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A recent agreement between MasterCard Worldwide and Univision Communications Inc., the nation's largest Spanish-language media company, potentially could change the way promoters market prepaid services to Hispanics in the U.S., according to one industry observer. The two companies last week announced a strategic partnership that involves cobranded gift and general-purpose prepaid cards scheduled for rollouts in the first quarter of 2010. Univision's large media network, which includes local television and radio stations in 50 cities with large Hispanic populations, will help MasterCard to promote the advantages of prepaid services to a large segment of a financially underserved population, says Rachel Schneider, a director at the Chicago-based Center for Financial Services Innovation. MasterCard marketers have "a platform [in Univision] that enables them to market the cards in an entirely new way," she says. Besides television and radio commercials, Univision sponsors live events during which MasterCard also could have a presence and market the cards, Schneider adds. Univision's brand awareness with the U.S. Hispanic population is the primary reason MasterCard partnered with the media giant, Laura Kelly, MasterCard senior vice president of global prepaid solutions, tells CardLine sister publication ATM&Debit News. "Based upon Univision's mission to empower, inform and entertain the Hispanic community, they recognize, better than anyone, the importance of empowering Hispanics in their daily lives," Kelly says. Univision has not revealed a fee structure for the cards, but Kelly says Univision "is committed to following industry best practices to ensure its community can count on safe, affordable and reliable prepaid card products." Wilmington, Del.-based The Bancorp Bank will issue the cards. MasterCard did not reveal who will process the transactions.
