MasterCard marketing recently focused on high income individuals as part of their new marketing campaign to attract high credit consumers. The company hopes to strengthen the MasterCard brand; and launched two programs that will extend promotions to their high-net-worth clients.
The MasterCard World Elite program offers their most affluent credit card holders rewards such as concierge service wherever you go and entry into the PGA Golf Tour. Also, MasterCard plans to roll out its Priceless Cities program this summer. The program will debut in New York City.
In New York, MasterCard holders can enter special private events as long as they have their MasterCard-branded debit or credit card handy. If the pilot is successful, MasterCard will showcase the program in other cities across the nation.
“It’s a wide-ranging campaign that goes from television advertising to print to outdoor to make sure that consumers that live in New York and want to enjoy what is available here can really get access to it,” according to chief marketing officer at MasterCard, Alfredo Gangotena.
MasterCard’s new marketing strategy revolves around building a consumer base that values electronic payments over normal check and cash payments. Currently, 85% of global transactions are completed with cash or a check.
This gives MasterCard a lot of marketing leeway when it comes to attracting customers. MasterCard makes its money by getting consumers to make transactions with one of their branded cards which are distributed through bank partnerships.
In addition to marketing to its richer clients, MasterCard will also spend some time marketing to its lower income clients. The credit card issuer also plans to unveil a large push for its prepaid credit card department.
Usually, prepaid credit cards are directed towards consumers who have very low income, no credit history, no access to a bank, or have suffered a severe financial setback such as credit card default or bankruptcy. Prepaid credit cards can be a viable option for these consumers.
Also, earlier this year, MasterCard paired up with discount retailer, Wal-Mart to sell a MasterCard-style version of the Wal-Mart MoneyCard. The Wal-Mart MoneyCard has already been branded for MasterCard’s competitor, Visa. All in all, MasterCard is doing well for themselves. They just bought Travelex Holdings Ltd. in April.
The purchase cost the credit card issuer about $481 million.
Travelex is a prepaid management company, and will aid MasterCard in the growth of their prepaid credit card department. Under MasterCard, the new company will be called Access Prepaid Worldwide. Furthermore, the credit card issuer has begun realizing the potential of their other markets like mobile payments and will begin marketing those as well.