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Consumer Payments in the U.S.: The Latino Market


Attention: There is an updated edition available for this report.

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 Market illustrates 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.

Overview of the Report

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.

Scope of the 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.

Methodology

The principal source of primary data is the Winter 2012 Experian Simmons NCS, which was fielded between February 2011 and March 2012.  Trend data contained in the report is constructed from the Fall 2004 through Fall 2011 Experian Simmons National Consumer Studies.  These studies were fielded during the 12-month period ending in December of each year.

Experian Simmons conducts telephone and booklet-based surveys of a large and random sample of consumers who in aggregate represent a statistically accurate cross-section of the U.S. population.  Each Experian Simmons NCS survey release involves a sample of approximately 25,000 respondents.

The report is also based upon data collected from a wide range of industry sources, including company websites, trade publications, business newspapers and magazines, consumer blogs and other releases from public companies.

 


  • 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
  • Topline Trends
    • Overview
      • Latinos Continue to Drive Growth in U.S. Adult Population
        • Table Growth in Population of Latinos and Non-Latinos 18 Years Old and Over, 2005 vs. 2010 (in thousands)
      • Latino Market Holds Key to Growth for Issuers of Credit and Debit Cards
        • Table 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 Number of Latinos with Credit, Debit/ATM and Prepaid Cards (in thousands)
    • Topline Trends: Latinos and Credit Cards
      • More Latinos Carry Credit Cards
        • Table Number of Latinos and Non-Latinos Who Use/Have Credit Cards, 2004-2011 (in thousands)
      • Latinos Represent Bright Spot for Credit Card Industry
        • Table Impact of Latinos on Growth in Ownership of Credit Cards, 2004 vs. 2011 (in thousands)
      • Latinos Key Factor in Growth of Frequent Users of Credit Cards
        • Table Impact of Latinos on Growth in Use of Credit Cards Six or More Times in Last 30 Days, 2004 vs. 2011 (in thousands)
    • Topline Trends: Latinos and Debit/ATM Cards
      • Latino Use of Debit/ATM Cards Grows Even Faster Than Credit Card Use
        • Table Impact of Latinos on Growth in Ownership of Debit/ATM Cards, 2004 vs. 2011 (in thousands)
      • Latino Consumers Important Component in Growing Popularity of Debit and ATM Cards
        • Table 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 (in thousands)
        • Table Impact of Latinos on Growth in Use of Debit/ATM Cards for Cash in Last 30 Days, 2011 vs. 2012 (in thousands)
    • Topline Trends: Latinos and Prepaid Cards
      • Growth in Prepaid Card Use Depends Totally on Latinos
        • Table Impact of Latinos on Growth in Use of Prepaid Cards, 2011 vs. 2012 (in thousands)
      • Prepaid Cards Not Necessarily Used by Latinos to Replace Cash or Checking Accounts
        • Table 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
        • Table Trends in Consumer Expenditures of Latino and Other Consumer Units, 2000 vs. 2010 (in thousands)
        • Table Trends in Aggregate Consumer Expenditures of Latino and Other Consumer Units, 2000 vs. 2010 (in billion $)
      • Cards Promote More Shopping and Spending by Latino Consumers
      • Latino Bill Paying Trends Highlighted
        • Table 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 Projected Growth in Number of Latino Consumers Who Have or Use Credit Cards, 2012-2017 (in thousands)
      • Number of Latinos with Debit Cards Expected to Grow 22% by 2017
        • Table Projected Growth in Number of Latino Consumers with Debit/ATM Cards, 2012-2017 (in thousands)
      • Use of Prepaid Cards Expected to Show Robust Growth
        • Table Projected Growth in Number of Latinos Using Prepaid (not Gift) Cards, 2012-2017 (in thousands)
  • Overview of Latino Consumer Payment Patterns
    • Paying Bills
      • Latinos Remain More Likely to Prefer Cash to Pay Bills
      • Access to Credit and Debit Cards Changes Bill Paying Behavior
        • Table 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 Form of Bill Payment, Latinos vs. Non-Latinos
      • More Latinos Pay Bills in Person
        • Table Channel for Paying Bills, Latinos vs. Non-Latinos
      • Affluence Leads to Changes in Bill Paying Patterns among Latinos
        • Table 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 Channel of Bill Payment by Latinos with Household Income of $100,000 or More
      • Computers and Credit Cards Change Bill Paying Habits of Latinos
      • Latino Computer Owners less Likely to Use Cash
        • Table Form of Bill Payment by Latinos with Credit Card and Computer in Household
      • Percent Paying Bills in Person Drops Off
        • Table Channel of Bill Payment by Latinos with Credit Card and Computer in Household
      • Core Group of Latino Consumers Frequents Paypal.com
        • Table 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 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
      • Ownership of Credit and Debit Cards Changes Latinos' Thinking about Paying with Cash
        • Table 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 Usual Method of Payment for Catalog, Mail/Phone and Internet Purchases Made in Last 12 Months, Latinos vs. Non-Latinos
  • 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
      • Latinos with American Express Cards Most Likely to Be Leaning toward Big-Ticket Purchase
        • Table 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 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 Spending Patterns of Latinos with Credit, Debit/ATM or Prepaid Cards
      • Latino Credit Card Holders Outspend Those without Cards
        • Table Spending Patterns of Latinos with and without Credit Cards
      • Access to Specialty Store Cards Promotes Spending on Household Furnishings and Bedding, Bath & Linens
        • Table 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 Expenditures of Hispanic Consumer Units as Percent of Before-Tax Income, 2010
      • Latino Consumer Units Analyzed
        • Table Characteristics of Consumer Units, Latino vs. Non-Latino Consumer Units, 2010
      • Many Differences in the Way Latino Consumers Spend Money
        • Table Consumer Expenditure Categories for Which Latino Consumer Units Spend a Higher Percentage of Their Total Budget
        • Table Consumer Expenditures Categories for Which Latino Consumer Units Spend a Lower Percentage of Their Total Budget
  • Latinos and Credit Cards
    • Overview
      • 14.4 Million Latinos Have Credit Cards
        • Table Number and Percent of Consumers Who Have or Use Credit Cards, Latino vs. Non-Latino (in thousands)
      • Latinos Most Likely to Carry a Visa Card
        • Table Type of Credit Card Latinos Have or Use (in thousands)
      • Sears Card Popular among Latinos
        • Table Type of Credit Card Have or Use, Latinos vs. Non-Latinos
      • American Express Maintains Aura of Exclusivity among Latino Card Holders
        • Table Percent of Latinos Owning Bank Credit Cards and Other Types of Credit Cards
        • Table 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 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
      • Latino Credit Card Holders More Confident in Money Management Skills
      • Latino Credit Card Holders More Careful about Spending Money
        • Table 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 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
      • Consumer Confidence Highest among Latinos with Clothing and Specialty Store Credit Cards
        • Table 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 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 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 Demographic Profile of Latinos Owning Credit Cards by Type of Credit Card: Retail Store Credit Cards
  • Latinos and Debit and Prepaid Cards
    • Debit Cards
      • Debit Cards Much More Common than Credit Cards among Latino Consumers
      • 21 Million Latinos Have Debit/ATM Cards
        • Table Number and Percent of Consumers Who Have Debit/ATM Cards, Latino vs. Non-Latino (in thousands)
      • Visa Dominates among Latinos with Debit Cards
        • Table Type of Debit/ATM Card Latinos Have (in thousands)
        • Table Percent Having or Using Debit/ATM Card, Latinos vs. Non-Latinos
      • 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
        • Table 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
        • Table 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
      • Visa Gains among Latinos Making Frequent Use of Debit Cards
        • Table 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 (in thousands)
        • Table 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 (in thousands)
      • Demographics of Latinos with Debit Cards Differ from Those with Credit Cards
        • Table 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 Number and Percent of Consumers Who Used Prepaid (not Gift) Cards in Last 12 Months, Latino vs. Non-Latino (in thousands)
      • Latinos as Likely as Other Consumers to Use Prepaid Cards
      • Visa Leading Choice of Latino Prepaid Card Users
        • Table Type of Prepaid Card Used in Last 12 Months by Latinos (in thousands)
        • Table Percent Using Prepaid Cards (Not Gift Cards) by Brand of Card, Latinos vs. Non-Latinos
      • Demographics of Prepaid Card Users Analyzed
        • Table Demographic Profile of Consumers Using Prepaid Cards, Latino vs. Non-Latino
  • 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.
        • Table Native vs. Foreign-Born Latinos 18 Years Old and Over, 2010 (in thousands)
      • More than Half Are Fully Bilingual or Speak Only English at Home
        • Table English-Language Capabilities of Latinos 18 Years Old and Over, 2010 (in thousands)
    • The Impact of Media Acculturation on Latino Consumer Payment Patterns
      • Media Acculturation Defined
      • Acculturation Changes Profile of Latino Consumers
        • Table Demographic Profile of Latinos by Degree of Media Acculturation
      • Acculturation Has Major Impact on How Latinos Pay Their Bills
        • Table Channels Latinos Use to Pay Bills by Degree of Media Acculturation
        • Table Forms Latinos Use to Pay Bills by Degree of Media Acculturation
      • Credit Card Use Tracks with Media Acculturation
        • Table 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 Demographic Highlights of Latinos Owning Credit Cards and Having a High Degree of Media Acculturation
      • Debit Cards Also Related to Acculturation
    • Regional Differences in Latino Consumer Payment Patterns
      • Many Regional Differences in Latino Demographics
        • Table Demographic Characteristics of Latinos by Selected Geographic Area
      • Miami Latinos Lead in Use of Credit Cards
        • Table Percent of Latinos with Credit, Debit/ATM or Prepaid Cards by Selected Geographic Area
      • Methods of Paying Bills Vary Widely across Geographic Regions
        • Table Methods Latinos Use to Pay Bills by Selected Geographic Area
  • Addresses of Selected U.S.

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