A whole new premium world of MasterCard

MANILA, Philippines - There are very few things that money can’t buy  and one of them, actually, is the security of not having to carry cash around. Imagine how commerce would be in a world where the credit card wasn’t invented and people actually had to pay cold cash for purchases like a flat-screen TV, a high-end designer bag, or a laptop. Our wallets would sure be a lot bigger!

Seriously, commerce perhaps wouldn’t have thrived as much as it did in the past century and consumers would get only what they pay for  no reward points that give you free travel, free appliances and gadgets, and hotel and restaurant perks. 

In the Philippines, more and more people are relying on cashless transactions  while earning those extra bonuses that would have cost a lot in the past.

MasterCard Philippines country manager Poch Villa-Real knows this by heart as he has seen the volume of credit card transactions rise over the past decade. Today, it’s no longer uncommon to see people paying for a cup of designer coffee with their plastic.

“MasterCard is at the heart of commerce,” says Poch. “While the public generally knows us as a credit card company, MasterCard is more than just credit cards. Think about it  who provides a global and local reach that connects stakeholders any time and any place in the world, whether they’re merchants, cardholders or banks. In addition to a global payment network coverage, our customers and their customers benefit from MasterCard innovations that help grow business value and end-user convenience. In the Philippines, MasterCard is at the forefront of innovation in electronic payments, whether by through leading-edge technology such as chip and contactless payment cards or card programs that suit lifestyle and demographic trends.”

Discover great privileges and rewarding expereinces that go beyond borders with your Premium MasterCard.

This year alone, MasterCard launched a record six new cards in its premium card programs. They are the PNB Mabuhay Miles World and Platinum MasterCard; EastWest Bank Platinum MasterCard; BPI-SkyMiles Delta Airlines Platinum MasterCard; Standard Chartered Smart Infinity Platinum MasterCard; Citibank Cash Back Titanium MasterCard; and RCBC Bankard World MasterCard.

The six new cards bring the premium portfolio to a total of 21 premium and super-premium MasterCards that give consumers a variety of options to choose a card that suits their lifestyles. 

“We are happy that all our 10 customer banks have, on average, two active premium MasterCard programs ranging from Titanium to Platinum and World MasterCard,” says Poch. “We’re now approaching the end of 2010, and we’re looking at launching one more new premium card program to bring our total premium and super-premium card programs to 22.”

Just how diversified is MasterCard’s premium portfolio? The partner banks have designed features unique to their cards as they’re aiming for the discerning high-spending market. With MasterCard, “premium” is not a word to just throw around. Just how premium is MasterCard’s high-end market? Several PNB cardholders charged Mercedes-Benz cars to their cards during an exclusive launch  worth P5 million each car.

Poch notes that though this is a niche market, judging by the cardholders’ “positive and enthusiastic response to our platinum cards, the local market is nowhere near the point of saturation. From our customers’ feedback, we know that they value the prestige and status that their MasterCard platinum gives them. Also, they get a much better buying experience when they flash their MasterCard premium card.”

He predicts that growth from this market will “come from creatively expanding that segment without losing the appeal of exclusivity. The competition in the banking industry today is so stiff, that the game is all about loyalty and how to provide value to their customers. But what else could you give the affluent market that they don’t already have, or that they can’t pay for in cash? For starters, there’s ‘red carpet’ customer service that they expect and appreciate, high credit lines, global access and 24/7 concierge services  and these are only the starting points.”

And then there are the unique features the individual cards offer. The Standard Chartered Smart Infinity Platinum MasterCard, which is exclusively for Smart Infinity subscribers, gives a five percent cash rebate on the cardholders’ Infinity bill if it’s enrolled for auto-charge and a five percent rebate for all dining purchases here and abroad. EastWest Bank Platinum MasterCard cardholders get a free second card for which they can set their own credit limit  the EastWest Platinum Virtual Card, which has greater security and convenience for online purchases. PNB, the local bank with the biggest international footprint in terms of branches and OFW market share, has the PNB Mabuhay Miles World and Platinum MasterCard, both of which give their cardholders fast travel miles accruement that can earn them free air tickets on PAL. BPI-SkyMiles Delta Airlines Platinum MasterCard also gives its cardholders the flexibility of getting lifestyle or travel rewards on Delta Airlines and access to the Delta Lounge at NAIA Terminal 1. The Citibank Cash Back Titanium MasterCard gives rebates on your grocery purchases, Meralco and PLDT bills, and .05 percent on everything else. The RCBC Bankard World MasterCard, targeted to frequent travelers, is designed with a wide spectrum of travel services and benefits.

“Our cards business grows in the direction our customer banks want to serve their cardholders,” he says. “Cardholders are never always within the same stage of the customer lifecycle  some are new like they may have newly acquired professional growth that puts them in the premium market while others are long-standing premium customers. Some have basic needs while others have needs that go beyond basic. At whatever stage bank customers are, MasterCard provides suitable card programs that support their transition from one lifecycle stage to the next. We find that MasterCard premium cards have the drawing power to acquire and retain profitable customers. In the last few years, we saw our customer banks upgrading valued and loyal customers to premium MasterCard programs. At the same time, new players in the industry rapidly build a profitable card business riding on MasterCard premium cards.” 

Judith Marie Dayrit, MasterCard vice president for marketing and member relations, says, “In the local market, there is proliferation of bank-sponsored benefits such as loyalty rewards, discounts, add-ons, freebies and upsizing in addition to a variety of local and international merchant offers. Time and again, our customer banks demonstrate that they do a great job when it comes to providing uniqueness in cardholder benefits. The area that banks leverage MasterCard for is access to regional and global benefits and exclusives. These are exclusive and aspirational events overseas that, for local banks most specially, may be difficult to organize or gain access to. Examples of these are the Great Singapore Sale, the Malaysia Mega Sale, the Singapore Fashion Exchange or the Hong Kong Luxury Week. Or to Bangkok with our tie-up with the Tourism Authority of Thailand.”

MasterCard gives Filipino cardholders access to events they would have had a difficult time to gain, like the Grammys. “To serve the needs of our customer banks, MasterCard maintains a repository of events and sponsorships that they can use to add value to their card programs.”  

As the year draws to a close, Poch assesses the credit card horizon for 2011. “More and more, one gets the sense that the country at large is looking forward to relatively better times ahead. We remain optimistic that Filipino consumers will overcome economic challenges and will have a more positive outlook towards the year end and the new year. For the holiday season, we expect an increase in card purchases, both debit and credit. Hopefully, the market will experience a higher growth rate in spending compared to the last couple of years during the global crises.”

Yes, it is time to let those cash registers ring as we buy gifts for family and friends for the holiday  and earn rewards from our respective banks that we can practically use to travel for free, get hotel packages, appliances to furnish our homes, and gift checks to buy more gifts.

With over 30 million acceptance locations worldwide, and over 1.6 million ATMS that accept MasterCard/Maestro/Cirrus transactions, paying for one’s purchases is so easy.

I experienced this for myself on a recent vacation abroad when I had to book airline, hotel accommodations, and Greyhound tickets online. Then for the one store in the US that would accept only cash or its own in-house card, Costco, I easily made a cash advance from my Citi MasterCard on an ATM.

“By choosing a card program that best addresses how you purchase  in physical merchants, online shopping, telephone sales or mobile payments; and with a host of benefits, offers, and rewards that suit your lifestyle  there is truly a substantial value to paying through a MasterCard than by paying in cash. Choose the MasterCard card that caters to your lifestyle and provides the benefits and rewards that represent value for you.”

Judith underscores the prestige  and practicality  of having a premium MasterCard rather than a regular one. “As people strive to acquire a higher status in life, they also want the accompanying financial stability, stronger purchasing power and expensive items all these come with the territory. Carrying a World, Platinum or Titanium MasterCard provides the purchasing power and recognition that you are a valuable customer to your bank. There are also more unique and valuable rewards that are enjoyed by premium MasterCard cardholders, as banks strive to provide different and unique benefits to its discerning and deserving loyal customers.”

What about for people who are afraid of having a high credit limit that comes with a premium card? The idea of one’s credit card debts getting out of control is a real concern. “As it is often said, ‘Create the opportunity or the vacuum, and it will get filled,’” says Judith. “Higher credit limit is usually a factor of higher-income generation. As people tend to seek aspirational rewards in their lives, a credit card with higher limit does come in handy.”

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