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- US Hispanic Payment Preferences Market Report 2022
This report provides comprehensive and current information and analysis of the Hispanic payment preferences market including Hispanic payment preferences market size, anticipated market forecast, relevant market segmentation, and industry trends for the Hispanic payment preferences market in the US.
Current market landscape
Hispanics are seeking payment methods they can trust. As this segment’s needs change, so does their preference for payment methods that better address their lifestyles and desires. Thus traditional payment options face challenges from mobile alternatives that have the potential to fill unmet needs.
Market share and key industry trends
- Cash remains an enduring form of payment. Latinos pair contactless payment methods with cash, as 62% indicate they are comfortable leaving the house without cash and 82% feel that there will always be a need for cash. Cash’s relevance speaks to the particular lifestyle and spending methods of the Latino community.
- Debit cards are by far the most popular form of payment. 60% of Hispanics indicate debit cards as their preferred form of payment. Credit worthiness, income inequality and credit card debt weariness may be driving debit card usage compared to credit card.
- Hispanics are more likely than the general population to store their credit card information on their phone and desktop/computer. Combined with higher rates of online shopping over their phones, this creates opportunities to continue outreach for digital payment methods such as Apple Pay or Google Pay.
Future market trends in Hispanic preferred payment methods
As Hispanics’ buying power grows, they are looking for payment methods that align with their financial goals. Although consumers continue to depend on traditional payment instruments like cash, debit cards and credit cards for purchases, the rising prevalence of alternative financing and digital payment services has diversified consumers’ wallets and created an increasingly competitive battle for preferred payment methods.
Read on to discover more about the Hispanic payment preferences consumer market, read our Payment Preferences – US – 2021 report, or take a look at our other Financial Services market research reports.
Quickly understand the payment preferences market
- Attitudes toward payment methods.
- Preferred payment types.
- Attitudes toward financing options.
- Mobile payment behaviors and attitudes.
- Attitudes toward cryptocurrencies.
Covered in this payment preferences market report
Brands include: Sezzle, Cash App, Credit Karma, Sequin, PayPal, Zelle, Bank of America.
Expert analysis from a specialist in preferred payment
This report, written by Stefanie Kundakjian, a leading analyst in the Multicultural sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
The Covid-19 pandemic and uncertain financial times accelerated many of the shifts that were already occurring within the payment landscape. Latinos are seeking brands they can trust and are interested in adopting novel payment methods that address their specific needs. Access and economic disparities condition Latinos’ payment habits and attitudes, despite their growing buying power. The number of payment types that Hispanics interact with in their daily lives is broad as widespread adoption of digital and mobile payment alternatives become entrenched.
Stefanie Kundakjian
Multicultural Consumer Insights Analyst, Hispanic Focus
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Overview
- What you need to know
- This Report looks at the following areas:
- Definition
- Market context
- What you need to know
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Executive Summary
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- Top takeaways
- Market overview
- Opportunities and challenges
- There’s an opportunity to engage younger generations to become more intentional with their payment methods
- Figure 1: Attitudes toward payment methods, 2022
- Debit cards that offer added value will further entrench Hispanic consumers and quell frustrations
- Figure 2: Preferred method of payment, 2022
- Cash continues to compete with debit and credit cards
- Figure 3: Attitudes toward cash, by generation and household income (agree), 2022
- Financing faces challenges, but with the right outreach and guardrails can find opportunities to grow
- Figure 4: Attitudes toward financing options, 2022
- Key consumer insights
- Hispanics combine contactless payment methods with cash
- Cash App’s messaging has caught Hispanics’ attention
- Credit cards may take a back seat, as Hispanics indicate using them only for online purchases done on their mobile phones
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Hispanics by the Numbers
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- A young, diverse and growing population
- Figure 5: US population, by race and Hispanic origin, 2017-27
- Figure 6: Hispanic share of US population, by age, 2021
- Reaching a diverse demographic
- Credit score distribution showcases need for education and tools to help improve access to financial services
- Figure 7: Credit score distribution
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Market Factors
- Inflation may impact Hispanics more severely, but Hispanic buying power remains significant
- Figure 8: Median household income, by race and Hispanic origin of householder, 2020
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- Figure 9: Household income distribution by Hispanic origin of householder vs White, non-Hispanic, 2020
- Inflationary conditions will likely alter Hispanics’ spending habits
- Figure 10: Consumer Sentiment Index, 2007-22
- Impact of inflation on interest rates
- Inflation may impact Hispanics more severely, but Hispanic buying power remains significant
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Marketing Opportunities and Strategies
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- Meeting consumer needs through the lens of the Identity Trend Driver
- Reach Hispanics with humor and relatability
- Figure 11: Wearesuma Instagram post, 2022
- Meeting consumer needs through the lens of the Wellness Trend Driver
- Buy Now, Pay Later that helps build credit and quell financial anxieties
- Figure 12: Sezzle, 2020
- Wellness propositions that capitalize on consumer trust can turn Hispanics into ambassadors for your brand
- Meeting consumer needs through the lens of the Value Trend Driver
- Consider quality offerings that won’t rock the budget
- Figure 13: Sequin Card Instagram post, 2023
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Hispanic Payment Preferences – Fast Facts
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Attitudes toward Payment Methods
- Contactless payment habits from early COVID-19 days are here to stay, but cash won’t lose its relevancy
- Figure 14: Attitudes toward payment methods, 2022
- Cash remains relevant across all generations, but especially among lower-household incomes
- Figure 15: Attitudes toward cash, by generation and household income (agree), 2022
- Hispanic split between those who carefully consider type of payment and those who do not give it much thought
- Figure 16: Attitudes toward payment method, by place of birth, age and income (agree), 2022
- University partnerships can help reach younger consumers
- Spotlight on Wescom Credit Union at the Hispanic Serving Institution’s event at UCLA
- Figure 17: Wescom Credit Union Facebook post, 2022
- Contactless payment habits from early COVID-19 days are here to stay, but cash won’t lose its relevancy
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Preferred Payment Type
- Debit cards are by far the most popular method of payment, credit cards and cash are tied for second
- Figure 18: Preferred method of payment, 2022
- The popularity of debit is seen across purchase type as well
- Figure 19: Payment preference, by purchase type, 2022
- Payment preferences differs by gender
- Figure 20: Payment preference, by gender (any rank), 2022
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- Figure 21: Payment preference, by household income (any rank), 2022
- Men play favorites when it comes to credit cards
- Figure 22: Payment preference, by purchase type – men vs women, 2022
- Debit cards are by far the most popular method of payment, credit cards and cash are tied for second
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Digital Payments Used
- PayPal remains the most popular digital payment method
- Figure 23: Digital payment usage, 2022
- Zelle is second most popular, but limited by underbanked and unbanked population
- Cash App’s targeted messaging resonates with Hispanics
- Figure 24: Cash App Instagram post, 2021
- PayPal remains the most popular digital payment method
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Attitudes toward Financing Options
- Few are interested in financing options, but there’s opportunity for growth
- Figure 25: Attitudes toward financing options, 2022
- Buy now, pay later popular with Hispanic Millennials
- Figure 26: BNPL and Millennials, 2022
- Fathers are an ideal – and already interested – segment
- Figure 27: Attitudes toward financing options – parents vs non-parents vs overall, 2022
- Few are interested in financing options, but there’s opportunity for growth
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Mobile Payment Behaviors and Attitudes
- Hispanics more likely to store their credit card information digitally
- Figure 28: Payment method storage, 2022
- Ideal opportunity to market payment storage methods to men ages 18-44
- Figure 29: Fathers’ payment method storage, 2022
- Barriers to adoption of mobile payment options need to be addressed, particularly among older consumers
- Figure 30: Attitudes toward mobile payment, 55-65 year olds vs all, 2022
- Hispanics more likely to store their credit card information digitally
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Attitudes toward Crypto
- Interest in crypto is mounting, but consumers are grappling with the fallout of FTX
- Figure 31: Interest in cryptocurrency, 2022
- Men are highly engaged with crypto
- Figure 32: Fathers’ interest in cryptocurrency, 2022
- Interest in crypto is mounting, but consumers are grappling with the fallout of FTX
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Appendix – Data Sources and Abbreviations
- Data sources
- Consumer survey data
- Abbreviations and terms
- Data sources
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