By Tim Sloane, Director, Prepaid AdvisoryService
The leading remittance companies, Western Union andMoneyGram, have clearly embraced the new business opportunity thatprepaid reload represents. As such, this announcement by MoneyGramInternational that it will be a reload location for Univision, isone more example of that trend. On the one hand, this trend addscompetition to the reload market (that includes Green Dot, Visa andMasterCard) which may drive lower prices to the consumer. On theother hand, it further fragments the reload market. Since 83percent of consumers that are familiar with reload have neveractually performed a reload (according to a recent MercatorAdvisory Group survey), fragmentation and the resulting confusionmay actually further delay reload adoption.
“MoneyGram International (NYSE:MGI), a global leader in thepayment services industry, today announces a relationship that willenable Univision MasterCard® Prepaid cardholders the ability toload their cards at approximately 35,000 MoneyGram agent locationsnationwide. The Univision MasterCard Prepaid Card is a prepaid cardoffered by Univision Communications Inc., the nation’s leadingSpanish-language media company. The relationship between MoneyGramand Univision brings together of the largest reload networks in theUnited States with one of the strongest brands for HispanicAmericans.”
“This alliance has the potential to reach more than 20 millionunderbanked Hispanics living in the U.S. today and equip them witha convenient and affordable alternative to cash,” said Greg Waltz,vice president and general manager of Payment Products atMoneyGram. “With Univision’s strong brand loyalty and MoneyGram’slarge number of reload locations across the country, such asAlbertsons LLC and CVS/pharmacy, the alliance will provideUnivision consumers with a convenient option for reloading.”