BOSTON — Credit union cards are more likely than national bank cards to be used for several essential household expenses, but they lag in travel and other discretionary purchases, according to a PYMNTS Intelligence report produced with Velera.
The report, based on surveys of 14,218 U.S. consumers and 3,529 small and medium-sized businesses, also found that credit union cards capture some specialized business expenses while national bank cards lead in routine operating purchases.
Among cardholders surveyed, 23% used their credit union card for rent or mortgage payments, compared with 16% who used a national bank card. Credit union cards also held smaller leads in utilities, phone and internet bills, groceries and basic health care.
That advantage reversed for travel: 11% of credit union cardholders used their card for travel purchases, compared with 20% of national bank cardholders using theirs. Credit union cards also trailed in electronics, retail, subscriptions and restaurants.
A Look at Construction, Contracting Purchases
For businesses, credit union cards led in construction and contracting purchases, 20% to 16%, and renovations or space expansions, 11% to 9%. The report said those advantages were strongest among smaller businesses and those outside major metropolitan areas.
National bank cards, however, led in inventory purchases and basic operating costs, each by 54% to 49%. They also led in marketing and promotion, 41% to 34%.
The two groups cited different factors in choosing a card. Among credit union consumers with any payment card, 44% cited incentives and rewards. Among credit union business cardholders, 41% cited lower rates and fees, while roughly one-third cited adequate credit limits.
The findings point to separate challenges for credit unions: winning more discretionary consumer purchases and a larger share of businesses’ recurring operating expenses, according to PYMNTS Intelligence and Velera.
