Univision Prepaid Touts Free ATM Use

Univision Communications Inc. has started a media campaign to promote surcharge-free automated teller machine access for holders of its prepaid cards.

The New York media giant said it hopes the promotion will increase use of its MasterCard-branded prepaid card within the Hispanic community. Ben Psillas, the president of Cardtronics Inc.'s Allpoint surcharge-free network, said that, to its viewers, "Univision is more than just a media company; … consumers really trust what Univision advises" concerning financial services and consumer products.

Univision and Allpoint teamed up for the campaign, which began Jan. 31. It includes advertising spots online and radio and television commercials. Univision said it had to eliminate as many fees as possible to gain users and that this helped make Allpoint a partner.

"Many [Hispanic] consumers are not aware of how valuable these surcharge-free machines can be," said Scott Scovel, Univision's vice president of financial services. "We're very excited about new commercials to educate the public more about the value of these machines."

Anchoring the campaign is a TV commercial that depicts what appears to be a focus group discussing prepaid card fees. A "financial expert" then touts the benefits of Univision's card, and the commercial makes special mention of the free access to Allpoint's ATMs, which are deployed at 35,000 sites including 7-Eleven Inc. and Target Corp. stores.

The ATMs' deployment sites are a key to driving consumer interest in Univision's prepaid cards, Scovel said. Many Hispanic consumers visit 7-Eleven or Target stores at least once a week, he said. "These locations instantly mean something to them."

With the Allpoint machines already deployed, the companies think it will help increase interest in having and using the prepaid cards, said Psillas. Univision is marketing the partnership as "double free" because neither the card issuer nor the ATM owner charges the cardholder, he said.

"Anything that prepaid providers can do to reduce friction [with potential cardholders], the better off they are in gaining new business," said Jennifer Tescher, the president and chief executive of the Center for Financial Services Innovation.

Univision is to run the campaign across its entire media network, which includes television and radio stations in 50 cities with large Hispanic populations, including Los Angeles and New York. It operates the fifth-ranked national television network, reaching more than 95% of Hispanic TV households through its Univision Television Network.

The campaign also is to appear across the TeleFutura Network and the Galavision cable network.

Bancorp Bank, a subsidiary of Bancorp Inc. in Wilmington, Del., issues the cards, which people may order online or by phone. They also may load and reload their prepaid cards, free of charge, at tens of thousands of sites, including Western Union Co. and MoneyGram International Inc. stores, as well as places that offer Green Dot Corp.'s prepaid card. The minimum load is $20.

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