ST. PETERSBURG, Fla.– New research has been released by Velera offering insights into how consumer payment preferences and behaviors are evolving in response to economic conditions, shifts in consumer spending patterns and the rapid rise of digital innovation.
The findings are included in 2025 Eye on Payments study, which is now in its eighth year.
“Today’s consumers have more ways to pay than ever – and they’re using nearly all of them,” the company said. “From cards and cash to digital wallets, peer-to-peer (P2P) and Buy Now, Pay Later (BNPL) options, credit union members and bank customers are moving fluidly across the full payment spectrum in search of convenience, confidence and control.”
Economy Shaping Spending
Velera noted that while spending has remained resilient, 74% of credit union member survey respondents said today’s economic outlook is shaping how they plan to make future payments.
“The result is a payments landscape defined by flexibility and choice, where consumers are blending familiar methods with new technologies that fit their financial lives,” the company said.
According to Velera, the 2025 report finds debit and credit are evenly matched as consumers’ top payment choices, each preferred by 38% of respondents. That balance reflects a “best of both worlds” mindset, the company said.
Debit Vs. Credit
The research found debit dominates everyday purchases, while credit leads for larger transactions and online shopping, “underscoring the importance of a well-rounded card portfolio,” Velera said. Credit cards are also leading the lending race, with nearly half of credit union members (45%) expressing interest in securing a credit card from their financial institution – almost double the interest shown for personal (26%) or auto loans (24%), Velera reported.
This year’s Eye on Payments highlights the mainstream adoption of digital wallets and contactless payments, as well as growing comfort with P2P and BNPL offerings, Velera said.
Cash Hangs On
“Yet even as digital usage expands, cash continues to hold its ground as the third most preferred payment method behind debit and credit,” the company said.
The research also found ATMs remain vital, as well, with one-in-four members using them weekly –“proof that convenience still includes traditional access points.”
“Today’s consumers are balancing their familiarity with traditional payments offerings with a growing appetite for digital tools,” Velera Chief Marketing & Communications Officer Tom Pierce said in a statement. “The clear theme is convergence – traditional payments remain strong, but digital is no longer optional. This year’s findings emphasize both the opportunity and responsibility for credit unions to deliver secure, convenient and innovative experiences across the full spectrum of payments solutions that consumers are embracing. Credit unions that seamlessly integrate trust, speed and innovation are best positioned to capture more everyday member interactions, deepen engagement and build long-term loyalty.”
Key Findings
According to Velera, other key findings from the study include:
- 69% of consumers now use mobile wallets, up from 44% in 2021.
- Contactless card usage also remains strong, with 80% of members holding a tap-to-pay card and nearly half using it weekly.
- 38% of members would likely use a BNPL program if offered by their financial institution, with reported adoption highest among younger generations.
- P2P offerings are now ubiquitous: Three-quarters (74%) of consumers use them at least periodically, and more than one-third of Gen Z (39%) and Millennials (38%) say P2P is a primary payment method.
- One in three consumers now use AI weekly for budgeting, and nearly half are open to using it for financial transactions.
- 10% of consumers experienced card fraud in the past year – most often online (79%) and frequently tied to shared credentials (45%).
Additional Analysis
Beyond taking an in-depth look at these key findings, Velera said the study analyzes how and why payment method preferences differ among the generations, as well as key takeaways to help credit unions better meet members where they are.
“Rising interest in credit cards, for example, underscores the need for targeted campaigns that connect members with the lending products they’re actively seeking,” Velera said in releasing its findings. “Meanwhile, the growing prevalence of AI and increasingly complex fraud schemes highlight the importance of member education. Credit unions have an opportunity to proactively guide members through these emerging technologies and security risks, reinforcing their role as trusted partners in a rapidly changing financial landscape.
About the Survey
Velera surveyed 1,750 credit union members and non-members from across the U.S. The online survey, conducted in June and July 2025, was taken by participants ages 18 to 65+. Of those surveyed, 50% were male and 50% were female, and the demographic characteristics of those surveyed align with consumer data from America’s Credit Unions Member Profile.
Generations were defined as: Generation Z (Gen Z), ages 18-28; Younger Millennials, ages 29-36; Older Millennials, ages 37-44; Generation X, ages 45-60; and Baby Boomers (Boomers+), ages 61 and above.
The 2025 Eye on Payments white paper is available for download on the Velera website.
