A recent report by PYMNTS Intelligence and Velera, based on a survey of 14,218 consumers and 3,529 SMBs in the U.S., highlights distinct spending patterns between credit union cards and national bank cards. Credit union cards currently excel in essential consumer categories, including rent and mortgage payments at 23% versus 16%, utilities at 37% versus 34%, and groceries at 58% versus 57%.
In contrast, national bank cards dominate discretionary consumer spending. Credit union cardholders are 45% less likely to use their cards for travel compared to national bank users. National banks also lead in retail, electronics, subscriptions, and restaurant spending. For SMBs, credit union cards hold an advantage in construction and renovation, particularly among firms with annual revenue under $250,000.
However, national banks maintain a lead in routine business operating costs, inventory purchases, marketing, and non-inventory expenses. The data indicates that 44% of consumers who do not prioritize their credit union card cite rewards as a key factor. Meanwhile, SMBs emphasize lower rates, fees, and credit limits, with many also seeking improved budgeting and expense management tools.
The findings suggest that credit unions face two primary challenges: increasing their share of discretionary consumer transactions and capturing a larger portion of routine business operating expenses. While credit unions have successfully captured specialized spending niches, they struggle to translate these gains into the everyday transaction volume currently held by national financial institutions.
