Western Union Forecasts Changes in Consumer Spending Behavior
Western Union has announced results from a new survey finding that "79 percent of consumers favor regulations that place limits on credit card fees, such as interest rates and late payment penalties. Another 60 percent of consumers are strongly in favor of tighter regulations. In addition, 27 percent of consumers reported using cash more often than in the past."
The company also forecasts that, "as The Credit Card Accountability, Responsibility and Disclosure Act is implemented, businesses will witness a change in consumer spending, with cash and pre-paid cards being a more desirable option among consumers."
“Consumers are clearly looking for more options to better manage their money, including how they use and rely on their credit cards to make everyday purchases,” said Jorge Consuegra, senior vice president, U.S. Product Management, Western Union.
The Western Union survey also revealed that while the use of cash offers consumers better ways to control spending, and helps avoid accumulating debt, 66 percent of those surveyed noted their inability to make online purchases.
“While cash can, indeed, help consumers rein in their spending and assert more control over their finances and purchasing power, there are clearly times when card-based transactions are preferred and necessary,” Consuegra added. “Beyond providing consumers with global money transfer services, Western Union also offers convenient pre-paid debit cards, which can be reloaded and do not carry interest rates or purchase-related fees.”
The company is currently piloting the Western Union® MoneyWise™ Visa® Pre-Paid Card with Overnight Home Delivery service in the St. Louis and Kansas City markets. The Western Union MoneyWise Visa prepaid card provides the money transfer recipient with a great tool for spending and managing their money. It can be used anywhere Visa debit cards are accepted including online as well as withdrawing cash at ATMs. Additionally, following the receiver’s enrollment, more money can be added to the card by both the sender and the receiver with valid information, at nearly 44,000 Western Union Agent locations throughout the U.S. or online.
The company also offers a pre-paid debit Master Card.
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