MasterCard Research Provides Insight Into Hispanic Americans' Debit Card Use

Due to factors such as convenience, safety, and widespread acceptance, debit card usage increased 41 percent over the last two years, compared with checks (11 percent increase), while cash use declined 22 percent among this fast-growing population demographic.

The Hispanic Debit Cardholder Survey, initiated by the Deposit Access Group, North America, MasterCard International, encompassed 1,500 interviews of "banked" Hispanic-Americans in Chicago, Houston, Los Angeles, New York, and Miami to obtain a representative sample of how Hispanic consumers in the United States view and use debit cards.

According to the study, Hispanic-Americans, now the largest minority group and second-largest population demographic in the United States, clearly value the convenience and versatility of debit cards as a payment option. Ease of use and speed, widespread acceptance, and the safety and security of not having to carry cash or handle checks were the debit advantages most often cited.

Findings of the survey also suggest that proactive efforts by financial institutions (in-Spanish-language) play a key role in informing Hispanic-Americans about the benefits and advantages of debit card usage. Respondents noted an appreciation and preference for financial institutions that provide a bank and branch experience designed with the Hispanic customer in mind (such as availability of bilingual services).

Almost two-thirds of those surveyed (65 percent) considered themselves "extremely knowledgeable" or "very knowledgeable" about how debit cards work, and more than nine out of 10 (94 percent) described themselves as at least "somewhat knowledgeable." The vast majority (88 percent) obtained that knowledge from a financial institution's customer service representative who explained the details of the institution's debit card program in Spanish; 84 percent received informational brochures, and 82 percent said brochures were available in Spanish.

Additional notable research findings include these:

Debit cards are just as likely to be used as credit cards for mid-to-high-end purchases in the $100 to $500 range.

Debit cards were viewed as a superior spending-management tool to checks.

"The results of our survey show that Hispanic-Americans, just like millions of other consumers throughout the United States and around the world, recognize the advantages of debit cards as a payment option and in increasing numbers value use of their debit cards for everyday activities," said Richard G. Lyons, Jr., senior vice president, Deposit Access Group, North America, MasterCard International. "MasterCard remains committed to helping financial institutions deliver payment solutions in line with the expectations and usage needs of changing cardholder demographics. From tech-savvy youth to aging baby boomers and the blossoming U.S. Hispanic population, the debit MasterCard(R) card represents a vital and ideal payment alternative."

MasterCard International provides financial institutions with a comprehensive suite of programs and materials dedicated to the U.S. Hispanic community. Through established relationships with Hispanic community-based organizations such as the League of United Latin American Citizens (LULAC) and the National Council of La Raza (NCLR), MasterCard has delivered financial education materials and programming to meet the needs of Hispanic consumers.

The MasterCard commitment to the Hispanic community also extends to support of the Hispanic College Fund and Hispanic Heritage Awards Foundation. MasterCard was the first financial services company to advertise to U.S. Hispanics in Spanish, leveraging its award-winning "Priceless" campaign to create numerous Spanish-language executions. In addition, MasterCard launched mastercardenespanol.com, the first website dedicated to the Spanish-language market by a major payment brand in the United States, and has developed numerous consumer promotions for U.S. Hispanics.

Debit MasterCard, Maestro and Cirrus are fully integrated components of the program mix, which also include an assortment of Spanish-language or bilingual educational brochures, statement inserts, ATM and VRU messaging, sponsorships, financial management workshops, and Web-based content.