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Very interesting article. Would like to see more on the Hispanic market as
February 10
Univision Communications Inc. believes a new media campaign to promote surcharge-free ATM access for holders of its MasterCard-branded prepaid cards will increase card use within the U.S. Hispanic community.
The New York-based media giant and Cardtronics Inc.’s Allpoint surcharge-free ATM network teamed to launch the campaign, which began Jan. 31. The campaign includes advertising spots online and radio and television commercials.
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 locations including 7-Eleven Inc. and Target Corp. stores.
“Many [Hispanic] consumers are not aware of how valuable these surcharge-free machines can be,” Scott Scovel, Univision vice president of financial services, tells PaymentsSource. “We’re very excited about new commercials to educate the public more about the value of these machines.”
Where the ATMs are deployed is key to driving consumer interest in Univision’s prepaid cards, Scovel says, who says many Hispanic consumers tend to visit 7-Eleven or Target locations at least once a week. “These locations instantly mean something to them,” he adds.
Indeed, Univision conducted focus groups and found consumers have an affinity for certain retail locations. With Allpoint machines already located in such locations, the companies believe it will help increase interest in having and using the prepaid cards, Ben Psillas, Allpoint president, tells PaymentsSource.
The focus groups also found fees were a major barrier to consumer adoption. Univision believes it had to eliminate as many fees as possible to gain new users, and that helped forge a partnership with Allpoint, Psillas says.
Univision is marketing the partnership as a “Double Free” ATM experience, as neither the card issuer nor the ATM owner charges cardholders a fee, Psillas explains.
“Anything that prepaid providers can do to reduce friction [with potential cardholders], the better off they are in gaining new business,” Jennifer Tescher, president and chief executive of the Center for Financial Services Innovation, tells PaymentsSource.
The brand trust between Univision and its viewers also helped Allpoint become involved, Psillas says. “Univision is more than just a media company,” he says. “Consumers really trust what Univision advises” in terms of financial services and consumer products.
Univision will run its campaign across its entire media network, which includes local television and radio stations in 50 cities with large Hispanic populations, including Log Angeles and New York. It operates the fifth-ranked national television network in the United States, reaching more than 95% of Hispanic TV households through its Univision Television Network.
The campaign also will appear across the TeleFutura Network and the Galavision cable network.
Bancorp Bank, a subsidiary of Bancorp Inc. in Wilmington, Del., issues the cards, which consumers may order online or by phone. Customers may load and reload their prepaid cards, free of charge, at tens of thousands of sites, including Western Union and MoneyGram stores and places that offer the Green Dot prepaid card. The minimum load requirement is $20.
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