Consumer Payments in the U.S.: The Latino Market
Latino consumers are a bright spot in an otherwise dreary picture for issuers of credit cards. According to Experian Simmons National Consumer Study (NCS) data, between 2004 and 2011 the total number of American consumers with credit cards dropped 5%, while the number of non-Latinos with credit cards fell 7%. During this same period, however, the number of Latino cardholders increased 23%. Thus, the vibrant growth in the number of Latino cardholders helped arrest what would have been an even more significant decline in the total number of American consumers owning credit cards.
Packaged Facts Consumer Payments in the U.S.: The Latino Marketillustrates the importance of Latinos to the debit and prepaid card worlds as well. Between 2004 and 2011 the number of Latinos with debit/ATM cards more than doubled (115%), while the number of non-Latinos with debit/ATM cards increased only 51%. Thus the report demonstrates the increasingly crucial role played by Latinos in all aspects of the consumer payments market.
The report begins with an analysis of the top trends driving the Latino consumer payments market and shows how Latinos have sparked growth within the credit and debit card industries. It continues with an overview of Latino consumer payment patterns that includes analyses of how Latinos pay their bills and pay for purchases. The report continues with a chapter examining trends in Latino consumer spending patterns. The next chapter explores the use of credit cards by Latinos and includes an overview of the demographic characteristics of Latino cardholders by type of credit card as well as a review of the personal financial management attitudes of Latinos with credit cards. The following chapter investigates the use of debit cards and prepaid (not gift) cards by Latinos. The final chapter of the report analyzes the impact of media acculturation on Latino consumer payment practices and highlights regional differences in the Latino consumer payments market.
This Packaged Facts report focuses on ownership and use by Latinos of credit cards, debit/ATM cards and prepaid debit (not gift) cards and their payment patterns for bills and purchases.
Packaged Facts Consumer Payments in the U.S.: The Latino Marketillustrates the importance of Latinos to the debit and prepaid card worlds as well. Between 2004 and 2011 the number of Latinos with debit/ATM cards more than doubled (115%), while the number of non-Latinos with debit/ATM cards increased only 51%. Thus the report demonstrates the increasingly crucial role played by Latinos in all aspects of the consumer payments market.
The report begins with an analysis of the top trends driving the Latino consumer payments market and shows how Latinos have sparked growth within the credit and debit card industries. It continues with an overview of Latino consumer payment patterns that includes analyses of how Latinos pay their bills and pay for purchases. The report continues with a chapter examining trends in Latino consumer spending patterns. The next chapter explores the use of credit cards by Latinos and includes an overview of the demographic characteristics of Latino cardholders by type of credit card as well as a review of the personal financial management attitudes of Latinos with credit cards. The following chapter investigates the use of debit cards and prepaid (not gift) cards by Latinos. The final chapter of the report analyzes the impact of media acculturation on Latino consumer payment practices and highlights regional differences in the Latino consumer payments market.
This Packaged Facts report focuses on ownership and use by Latinos of credit cards, debit/ATM cards and prepaid debit (not gift) cards and their payment patterns for bills and purchases.
CHAPTER 1 EXECUTIVE SUMMARY
Background
Introduction
Overview of the Report
Scope and Methodology
Scope of the Market
Methodology
Topline Trends
Latino Market Holds Key to Growth for Issuers of Credit and Debit Cards
Latinos Account for Increasingly Large Share of Users of Credit, Debit and Prepaid Cards
Latinos Represent Bright Spot
Growth in Prepaid Card Use Depends Totally on Latinos
Latino Consumer Spending Surges
Latino Market for Credit Cards Expected to Continue to Grow Rapidly
Number of Latinos with Debit Cards Expected to Grow 22% by 2017
Use of Prepaid Cards Expected to Show Robust Growth
Overview of Latino Consumer Payment Patterns
Access to Credit and Debit Cards Changes Bill Paying Behavior
Latinos as Likely as non-Latinos to Use Debit and Prepaid Cards to Pay Their Bills
More Latinos Pay Bills in Person
Computers and Credit Cards Change Bill Paying Habits of Latinos
Latino Computer Owners less Likely to Use Cash
Demographics of Bill Payment Methods Analyzed
Little Difference in Latino and Non-Latino Consumer Attitudes toward Buying Things with Cash
Latinos Differ from Non-Latinos When Paying for Catalog, Mail/Phone and Internet Purchases
Latino Consumer Spending Patterns
Latinos with Credit Cards More Likely to Be Planning to Buy Big- and Medium-Ticket Items
Cards Lead to More Shopping by Latinos
Credit, Debit and Prepaid Cards Add Up to More Spending by Latino Consumers
Latino Credit Card Holders Outspend Those without Cards
Access to Specialty Store Cards Promotes Spending on Household Furnishings and Bedding, Bath & Linens
Latinos Spend More of Their Income
Many Differences in the Way Latino Consumers Spend Money
Latinos and Credit Cards
14.4 Million Latinos Have Credit Cards
Latinos Most Likely to Carry a Visa Card
American Express Maintains Aura of Exclusivity among Latino Card Holders
Latinos As Likely as Other Amex Card Holders to Use Cards Often
Latinos Share Concerns of Other Consumers about Credit Card Identity Theft
Latino Credit Card Holders More Careful about Spending Money
Latinos with Credit Cards Feel More Financially Secure and Express More Economic Optimism
Consumer Confidence Highest among Latinos with Clothing and Specialty Store Credit Cards
Clear Differences in Demographics of Latino Credit Card Holders
Latinos with Amex Cards Set the Standard for Bank Credit Card Holders
Younger Latinos More Likely to Brandish Clothing and Specialty Store Credit Cards
Latinos and Debit and Prepaid Cards
Debit Cards Much More Common than Credit Cards among Latino Consumers
21 MILLION LATINOS HAVE DEBIT/ATM CARDS
Visa Dominates among Latinos with Debit Cards
Latinos as Likely as Non-Latinos to Buy Things with Debit/ATM Cards
17% OF LATINOS USE DEBIT CARDS FOR PURCHASES 20+ TIMES PER MONTH
Latinos More Likely to Use Debit/ATM Cards to Get Cash
Plain Vanilla ATM Cards More Likely to Be Used for Cash than Purchases
Visa Gains among Latinos Making Frequent Use of Debit Cards
Demographics of Latinos with Debit Cards Differ from Those with Credit Cards
4.6 Million Latinos Use Prepaid Cards
Latinos as Likely as Other Consumers to Use Prepaid Cards
Visa Leading Choice of Latino Prepaid Card Users
Demographics of Prepaid Card Users Analyzed
The Impact of Acculturation and Region on Latino Consumer Payment Patterns
Media Acculturation Defined
Acculturation Changes Profile of Latino Consumers
Acculturation Has Major Impact on How Latinos Pay Their Bills
Credit Card Use Tracks with Media Acculturation
Debit Cards Also Related to Acculturation
Miami Latinos Lead in Use of Credit Cards
Methods of Paying Bills Vary Widely across Geographic Regions
CHAPTER 2 TOPLINE TRENDS
Overview
Latinos Continue to Drive Growth in U.S. Adult Population
Table 2-1: Growth in Population of Latinos and Non-Latinos 18 Years Old and Over, 2005 vs. 2010
Latino Market Holds Key to Growth for Issuers of Credit and Debit Cards
Table 2-2: Compound Annual Growth Rates, Number of Latinos and Non-Latinos Who Have or Use Credit Cards and Debit/ATM Cards, 2004-2011
Latinos Account for Increasingly Large Share of Users of Credit, Debit and Prepaid Cards
Table 2-3: Number of Latinos with Credit, Debit/ATM and Prepaid Cards
Topline Trends: Latinos and Credit Cards
More Latinos Carry Credit Cards
Table 2-4: Number of Latinos and Non-Latinos Who Use/Have Credit Cards, 2004-2011
Latinos Represent Bright Spot for Credit Card Industry
Table 2-5: Impact of Latinos on Growth in Ownership of Credit Cards, 2004 vs. 2011
Latinos Key Factor in Growth of Frequent Users of Credit Cards
Table 2-6: Impact of Latinos on Growth in Use of Credit Cards Six or More Times in Last 30 Days, 2004 vs. 2011
Topline Trends: Latinos and Debit/ATM Cards
Latino Use of Debit/ATM Cards Grows Even Faster Than Credit Card Use
Table 2-7: Impact of Latinos on Growth in Ownership of Debit/ATM Cards, 2004 vs. 2011
Latino Consumers Important Component in Growing Popularity of Debit and ATM Cards
Table 2-8: Impact of Latinos on Growth in Frequent Use of Debit/ATM Cards for Purchases in Last 30 Days by Type of Card, 2011 vs. 2012
Table 2-9: Impact of Latinos on Growth in Use of Debit/ATM Cards for Cash in Last 30 Days, 2011 vs. 2012
Topline Trends: Latinos and Prepaid Cards
Growth in Prepaid Card Use Depends Totally on Latinos
Table 2-10: Impact of Latinos on Growth in Use of Prepaid Cards, 2011 vs. 2012
Prepaid Cards Not Necessarily Used by Latinos to Replace Cash or Checking Accounts
Table 2-11: Percent of Users of Prepaid Cards with and without Checking Accounts, Latino vs. Non-Latino
Marketers of Prepaid Cards Reach Out to Latinos
Other Topline Trends
Latino Consumer Spending Surges
Figure 2-1: Share of Growth in the Number of Consumer Units 2000 vs. 2010, Latino vs. Non-Latino
Table 2-12: Trends in Consumer Expenditures of Latino and Other Consumer Units, 2000 vs. 2010
Table 2-13: Trends in Aggregate Consumer Expenditures of Latino and Other Consumer Units, 2000 vs. 2010
Cards Promote More Shopping and Spending by Latino Consumers
Latino Bill Paying Trends Highlighted
Table 2-14: Trends in Methods Used by Consumers to Pay Bills 2008-2011, Latino vs. Non-Latino
Size and Growth of the Latino Consumer Payments Market
Latino Market for Credit Cards Expected to Continue to Grow Rapidly
Table 2-15: Projected Growth in Number of Latino Consumers Who Have or Use Credit Cards, 2012-2017
Number of Latinos with Debit Cards Expected to Grow 22% by 2017
Table 2-16: Projected Growth in Number of Latino Consumers with Debit/ATM Cards, 2012-2017
Use of Prepaid Cards Expected to Show Robust Growth
Table 2-17: Projected Growth in Number of Latinos Using Prepaid (not Gift) Cards, 2012-2017
CHAPTER 3 OVERVIEW OF LATINO CONSUMER PAYMENT PATTERNS
Paying Bills
Latinos Remain More Likely to Prefer Cash to Pay Bills
Figure 3-1: Percent Agreeing “I Always Use Cash to Pay Bills, Latinos vs. Non-Latinos
Access to Credit and Debit Cards Changes Bill Paying Behavior
Table 3-1: Percent Agreeing “I Always Use Cash to Pay Bills” by Ownership of Credit, Debit/ATM and Prepaid Cards, Latinos vs.Non-Latinos
Latinos as Likely as non-Latinos to Use Debit and Prepaid Cards to Pay Their Bills
Table 3-2: Form of Bill Payment, Latinos vs. Non-Latinos
More Latinos Pay Bills in Person
Table 3-3: Channel for Paying Bills, Latinos vs. Non-Latinos
Affluence Leads to Changes in Bill Paying Patterns among Latinos
Table 3-4: Form of Bill Payment by Latinos with Household Income of $100,000 or More
Affluent Latinos Much Less Likely to Pay Bills in Person
Table 3-5: Channel of Bill Payment by Latinos with Household Income of $100,000 or More
Computers and Credit Cards Change Bill Paying Habits of Latinos
Figure 3-2: Percent of Consumers with Household Computers and Credit Cards Who Pay Bills Online “Always/Sometimes,” Latino vs. Non-Latino
Latino Computer Owners less Likely to Use Cash
Table 3-6: Form of Bill Payment by Latinos with Credit Card and Computer in Household
Percent Paying Bills in Person Drops Off
Table 3-7: Channel of Bill Payment by Latinos with Credit Card and Computer in Household
Core Group of Latino Consumers Frequents Paypal.com
Figure 3-3: Percent of Consumers with Credit Cards and Living in Household with Computer, Visiting Paypal.com in Last 30 Days, Latinos vs. Non-Latinos
Table 3-8: Number. of Visits to Paypal.com in Last 30 Days by Consumers with Credit Cards and Living in Household with Computer, Latino vs. Non-Latino
Demographics of Bill Payment Methods Analyzed
Table 3-9: Demographic Profile of Latinos by Method of Paying Bills
Paying for Purchases
Little Difference in Latino and Non-Latino Consumer Attitudes toward Buying Things with Cash
Figure 3-4: Percent Agreeing “I Often Prefer to Pay Cash for Things I Buy,” Latinos vs. Non-Latinos
Ownership of Credit and Debit Cards Changes Latinos’ Thinking about| Paying with Cash
Table 3-10: Percent Agreeing “I Often Prefer to Pay Cash for Things I Buy” by Ownership of Credit, Debit/ATM and Prepaid Cards, Latinos vs. Non-Latinos
Latinos Choose Credit Cards over Other Methods to Pay for Catalog, Mail/Phone and Internet Purchases but Use Them Less than Non-Latinos Do
Table 3-11: Usual Method of Payment for Catalog, Mail/Phone and Internet Purchases Made in Last 12 Months, Latinos vs. Non-Latinos
CHAPTER 4 LATINO CONSUMER SPENDING PATTERNS
Impact of Credit, Debit and Prepaid Cards on Latino Consumer Shopping and Spending Patterns
Latinos with Credit Cards More Likely to Be Planning to Buy Big- and Medium-Ticket Items
Figure 4-1: Percent of Latinos with and without Credit Cards Planning to Purchase a Big-Ticket or Medium-Ticket Item in the Next 30 Days
Latinos with American Express Cards Most Likely to Be Leaning toward Big-Ticket Purchase
Table 4-1: Percent of Latinos with Credit Cards Likely to Buy Big- and Medium-Ticket Items in Next 30 Days by Type of Credit Card
Cards Lead to More Shopping by Latinos
Table 4-2: Frequency of Shopping by Latinos with Credit, Debit/ATM or Prepaid Cards
Credit, Debit and Prepaid Cards Add Up to More Spending by Latino Consumers
Table 4-3: Spending Patterns of Latinos with Credit, Debit/ATM or Prepaid Cards
Latino Credit Card Holders Outspend Those without Cards
Table 4-4: Spending Patterns of Latinos with and without Credit Cards
Access to Specialty Store Cards Promotes Spending on Household Furnishings and Bedding, Bath & Linens
Table 4-5: Spending Patterns of Latinos by Type of Credit Card Have or Use
Overview of Latino Consumer Expenditure Trends
Consumer Units Defined
Latinos Spend More of Their Income
Table 4-6: Expenditures of Hispanic Consumer Units as Percent of Before Tax Income, 2010
Latino Consumer Units Analyzed
Table 4-7: Characteristics of Consumer Units, Latino vs. Non-Latino Consumer Units, 2010
Many Differences in the Way Latino Consumers Spend Money
Table 4-8: Consumer Expenditure Categories for Which Latino Consumer Units Spend a Higher Percentage of Their Total Budget
Table 4-9: Consumer Expenditures Categories for Which Latino Consumer Units Spend a Lower Percentage of Their Total Budget
CHAPTER 5 LATINOS AND CREDIT CARDS
Overview
14.4 Million Latinos Have Credit Cards
Table 5-1: Number and Percent of Consumers Who Have or Use Credit Cards, Latino vs. Non-Latino
Latinos Most Likely to Carry a Visa Card
Table 5-2: Type of Credit Card Latinos Have or Use
Sears Card Popular among Latinos
Table 5-3: Type of Credit Card Have or Use, Latinos vs. Non-Latinos
American Express Maintains Aura of Exclusivity among Latino Card Holders
Table 5-4: Percent of Latinos Owning Bank Credit Cards and Other Types of Credit Cards
Table 5-5: Percent of Latinos Owning Retail Store Credit Cards and Other Types of Credit Cards
Latinos As Likely as Other Amex Card Holders to Use Cards Often
Table 5-6: Number of Times Credit Card Owners Used a Credit Card in Last 30 Days, Latino vs. Non-Latino by Type of Credit Card
Consumer Attitudes
Latinos Share Concerns of Other Consumers about Credit Card Identity Theft
Figure 5-1: Percent of Credit Card Holders Concerned about Credit Card Identity Theft, Latino vs. Non-Latino
Latino Credit Card Holders More Confident in Money Management Skills
Figure 5-2: Percent Agreeing ‘I Am Very Good at Managing Money,” Latinos vs. Non-Latinos by Ownership of Credit Cards
Latino Credit Card Holders More Careful about Spending Money
Table 5-7: Attitudes toward Spending and Saving Money, Latinos vs. Non-Latinos by Ownership of Credit Cards
Latino Credit Card Holders Express Strong Interest in Financial Services
Table 5-8: Interest in Financial Services of Consumers with and without Credit Cards, Latino vs. Non-Latino
Latinos with Credit Cards Feel More Financially Secure and Express More Economic Optimism
Figure 5-3: Percent Feeling Financially Secure, Latinos with Credit Cards vs. Latinos without Credit Cards
Figure 5-4: Measures of Economic Optimism, Latinos with Credit Cards vs. Latinos without Credit Cards
Consumer Confidence Highest among Latinos with Clothing and Specialty Store Credit Cards
Table 5-9: Measures of Economic Optimism, Latinos with Credit Cards by Type of Credit Card
Demographic Profile of Latinos with Credit Cards
Clear Differences in Demographics of Latino Credit Card Holders
Table 5-10: Demographic Profile of Consumers Who Have or Use Credit Cards, Latino vs Non-Latino.
Latinos with Amex Cards Set the Standard for Bank Credit Card Holders
Table 5-11: Demographic Profile of Latinos Owning Credit Cards by Type of Credit Card: Bank Credit Cards
Younger Latinos More Likely to Brandish Clothing and Specialty Store Credit Cards
Table 5-12: Demographic Profile of Latinos Owning Credit Cards by Type of Credit Card: Retail Store Credit Cards
CHAPTER 6 LATINOS AND DEBIT AND PREPAID CARDS
Debit Cards
Debit Cards Much More Common than Credit Cards among Latino Consumers
Figure 6-1: Percent with Debit and Credit Cards, Latinos vs. Non-Latinos
21 MILLION LATINOS HAVE DEBIT/ATM CARDS
Table 6-1: Number and Percent of Consumers Who Have Debit/ATM Cards, Latino vs. Non-Latino
Visa Dominates among Latinos with Debit Cards
Table 6-2: Type of Debit/ATM Card Latinos Have
Table 6-3: Percent Having or Using Debit/ATM Card, Latinos vs. Non-Latinos
Latinos as Likely as Non-Latinos to Buy Things with Debit/ATM Cards
Figure 6-2: Percent Using Debit or ATM Card for Purchases in Last 30 Days, Latinos vs. Non-Latinos
17% OF LATINOS USE DEBIT CARDS FOR PURCHASES 20+ TIMES PER MONTH
Table 6-4: Number of Times Owners of Debit/ATM Cards Used for Purchases in Last 30 days by Type of Card, Latinos vs. Non-Latinos
Latinos More Likely to Use Debit/ATM Cards to Get Cash
Figure 6-3: Percent Using Debit or ATM Card for Cash in Last 30 Days, Latinos vs. Non-Latinos
Table 6-5: Number of Times Owners of Debit/ATM Cards Used Card for Cash in Last 30 days by Type of Card, Latinos vs. Non-Latinos
Plain Vanilla ATM Cards More Likely to Be Used for Cash than Purchases
Figure 6-4: Use of Debit/ATM Cards without Visa or MasterCard Logo for Purchases and Getting Cash, Latinos vs. Non-Latinos
Visa Gains among Latinos Making Frequent Use of Debit Cards
Table 6-6: Number and Percent of Latinos Using Debit/ATM Cards for Cash Six or More Times in Last 30 Days by Type of Card, 2011 vs. 2012
Table 6-7: Number and Percent of Consumers Using Debit/ATM Cards for Purchases Six or More Times in Last 30 Days by Type of Card, 2011 vs. 2012
Demographics of Latinos with Debit Cards Differ from Those with Credit Cards
Table 6-8: Demographic Profile of Latinos with Debit/ATM Cards Only, Both Credit and Debit Cards and Credit Cards Only
Prepaid Cards
4.6 Million Latinos Use Prepaid Cards
Table 6-9: Number and Percent of Consumers Who Used Prepaid (not Gift) Cards in Last12 Months, Latino vs. Non-Latino
Latinos as Likely as Other Consumers to Use Prepaid Cards
Figure 6-5: Percent Using Prepaid Cards in Last 12 Months, Latinos vs. Non-Latinos
Visa Leading Choice of Latino Prepaid Card Users
Table 6-10: Type of Prepaid Card Used in Last 12 Months by Latinos
Table 6-11: Percent Using Prepaid Cards (Not Gift Cards) by Brand of Card, Latinos vs. Non-Latinos
Demographics of Prepaid Card Users Analyzed
Table 6-12: Demographic Profile of Consumers Using Prepaid Cards, Latino vs. Non-Latino
CHAPTER 7 THE IMPACT OF ACCULTURATION AND REGION ON LATINO CONSUMER PAYMENT PATTERNS
The Changing Profile of Latino Consumers
Nearly Half of Latino Adults Born in the U.S.
Figure 7-1: Components of Latino Population Growth 2004-2011, Immigration vs. Natural Increase
Table 7-1: Native vs. Foreign-Born Latinos 18 Years Old and Over, 2010
More than Half Are Fully Bilingual or Speak Only English at Home
Table 7-2: English-Language Capabilities of Latinos 18 Years Old and Over, 2010
The Impact of Media Acculturation on Latino Consumer Payment Patterns
Media Acculturation Defined
Acculturation Changes Profile of Latino Consumers
Table 7-3: Demographic Profile of Latinos by Degree of Media Acculturation
Acculturation Has Major Impact on How Latinos Pay Their Bills
Table 7-4: Channels Latinos Use to Pay Bills by Degree of Media Acculturation
Table 7-5: Forms Latinos Use to Pay Bills by Degree of Media Acculturation
Credit Card Use Tracks with Media Acculturation
Figure 7-2: Percent of Latinos with Credit Cards by Degree of Media Acculturation
Table 7-6: Number of Times Latinos Used a Credit Card in the Last
30 DAYS BY DEGREE OF MEDIA ACCULTURATION
Media Acculturated Latinos with Credit Cards Represent Significant Opportunity
Table 7-7: Demographic Highlights of Latinos Owning Credit Cards and Having a High Degree of Media Acculturation
Debit Cards Also Related to Acculturation
Figure 7-3: Percent of Latinos with Debit/ATM Cards by Degree of Media Acculturation
Regional Differences in Latino Consumer Payment Patterns
Many Regional Differences in Latino Demographics
Table 7-8: Demographic Characteristics of Latinos by Selected Geographic Area
Miami Latinos Lead in Use of Credit Cards
Table 7-9: Percent of Latinos with Credit, Debit/ATM or Prepaid Cards by Selected Geographic Area
Methods of Paying Bills Vary Widely across Geographic Regions
Table 7-10: Methods Latinos Use to Pay Bills by Selected Geographic Area
APPENDIX: ADDRESSES OF SELECTED U.S. LATINO MARKET RESOURCES
Background
Introduction
Overview of the Report
Scope and Methodology
Scope of the Market
Methodology
Topline Trends
Latino Market Holds Key to Growth for Issuers of Credit and Debit Cards
Latinos Account for Increasingly Large Share of Users of Credit, Debit and Prepaid Cards
Latinos Represent Bright Spot
Growth in Prepaid Card Use Depends Totally on Latinos
Latino Consumer Spending Surges
Latino Market for Credit Cards Expected to Continue to Grow Rapidly
Number of Latinos with Debit Cards Expected to Grow 22% by 2017
Use of Prepaid Cards Expected to Show Robust Growth
Overview of Latino Consumer Payment Patterns
Access to Credit and Debit Cards Changes Bill Paying Behavior
Latinos as Likely as non-Latinos to Use Debit and Prepaid Cards to Pay Their Bills
More Latinos Pay Bills in Person
Computers and Credit Cards Change Bill Paying Habits of Latinos
Latino Computer Owners less Likely to Use Cash
Demographics of Bill Payment Methods Analyzed
Little Difference in Latino and Non-Latino Consumer Attitudes toward Buying Things with Cash
Latinos Differ from Non-Latinos When Paying for Catalog, Mail/Phone and Internet Purchases
Latino Consumer Spending Patterns
Latinos with Credit Cards More Likely to Be Planning to Buy Big- and Medium-Ticket Items
Cards Lead to More Shopping by Latinos
Credit, Debit and Prepaid Cards Add Up to More Spending by Latino Consumers
Latino Credit Card Holders Outspend Those without Cards
Access to Specialty Store Cards Promotes Spending on Household Furnishings and Bedding, Bath & Linens
Latinos Spend More of Their Income
Many Differences in the Way Latino Consumers Spend Money
Latinos and Credit Cards
14.4 Million Latinos Have Credit Cards
Latinos Most Likely to Carry a Visa Card
American Express Maintains Aura of Exclusivity among Latino Card Holders
Latinos As Likely as Other Amex Card Holders to Use Cards Often
Latinos Share Concerns of Other Consumers about Credit Card Identity Theft
Latino Credit Card Holders More Careful about Spending Money
Latinos with Credit Cards Feel More Financially Secure and Express More Economic Optimism
Consumer Confidence Highest among Latinos with Clothing and Specialty Store Credit Cards
Clear Differences in Demographics of Latino Credit Card Holders
Latinos with Amex Cards Set the Standard for Bank Credit Card Holders
Younger Latinos More Likely to Brandish Clothing and Specialty Store Credit Cards
Latinos and Debit and Prepaid Cards
Debit Cards Much More Common than Credit Cards among Latino Consumers
21 MILLION LATINOS HAVE DEBIT/ATM CARDS
Visa Dominates among Latinos with Debit Cards
Latinos as Likely as Non-Latinos to Buy Things with Debit/ATM Cards
17% OF LATINOS USE DEBIT CARDS FOR PURCHASES 20+ TIMES PER MONTH
Latinos More Likely to Use Debit/ATM Cards to Get Cash
Plain Vanilla ATM Cards More Likely to Be Used for Cash than Purchases
Visa Gains among Latinos Making Frequent Use of Debit Cards
Demographics of Latinos with Debit Cards Differ from Those with Credit Cards
4.6 Million Latinos Use Prepaid Cards
Latinos as Likely as Other Consumers to Use Prepaid Cards
Visa Leading Choice of Latino Prepaid Card Users
Demographics of Prepaid Card Users Analyzed
The Impact of Acculturation and Region on Latino Consumer Payment Patterns
Media Acculturation Defined
Acculturation Changes Profile of Latino Consumers
Acculturation Has Major Impact on How Latinos Pay Their Bills
Credit Card Use Tracks with Media Acculturation
Debit Cards Also Related to Acculturation
Miami Latinos Lead in Use of Credit Cards
Methods of Paying Bills Vary Widely across Geographic Regions
CHAPTER 2 TOPLINE TRENDS
Overview
Latinos Continue to Drive Growth in U.S. Adult Population
Table 2-1: Growth in Population of Latinos and Non-Latinos 18 Years Old and Over, 2005 vs. 2010
Latino Market Holds Key to Growth for Issuers of Credit and Debit Cards
Table 2-2: Compound Annual Growth Rates, Number of Latinos and Non-Latinos Who Have or Use Credit Cards and Debit/ATM Cards, 2004-2011
Latinos Account for Increasingly Large Share of Users of Credit, Debit and Prepaid Cards
Table 2-3: Number of Latinos with Credit, Debit/ATM and Prepaid Cards
Topline Trends: Latinos and Credit Cards
More Latinos Carry Credit Cards
Table 2-4: Number of Latinos and Non-Latinos Who Use/Have Credit Cards, 2004-2011
Latinos Represent Bright Spot for Credit Card Industry
Table 2-5: Impact of Latinos on Growth in Ownership of Credit Cards, 2004 vs. 2011
Latinos Key Factor in Growth of Frequent Users of Credit Cards
Table 2-6: Impact of Latinos on Growth in Use of Credit Cards Six or More Times in Last 30 Days, 2004 vs. 2011
Topline Trends: Latinos and Debit/ATM Cards
Latino Use of Debit/ATM Cards Grows Even Faster Than Credit Card Use
Table 2-7: Impact of Latinos on Growth in Ownership of Debit/ATM Cards, 2004 vs. 2011
Latino Consumers Important Component in Growing Popularity of Debit and ATM Cards
Table 2-8: Impact of Latinos on Growth in Frequent Use of Debit/ATM Cards for Purchases in Last 30 Days by Type of Card, 2011 vs. 2012
Table 2-9: Impact of Latinos on Growth in Use of Debit/ATM Cards for Cash in Last 30 Days, 2011 vs. 2012
Topline Trends: Latinos and Prepaid Cards
Growth in Prepaid Card Use Depends Totally on Latinos
Table 2-10: Impact of Latinos on Growth in Use of Prepaid Cards, 2011 vs. 2012
Prepaid Cards Not Necessarily Used by Latinos to Replace Cash or Checking Accounts
Table 2-11: Percent of Users of Prepaid Cards with and without Checking Accounts, Latino vs. Non-Latino
Marketers of Prepaid Cards Reach Out to Latinos
Other Topline Trends
Latino Consumer Spending Surges
Figure 2-1: Share of Growth in the Number of Consumer Units 2000 vs. 2010, Latino vs. Non-Latino
Table 2-12: Trends in Consumer Expenditures of Latino and Other Consumer Units, 2000 vs. 2010
Table 2-13: Trends in Aggregate Consumer Expenditures of Latino and Other Consumer Units, 2000 vs. 2010
Cards Promote More Shopping and Spending by Latino Consumers
Latino Bill Paying Trends Highlighted
Table 2-14: Trends in Methods Used by Consumers to Pay Bills 2008-2011, Latino vs. Non-Latino
Size and Growth of the Latino Consumer Payments Market
Latino Market for Credit Cards Expected to Continue to Grow Rapidly
Table 2-15: Projected Growth in Number of Latino Consumers Who Have or Use Credit Cards, 2012-2017
Number of Latinos with Debit Cards Expected to Grow 22% by 2017
Table 2-16: Projected Growth in Number of Latino Consumers with Debit/ATM Cards, 2012-2017
Use of Prepaid Cards Expected to Show Robust Growth
Table 2-17: Projected Growth in Number of Latinos Using Prepaid (not Gift) Cards, 2012-2017
CHAPTER 3 OVERVIEW OF LATINO CONSUMER PAYMENT PATTERNS
Paying Bills
Latinos Remain More Likely to Prefer Cash to Pay Bills
Figure 3-1: Percent Agreeing “I Always Use Cash to Pay Bills, Latinos vs. Non-Latinos
Access to Credit and Debit Cards Changes Bill Paying Behavior
Table 3-1: Percent Agreeing “I Always Use Cash to Pay Bills” by Ownership of Credit, Debit/ATM and Prepaid Cards, Latinos vs.Non-Latinos
Latinos as Likely as non-Latinos to Use Debit and Prepaid Cards to Pay Their Bills
Table 3-2: Form of Bill Payment, Latinos vs. Non-Latinos
More Latinos Pay Bills in Person
Table 3-3: Channel for Paying Bills, Latinos vs. Non-Latinos
Affluence Leads to Changes in Bill Paying Patterns among Latinos
Table 3-4: Form of Bill Payment by Latinos with Household Income of $100,000 or More
Affluent Latinos Much Less Likely to Pay Bills in Person
Table 3-5: Channel of Bill Payment by Latinos with Household Income of $100,000 or More
Computers and Credit Cards Change Bill Paying Habits of Latinos
Figure 3-2: Percent of Consumers with Household Computers and Credit Cards Who Pay Bills Online “Always/Sometimes,” Latino vs. Non-Latino
Latino Computer Owners less Likely to Use Cash
Table 3-6: Form of Bill Payment by Latinos with Credit Card and Computer in Household
Percent Paying Bills in Person Drops Off
Table 3-7: Channel of Bill Payment by Latinos with Credit Card and Computer in Household
Core Group of Latino Consumers Frequents Paypal.com
Figure 3-3: Percent of Consumers with Credit Cards and Living in Household with Computer, Visiting Paypal.com in Last 30 Days, Latinos vs. Non-Latinos
Table 3-8: Number. of Visits to Paypal.com in Last 30 Days by Consumers with Credit Cards and Living in Household with Computer, Latino vs. Non-Latino
Demographics of Bill Payment Methods Analyzed
Table 3-9: Demographic Profile of Latinos by Method of Paying Bills
Paying for Purchases
Little Difference in Latino and Non-Latino Consumer Attitudes toward Buying Things with Cash
Figure 3-4: Percent Agreeing “I Often Prefer to Pay Cash for Things I Buy,” Latinos vs. Non-Latinos
Ownership of Credit and Debit Cards Changes Latinos’ Thinking about| Paying with Cash
Table 3-10: Percent Agreeing “I Often Prefer to Pay Cash for Things I Buy” by Ownership of Credit, Debit/ATM and Prepaid Cards, Latinos vs. Non-Latinos
Latinos Choose Credit Cards over Other Methods to Pay for Catalog, Mail/Phone and Internet Purchases but Use Them Less than Non-Latinos Do
Table 3-11: Usual Method of Payment for Catalog, Mail/Phone and Internet Purchases Made in Last 12 Months, Latinos vs. Non-Latinos
CHAPTER 4 LATINO CONSUMER SPENDING PATTERNS
Impact of Credit, Debit and Prepaid Cards on Latino Consumer Shopping and Spending Patterns
Latinos with Credit Cards More Likely to Be Planning to Buy Big- and Medium-Ticket Items
Figure 4-1: Percent of Latinos with and without Credit Cards Planning to Purchase a Big-Ticket or Medium-Ticket Item in the Next 30 Days
Latinos with American Express Cards Most Likely to Be Leaning toward Big-Ticket Purchase
Table 4-1: Percent of Latinos with Credit Cards Likely to Buy Big- and Medium-Ticket Items in Next 30 Days by Type of Credit Card
Cards Lead to More Shopping by Latinos
Table 4-2: Frequency of Shopping by Latinos with Credit, Debit/ATM or Prepaid Cards
Credit, Debit and Prepaid Cards Add Up to More Spending by Latino Consumers
Table 4-3: Spending Patterns of Latinos with Credit, Debit/ATM or Prepaid Cards
Latino Credit Card Holders Outspend Those without Cards
Table 4-4: Spending Patterns of Latinos with and without Credit Cards
Access to Specialty Store Cards Promotes Spending on Household Furnishings and Bedding, Bath & Linens
Table 4-5: Spending Patterns of Latinos by Type of Credit Card Have or Use
Overview of Latino Consumer Expenditure Trends
Consumer Units Defined
Latinos Spend More of Their Income
Table 4-6: Expenditures of Hispanic Consumer Units as Percent of Before Tax Income, 2010
Latino Consumer Units Analyzed
Table 4-7: Characteristics of Consumer Units, Latino vs. Non-Latino Consumer Units, 2010
Many Differences in the Way Latino Consumers Spend Money
Table 4-8: Consumer Expenditure Categories for Which Latino Consumer Units Spend a Higher Percentage of Their Total Budget
Table 4-9: Consumer Expenditures Categories for Which Latino Consumer Units Spend a Lower Percentage of Their Total Budget
CHAPTER 5 LATINOS AND CREDIT CARDS
Overview
14.4 Million Latinos Have Credit Cards
Table 5-1: Number and Percent of Consumers Who Have or Use Credit Cards, Latino vs. Non-Latino
Latinos Most Likely to Carry a Visa Card
Table 5-2: Type of Credit Card Latinos Have or Use
Sears Card Popular among Latinos
Table 5-3: Type of Credit Card Have or Use, Latinos vs. Non-Latinos
American Express Maintains Aura of Exclusivity among Latino Card Holders
Table 5-4: Percent of Latinos Owning Bank Credit Cards and Other Types of Credit Cards
Table 5-5: Percent of Latinos Owning Retail Store Credit Cards and Other Types of Credit Cards
Latinos As Likely as Other Amex Card Holders to Use Cards Often
Table 5-6: Number of Times Credit Card Owners Used a Credit Card in Last 30 Days, Latino vs. Non-Latino by Type of Credit Card
Consumer Attitudes
Latinos Share Concerns of Other Consumers about Credit Card Identity Theft
Figure 5-1: Percent of Credit Card Holders Concerned about Credit Card Identity Theft, Latino vs. Non-Latino
Latino Credit Card Holders More Confident in Money Management Skills
Figure 5-2: Percent Agreeing ‘I Am Very Good at Managing Money,” Latinos vs. Non-Latinos by Ownership of Credit Cards
Latino Credit Card Holders More Careful about Spending Money
Table 5-7: Attitudes toward Spending and Saving Money, Latinos vs. Non-Latinos by Ownership of Credit Cards
Latino Credit Card Holders Express Strong Interest in Financial Services
Table 5-8: Interest in Financial Services of Consumers with and without Credit Cards, Latino vs. Non-Latino
Latinos with Credit Cards Feel More Financially Secure and Express More Economic Optimism
Figure 5-3: Percent Feeling Financially Secure, Latinos with Credit Cards vs. Latinos without Credit Cards
Figure 5-4: Measures of Economic Optimism, Latinos with Credit Cards vs. Latinos without Credit Cards
Consumer Confidence Highest among Latinos with Clothing and Specialty Store Credit Cards
Table 5-9: Measures of Economic Optimism, Latinos with Credit Cards by Type of Credit Card
Demographic Profile of Latinos with Credit Cards
Clear Differences in Demographics of Latino Credit Card Holders
Table 5-10: Demographic Profile of Consumers Who Have or Use Credit Cards, Latino vs Non-Latino.
Latinos with Amex Cards Set the Standard for Bank Credit Card Holders
Table 5-11: Demographic Profile of Latinos Owning Credit Cards by Type of Credit Card: Bank Credit Cards
Younger Latinos More Likely to Brandish Clothing and Specialty Store Credit Cards
Table 5-12: Demographic Profile of Latinos Owning Credit Cards by Type of Credit Card: Retail Store Credit Cards
CHAPTER 6 LATINOS AND DEBIT AND PREPAID CARDS
Debit Cards
Debit Cards Much More Common than Credit Cards among Latino Consumers
Figure 6-1: Percent with Debit and Credit Cards, Latinos vs. Non-Latinos
21 MILLION LATINOS HAVE DEBIT/ATM CARDS
Table 6-1: Number and Percent of Consumers Who Have Debit/ATM Cards, Latino vs. Non-Latino
Visa Dominates among Latinos with Debit Cards
Table 6-2: Type of Debit/ATM Card Latinos Have
Table 6-3: Percent Having or Using Debit/ATM Card, Latinos vs. Non-Latinos
Latinos as Likely as Non-Latinos to Buy Things with Debit/ATM Cards
Figure 6-2: Percent Using Debit or ATM Card for Purchases in Last 30 Days, Latinos vs. Non-Latinos
17% OF LATINOS USE DEBIT CARDS FOR PURCHASES 20+ TIMES PER MONTH
Table 6-4: Number of Times Owners of Debit/ATM Cards Used for Purchases in Last 30 days by Type of Card, Latinos vs. Non-Latinos
Latinos More Likely to Use Debit/ATM Cards to Get Cash
Figure 6-3: Percent Using Debit or ATM Card for Cash in Last 30 Days, Latinos vs. Non-Latinos
Table 6-5: Number of Times Owners of Debit/ATM Cards Used Card for Cash in Last 30 days by Type of Card, Latinos vs. Non-Latinos
Plain Vanilla ATM Cards More Likely to Be Used for Cash than Purchases
Figure 6-4: Use of Debit/ATM Cards without Visa or MasterCard Logo for Purchases and Getting Cash, Latinos vs. Non-Latinos
Visa Gains among Latinos Making Frequent Use of Debit Cards
Table 6-6: Number and Percent of Latinos Using Debit/ATM Cards for Cash Six or More Times in Last 30 Days by Type of Card, 2011 vs. 2012
Table 6-7: Number and Percent of Consumers Using Debit/ATM Cards for Purchases Six or More Times in Last 30 Days by Type of Card, 2011 vs. 2012
Demographics of Latinos with Debit Cards Differ from Those with Credit Cards
Table 6-8: Demographic Profile of Latinos with Debit/ATM Cards Only, Both Credit and Debit Cards and Credit Cards Only
Prepaid Cards
4.6 Million Latinos Use Prepaid Cards
Table 6-9: Number and Percent of Consumers Who Used Prepaid (not Gift) Cards in Last12 Months, Latino vs. Non-Latino
Latinos as Likely as Other Consumers to Use Prepaid Cards
Figure 6-5: Percent Using Prepaid Cards in Last 12 Months, Latinos vs. Non-Latinos
Visa Leading Choice of Latino Prepaid Card Users
Table 6-10: Type of Prepaid Card Used in Last 12 Months by Latinos
Table 6-11: Percent Using Prepaid Cards (Not Gift Cards) by Brand of Card, Latinos vs. Non-Latinos
Demographics of Prepaid Card Users Analyzed
Table 6-12: Demographic Profile of Consumers Using Prepaid Cards, Latino vs. Non-Latino
CHAPTER 7 THE IMPACT OF ACCULTURATION AND REGION ON LATINO CONSUMER PAYMENT PATTERNS
The Changing Profile of Latino Consumers
Nearly Half of Latino Adults Born in the U.S.
Figure 7-1: Components of Latino Population Growth 2004-2011, Immigration vs. Natural Increase
Table 7-1: Native vs. Foreign-Born Latinos 18 Years Old and Over, 2010
More than Half Are Fully Bilingual or Speak Only English at Home
Table 7-2: English-Language Capabilities of Latinos 18 Years Old and Over, 2010
The Impact of Media Acculturation on Latino Consumer Payment Patterns
Media Acculturation Defined
Acculturation Changes Profile of Latino Consumers
Table 7-3: Demographic Profile of Latinos by Degree of Media Acculturation
Acculturation Has Major Impact on How Latinos Pay Their Bills
Table 7-4: Channels Latinos Use to Pay Bills by Degree of Media Acculturation
Table 7-5: Forms Latinos Use to Pay Bills by Degree of Media Acculturation
Credit Card Use Tracks with Media Acculturation
Figure 7-2: Percent of Latinos with Credit Cards by Degree of Media Acculturation
Table 7-6: Number of Times Latinos Used a Credit Card in the Last
30 DAYS BY DEGREE OF MEDIA ACCULTURATION
Media Acculturated Latinos with Credit Cards Represent Significant Opportunity
Table 7-7: Demographic Highlights of Latinos Owning Credit Cards and Having a High Degree of Media Acculturation
Debit Cards Also Related to Acculturation
Figure 7-3: Percent of Latinos with Debit/ATM Cards by Degree of Media Acculturation
Regional Differences in Latino Consumer Payment Patterns
Many Regional Differences in Latino Demographics
Table 7-8: Demographic Characteristics of Latinos by Selected Geographic Area
Miami Latinos Lead in Use of Credit Cards
Table 7-9: Percent of Latinos with Credit, Debit/ATM or Prepaid Cards by Selected Geographic Area
Methods of Paying Bills Vary Widely across Geographic Regions
Table 7-10: Methods Latinos Use to Pay Bills by Selected Geographic Area
APPENDIX: ADDRESSES OF SELECTED U.S. LATINO MARKET RESOURCES
