Credit and Debit Card Ratings

Hispanic Consumers Propel Prepaid Card Growth

Hispanic consumers account for a growing segment of prepaid debit card users.

by Lucy Lazarony

Hispanic consumers have embraced prepaid debit cards. According to an August 2012 research study, “Consumer Payments in the U.S.: The Latino Market” by Packaged Facts:

  • There are 4.6 million Latinos who used a prepaid debit card in the last 12 months.
  • They make up 15 percent of all consumers using prepaid debit cards.
  • Between 2011 and 2012, the number of Latinos using prepaid debit cards increased by 7.2 percent from 4.3 million to 4.6 million.
  • It is projected that by 2017 the percentage of Latinos using prepaid cards will increase from 13.8 percent to 16.0 percent and the number of Latinos depending on prepaid debit cards will grow from 4.6 million to 6.3 million for cumulative growth of 35.8 percent.

The principal source of primary data for the study is the Winter 2012 Experian Simmons National Consumer Study, which was fielded between February 2011 and March 2012.

Prepaid debit cards targeting Hispanic consumers include the Univision MasterCard prepaid card and The Coopera Card, available through credit unions.

Miriam De Dios, Chief Executive Officer of Coopera, says prepaid debit cards are good payment options for Hispanic consumers for several reasons.

“A prepaid reloadable card provides safety, access to new payment methods, can serve as an alternative to check-cashing, buying money orders and using money transfers for the financially excluded and it can be a way to reduce payroll costs for small businesses,” De Dios explains. “However, this product needs to be culturally relevant to Hispanic cardholders and it needs to be a stepping stone into other financial products and services that can help consumers achieve their financial goals. Therefore, credit unions are well suited to offer this product as well as financial education, loans, etc. to help the consumer with more.”

Likes and dislikes

According to De Dios, the features of prepaid debit cards that Hispanics like most include being able to open the card without needing a credit history, being able to use the card internationally, and being able to obtain secondary cards for family abroad, and having cardholder support available and accessible in English and Spanish.

Text message alerts, convenient loading options, and low fees are also popular with Hispanic consumers, De Dios says.

Turnoffs for Hispanic prepaid debit card users include inconsistent Spanish availability of services and features and too many restrictions to open and obtain a card, De Dios explains.

Des Moines Metro Credit Union has been offering The Coopera Card since January 2012. The bilingual support (phone and website) is great for our members,” says Traci Stiles, business development manager at Des Moines Metro Credit Union. “They also like the ability to load money from their account over the phone or in person at the credit union. They like to use the card for everyday purchases and online purchases. Also, they use it to pay bills.”

Forging bonds

Many Coopera Card users have other services at the credit union as well, Stiles says.  “I think most of our members who have a Coopera Card also have other services with us. We have a Credit Builder Loan that is very popular. Also, many people leave some money in their account for savings,” Stiles says.

One of the aims of The Coopera Card is to build new financial relationships with Hispanic consumers, De Dios says.

“We work with credit union issuers across the country and they are integrating this product with their overall product suite and promoting it locally through Spanish media, in an outreach capacity through financial educational opportunities and through partners. Credit unions are also including this in their toolkit as they build relationships with employers with a large number of Hispanic employees and Hispanic-owned businesses.”

Category: Best Low Fee Prepaid Cards

Millions of people are turning to prepaid debit cards as a smart alternative to carrying cash and writing checks. Almost anyone can qualify and they don’t require a credit check or a bank account.

Though they carry credit card logos and can be used anywhere a credit card is used, unlike a credit card, they do not offer a line of credit. The user can only spend the amount that has been loaded onto the card or placed into the account associated with the card.

There are dozens of debit cards on the market, many of them issued by the same bank, but fee structures are vastly different. Bestprepaiddebitcards.com has done all the research for you and provides comprehensive reviews to help you decide which card is best for you.

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  • Hispanic Consumers Propel Prepaid Card Growth

    Hispanic Consumers Propel Prepaid Card Growth

    Hispanic consumers account for a growing segment of prepaid debit card users.

    by Lucy Lazarony

    Hispanic consumers have embraced prepaid debit cards. According to an August 2012 research study, “Consumer Payments in the U.S.: The Latino Market” by Packaged Facts:

    • There are 4.6 million Latinos who used a prepaid debit card in the last 12 months.
    • They make up 15 percent of all consumers using prepaid debit cards.
    • Between 2011 and 2012, the number of Latinos using prepaid debit cards increased by 7.2 percent from 4.3 million to 4.6 million.
    • It is projected that by 2017 the percentage of Latinos using prepaid cards will increase from 13.8 percent to 16.0 percent and the number of Latinos depending on prepaid debit cards will grow from 4.6 million to 6.3 million for cumulative growth of 35.8 percent.

    The principal source of primary data for the study is the Winter 2012 Experian Simmons National Consumer Study, which was fielded between February 2011 and March 2012.

    Prepaid debit cards targeting Hispanic consumers include the Univision MasterCard prepaid card and The Coopera Card, available through credit unions.

    Miriam De Dios, Chief Executive Officer of Coopera, says prepaid debit cards are good payment options for Hispanic consumers for several reasons.

    “A prepaid reloadable card provides safety, access to new payment methods, can serve as an alternative to check-cashing, buying money orders and using money transfers for the financially excluded and it can be a way to reduce payroll costs for small businesses,” De Dios explains. “However, this product needs to be culturally relevant to Hispanic cardholders and it needs to be a stepping stone into other financial products and services that can help consumers achieve their financial goals. Therefore, credit unions are well suited to offer this product as well as financial education, loans, etc. to help the consumer with more.”

    Likes and dislikes

    According to De Dios, the features of prepaid debit cards that Hispanics like most include being able to open the card without needing a credit history, being able to use the card internationally, and being able to obtain secondary cards for family abroad, and having cardholder support available and accessible in English and Spanish.

    Text message alerts, convenient loading options, and low fees are also popular with Hispanic consumers, De Dios says.

    Turnoffs for Hispanic prepaid debit card users include inconsistent Spanish availability of services and features and too many restrictions to open and obtain a card, De Dios explains.

    Des Moines Metro Credit Union has been offering The Coopera Card since January 2012. The bilingual support (phone and website) is great for our members,” says Traci Stiles, business development manager at Des Moines Metro Credit Union. “They also like the ability to load money from their account over the phone or in person at the credit union. They like to use the card for everyday purchases and online purchases. Also, they use it to pay bills.”

    Forging bonds

    Many Coopera Card users have other services at the credit union as well, Stiles says.  “I think most of our members who have a Coopera Card also have other services with us. We have a Credit Builder Loan that is very popular. Also, many people leave some money in their account for savings,” Stiles says.

    One of the aims of The Coopera Card is to build new financial relationships with Hispanic consumers, De Dios says.

    “We work with credit union issuers across the country and they are integrating this product with their overall product suite and promoting it locally through Spanish media, in an outreach capacity through financial educational opportunities and through partners. Credit unions are also including this in their toolkit as they build relationships with employers with a large number of Hispanic employees and Hispanic-owned businesses.”

  • Experian Snags Award

    Experian Snags Award

    Credit bureau Experian recognized for efforts to promote financial literacy

    by Shane Tripcony

    One of the first lessons people interested in becoming savvy with their personal finances learn is to keep a close eye on their credit scores. In a nutshell, credit scores are a number meant to represent just how well someone pays their bills. Banks, mortgage lenders and automobile dealerships use the score to determine whether they will lend money to you and what interest rate to charge. Knowing what a credit score is and monitoring it routinely to make sure it doesn’t include faulty information, such as attributing someone else’s overdue mortgage to you, is an essential part of maintaining a solid financial life.

    One of the companies that calculates credit scores and maintains the credit reports that document how people do in paying off credit card, mortgage and student loan debts is Experian. Based in Costa Mesa, California, Experian is, along with TransUnion and Equifax, one of the nation’s three major credit bureaus.

    Along with maintaining all of this vital financial information, Experian also offers the general public a wide variety of educational tools, including a consumer education website. Recently, Experian was recognized for its advocacy and educational efforts geared towards boosting financial literacy by the National Foundation for Credit Counseling (NFCC). NFCC presented its Making the Difference Partner award to Victor Nichols, Experian’s North American CEO, at the nonprofit organization’s annual leaders conference in Denver in October.

    The award, which has been handed out annually since 2005, recognizes individuals who have helped further NFCC’s mission of helping consumers become more financially educated. “Experian’s commitment to consumer education aligns with the NFCC’s mission of creating a national culture of financial responsibility, making Experian an obvious choice for this award,” says Gail Cunningham, Vice President of Membership and Public Relations at NFCC.

    This isn’t the first time Experian has received this award. Last year’s recipient was Maxine Sweet, Experian’s Vice President of Public Education. In accepting the award Nichols vowed to continue working to promote financial literacy. “We understand what an impact education has in helping consumers manage their financial lives, and we will continue to make financial literacy a priority along with our commitment to always put the consumer first,” he says.

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