Credit Union Cards Win On Essentials But Lose Ground On Travel, Business Spending
By CU Today Staff —
NEW YORK--Credit unions are capturing a larger share of some essential consumer purchases but continue to lose ground to national banks on travel and other discretionary spending, according to new research from PYMNTS Intelligence and Velera.
The July 2026 “Credit Union Innovation Readiness” report, based on surveys of 14,218 U.S. consumers and 3,529 small and medium-sized businesses, found 23% of credit union cardholders use their CU card for rent or mortgage payments, compared with 16% of national bank cardholders using their bank card. Credit unions also hold smaller advantages in utilities, mobile phone and internet bills, groceries and basic healthcare, according to PYMNTS.
The advantage reverses sharply on discretionary spending. PYMNTS found just 11% of credit union cardholders use their CU card for travel, compared with 20% of national bank cardholders — making CU cardholders 45% less likely to use their cards for travel. Credit unions also trail national banks in electronics, 11% to 17%; retail, 16% to 20%; subscriptions, 21% to 25%; and restaurants, 42% to 47%.
Among SMBs, credit union cards perform better in some specialized categories, including construction and contracting, where they lead national banks 20% to 16%, and renovation or expansion expenses, 11% to 9%. But national banks capture more routine business spending, leading credit unions in inventory purchases and basic operating costs, both 54% to 49%, as well as marketing and promotion, 41% to 34%, the study shows.
The findings point to different challenges for credit unions seeking top-of-wallet status. Among CU consumers with payment cards, 44% cite incentives and rewards as influencing card choice, while SMB cardholders put greater emphasis on lower rates and fees, cited by 41%, and adequate credit limits. PYMNTS said the results suggest credit unions need to compete more effectively for discretionary consumer purchases while capturing more of the everyday operating expenses of small businesses.
Originally reported by CU Today.