MasterCard moves into the SMS text messaging arena with marketing consultancy services. MasterCard International is launching to the UK financial and retail sector its consultancy service on SMS text messaging, which will focus on permission-based SMS marketing campaigns. The service will help banks and retailers reduce the cost and implementation cycle of SMS campaigns, as well as guaranteeing a high quality of SMS service".

MasterCard is also launching the financial industry's first "code-of-practice" on the use of SMS marketing. This "industry first" has been welcomed by marketing and telecom specialists and will provide UK banks with guidelines in their communication with cardholders on obtaining their permission, agreeing message delivery times and types of text-messages, e.g. alerts/information/coupons.

Having identified a gap in the burgeoning SMS market, the MasterCard SMS Programme is designed to help banks and retailers best manage creative SMS marketing with cardholders. In response to demand from the financial sector to use mobile communications as part of their customer service offer, the service is being rolled out to UK and European banks this year.

Brian Morris, Head of E-Business, MasterCard Europe said: "Used correctly, SMS can be deployed within a marketing campaign as an effective, innovative and fun vehicle. It not only helps to engage people but also builds the relationship between cardholder and their bank. It is a fast, convenient and personal way of communicating to consumers in a fast and impersonal world."

MasterCard's work with a number of European banks in developing the SMS programme revealed above-average cardholder response rates and high card activation and card usage in SMS campaigns. Moreover our research showed that SMS is an effective new marketing tool in the financial sector that can be used to compliment other channels such as the PC , Internet and traditional market channels.

MasterCard Case Studies

The Coca-Cola light MasterCard Competition from Postbank in The Netherlands; SMS is being used in a Coca-Cola light competition campaign where one hundred MasterCard cards each worth €10,000 have been entered into a prize draw. Millions of limited edition Coca-Cola light bottles have been distributed throughout the Netherlands, each with a unique code. To see if they've won, consumers had to check their unique code by sending an SMS message or through a special feature website. The campaign involves above and below-the- line marketing activities, with extensive poster and mailer advertising support. Customers can also apply for a limited edition Coca-Cola light MasterCard from Postbank. The campaign kicked off on the 3rd March 2003 and will run until the end of August 2003. The first results after just a few days have already surpassed initial expectations.

BBL and the Coca-Cola Light card in Belgium; BBL (Banque Bruxelles Lambert) in Belgium used an SMS marketing campaign to support the activation of their "Coca-Cola light" branded MasterCard credit card. With the majority of the cardholders in their twenties, SMS text messaging was deemed the right 'fit' and also matched the "fun" look of the card. Competitors using SMS to send in their entries to win an all-expenses paid 'party-weekend' in Barcelona. BBL achieved a nine percent response rate to their campaign and record-levels of card activation. A series of SMS text messages also played an important role in educating the cardholders and helped to increase awareness and card usage. To qualify for entry, cardholders had to use their "Coca-Cola light" MasterCard card at least once, register by SMS and also use SMS to send their competition answers.

Christine Guirriec, product manager, E-business, MasterCard Europe said, "Loyalty and savings programmes have demonstrated the win-win nature of using an SMS. But imagine an SMS message that actually tells you that you can get a discount in a store - just by showing the message to the sales clerk. It's probably the most immediate and personal coupon you can get.

"For marketers, it's not only modern and innovative - but we know that it works. We have already seen high response rates in marketing campaigns and believe the use of SMS will grow. We've formalised our approach through our consultancy programme and can now offer our know-how as a unique offering for financial institutions to develop as they wish."

About MasterCard International

MasterCard International has a comprehensive portfolio of well-known, widely accepted payment brands including MasterCard, Cirrus and Maestro. With approximately 25,000 MasterCard, Cirrus and Maestro members worldwide, MasterCard serves consumers and businesses, both large and small, in 210 countries and territories. MasterCard is a leader in quality and innovation, offering a wide range of payment solutions in the virtual and traditional worlds. The MasterCard award-winning Pricelessâ advertising campaign is now seen in 96 countries and in 45 languages, giving the MasterCard brand a truly global reach and scope. With more than 30 million acceptance locations, including over 820,000 MasterCard/Maestro/Cirrus ATMs around the world, no payment card is more widely accepted globally than MasterCard. For the year ended December 31, 2002, gross dollar volume exceeded US$1.14 trillion.

MasterCard can be reached through its website at www.mastercardinternational.com.