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Keep cool during the summer competition season with prepaid cards

prepaid cardsThe summer season is approaching, which means both businesses and consumers get busier in the rush up to the New Year. If you work in any kind of consumer-facing industry, it’s likely you’re already feeling the build-up as people start to think about their plans for the festive season. This is the ideal time to promote your brand, yet you also need to balance adequate exposure with sticking to budgets. Summer-time promotions and competitions are sure-fire way to attract attention to your brand – especially if a cash prize is involved. As you focus on your campaign, paying out the prize money should be the least of your worries. This is where prepaid cards make paying cash prizes convenient and affordable.

Cash prize promotions are popular among consumers and draw them to brands

Websites like JustPlay and WinStuff promote a wide range of competitions for large and small brands alike. A quick scan over them shows just how big an appetite consumers have for cash-prize competitions. Earlier this year Kelloggs ran their “Ke-Festive Nine-9” promotion, which offered cash prizes of R500 or R1million to two lucky winners. Home shopping retailer Home Choice is also offering customers the chance to win R1million if they simply shop through their website. Will the winners be receiving their prize money on a prepaid card?

Bank transfer and cheque are the traditional ways of paying prize money

The traditional way of paying out prize money certainly isn’t with reloadable prepaid cards. Instead, winners would submit their banking details and then wait for their prize funds to clear to their bank account. Can they really ensure that their bank details remain safe after being shared with the brand running the competition? The other method is for the brand running the competition to write a cheque and post it to the winner, or else request that the winner comes in person to collect it. The winner would then need to visit a bank to claim their cash prize – not only could this incur them bank charges, but it would probably detract from the special occasion of their winning the promotion.

Some brands have already started using prepaid cards to pay out prize money

There are brands already embracing prepaid cards to reimburse prize winners. The recent Joburg Shopping Festival, which ran from 24th September to 3rd October across several of the city’s main malls, offered anyone who made at least one transaction at any of the malls during the competition period a range of prizes – both cash and instant prizes. As well as a trip to Dubai, the Grand prize includes R67,000 worth in US dollars on a prepaid Visa card to spend on the trip – a far more special way to present prize money.

Setting up a mobile prepaid account is quick and only requires a name, ID number and mobile phone number

Using prepaid cards to award prize money makes sense. Not only do reloadable cards mean less admin for the winner, it means less admin for the brand organising the promotion. A reloadable card is easy to buy, load and use, and can be linked to a mobile wallet using a name and ID number. Funds can then be loaded to the card almost instantly with a few clicks of a mouse, and what’s more, they can reload funds whenever they want to. The winner doesn’t even need to share their banking details with you. The prepaid card can then be posted to the winner, or collected in person. The recipient then owns a Visa card linked to a mobile money account, which they can use for up to five years.