In part 1 of this post I discussed some of the interesting points raised by Red Gillen of Celent concerning the card-to-card transfer opportunity many program managers pursue. In this post, I'll share the attributes of a program I personally worked on, with an emphasis on strategies expected to address and/or eliminate many of the social, infrastructure and regulatory challenges faced.
For starters, here is the actual program description submitted to MasterCard for approval (MasterCard issued approval on 05-08-06):
Program Overview
The Allende Coahuila Prepaid MasterCard is a two card set Program designed to provide former residents of Allende Mexico now living in the U.S. a means to transfer money from the U.S. to family and friends in Mexico. The primary card will be a MasterCard branded debit card with the secondary card being a Cirrus/Maestro card for ATM cash access only. Card sets will be mailed directly to verified consumers by a certified MasterCard vendor. As a personal spend card, the primary card in the U.S. can be loaded via Payroll Direct Deposit and any approved retail or RPPS payment center.
Target Audience
The Allende Coahuila Prepaid MasterCard Program will target specifically residents of Allende Mexico and their families living in the U.S. who currently transfer money on a regular basis to family members.
Marketing Methods
Unlike traditional marketing methods associated prepaid card programs, the Allende Coahuila Prepaid MasterCard will take a reversed approach in that we will enlist the secondary card recipient in Mexico to influence the sale of the primary card to a U.S. Resident family member. We have formed a relationship with the city of Allende Coahuila, Mexico to assist with the promotion and marketing coordination designed to identify the consumer currently receiving money transfers.
The City of Allende will initiate various promotional activities designed to generate a response from residents who are currently receive money transfers from family or friends living in the US. In the promotional message the consumer will be instructed to visit the City Hall where city staff members will educate the consumers on the benefits of receiving money transfers via a card based program versus Western Union or Money Gram. We will then encourage the Mexican resident to contact their family member in the U.S. to promote the card and provide MSP contact information for follow up sales.
Marketing tools Include:
- Radio Spots
- Flyer Distribution
- Posters
- News Paper Ads
Sales, Enrollment and Distribution Process
- Allende resident responds to a promotional radio, newspaper or flyer.
- The resident is instructed to visit the City Hall to learn more about the program.
- City staff members educate the resident on the benefits of the debit card program on location and are encouraged to contact their family member in the U.S. on the spot.
- If the family member is contacted at that moment they are introduced to the Allende Prepaid MasterCard program and are instructed to contact MSP to order their card.
- The call is fielded by an authorized MSP TPP contracted by (issuing bank name omitted) to receive phone applications. All calls are recorded for security and regulatory purposes.
- All necessary information to verify the cardholder in accordance with the U.S. Patriot “Know Your Customer” regulation is collected for processing.
- Upon successful verification and OFAC screen the cardholder information is processed and sent to a certified MasterCard vendor for card fulfillment.
- One personalized MasterCard debit card and one non-personalized Maestro/Cirrus card is mailed directly to the cardholder with a U.S. address.
- Once the card is received by the cardholder they are instructed via an instructional insert to call the IVRU to register and activate the card, and select their PIN.
- The secondary card is then mailed to the Mexican resident by the primary cardholder for cash access only.
In part 3 of this post, I'll line up the challenges and results. Stay tuned...
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