BOSTON — Credit unions may enjoy high levels of member loyalty and satisfaction, but they are significantly less likely than national banks to have their cards become consumers’ first choice for everyday spending, according to an analysis by PYMNTS Intelligence.
The latest edition of the 2026 Credit Union Tracker Series found that 61% of credit union members consider their credit union their primary financial institution. Among consumers who identify a credit union as their primary financial institution, 87% said they are very or extremely satisfied.
That loyalty, however, does not necessarily carry over to card use, PYMTNS said.
Credit unions convert 48% of their cardholders into top-of-wallet users, compared with 69% for national banks, a 21-percentage-point gap, according to the PYMNTS analysis.
The findings suggest that being a consumer’s primary financial institution does not necessarily translate into being the consumer’s preferred card issuer when making purchases, PYMNTS said.
Credit Unions Stronger on Recurring Payments
The analysis found credit union cards perform particularly well for expenses in which consumers may not regularly choose which card to use.
Twenty-three percent of credit union cardholders use their card for rent or mortgage payments, compared with 16% of national bank cardholders. Credit unions also have smaller advantages for utilities, internet and mobile services, and basic health care expenses, according to PYMNTS.
The results shift, however, for discretionary purchases in which consumers are more likely to actively choose among cards.
For travel purchases, 11% of credit union cardholders primarily use their credit union card, compared with 20% of national bank cardholders. Credit unions also trail national banks for electronics, retail and restaurant spending.
PYMNTS said recurring payments may make a card relationship appear stronger because consumers can continue using a card they linked to a bill years earlier without making a new decision. Purchases such as restaurant meals, airline tickets and electronics require consumers to choose a card again with each transaction.
Rewards Could Help Close Gap
Rewards appear to be an important factor in those decisions, according to PYMNTS.
Among credit union cardholders, 44% identified rewards as a top factor in deciding which card they use most often. By comparison, 32% of consumers who already use their credit union card as their top-of-wallet card cited rewards as a leading consideration.
PYMNTS said the difference suggests rewards could be particularly important in persuading members who are satisfied with their credit union but currently prefer another issuer’s card.
Rather than attempting to compete broadly with the rewards programs offered by the largest card issuers, PYMNTS said credit unions could potentially focus incentives on categories in which consumers frequently choose among competing cards.
Travel, dining and retail could be particularly important areas for targeted incentives, including personalized cash-back offers, merchant promotions and category-specific rewards, according to the analysis.
Top-of-Wallet Members Show Broader Engagement
Winning top-of-wallet status could have benefits beyond additional card transactions and interchange income, PYMNTS found.
Members who primarily use their credit union card also showed stronger engagement with their credit union in other areas.
Between late 2024 and early 2026, the share of top-of-wallet consumer members reporting increased deposits rose 30%, while the share among top-of-wallet small-business members reporting increased deposits climbed 28%, according to PYMNTS.
Those increases outpaced other member segments, suggesting that becoming a member’s preferred card could be associated with a broader and more valuable relationship between the member and credit union.
