Australian customer base is comprised of top retail banks like National Australia Bank, Westpac, ANZ and the Commonwealth Bank of Australia, will act as a reseller in the Philippines, initially targeting large fast food chains, traditional e-tailer merchants and retailers of consumer goods with the solution, according to Brian McKeon, KeyCorp's Smartcard product manager.

KeyCorp signed the deal with Mondex on the grounds that it was a "clever" business partner. "The Mondex guys are quite clever and they've come up with few twists on the customer loyalty side, but not just in terms of feedback to the merchant, but distribution channels," McKeon said of the deal.