NEW YORK—A new study reveals what some credit union members demand in their payment cards to move their plastic to the top of their wallets.
A recent PYMNTS Intelligence report from from the Credit Union Tracker Series, “Going for Gold: Winning Top-of-Wallet Status for Credit Unions,” reveals that a growing segment of CU cardholders — consumers and small- to medium-sized businesses (SMBs) — place value on features that help them manage how and where they spend money.
Roughly 20% of CU card users cited tools such as real-time transaction alerts, spending caps and mobile card management as important in their decision to prioritize CU-issued cards, PYMNTS said.
The focus on financial control aligns closely with current consumer preferences. In a time of economic instability and rising costs, both households and SMBs are prioritizing tools that provide greater transparency and control over their spending. While rewards programs are appreciated, the ability to manage finances effectively has become a necessity, PYMNTS said.
“Credit unions stand apart from their big-bank counterparts. Member-owned and nonprofit, they’re structurally designed to serve community needs over shareholder returns. For decades, that mission-driven model often came at the expense of scale and innovation. Today, the explosion of fintech, changing consumer preferences, and the democratization of digital tools have leveled the playing field in unexpected ways,” PYMNTS said.
The PYMNTS Intelligence report found that CUs are gaining top-of-wallet status with Generation Z consumers and SMBs, particularly in rural areas, with 60% of Gen Z cardholders and 71% of rural SMBs preferring CU-issued cards, largely citing personalized service and community trust as their reasons.
“These figures indicate a strong preference for institutions that offer localized services and understand the needs of their members,” PYMNTS said.
PYMNTS asserted that CUs may have a unique opportunity, as they already own the trust advantage.
“Now, it could be about translating that into tech-enabled tools that align with members’ real financial behaviors to unlock the path to broader growth,” PYMNTS said.
High-income consumers and Millennials often favor strong rewards programs and seamless digital experiences—areas where national and digital-only banks typically excel. However, credit unions offer something unique: deep local knowledge and trusted relationships. These strengths position them to design more personalized rewards programs that can effectively compete with those of larger banks, PYMNTS explained.
SMBs are increasingly using credit cards not just for purchases but as flexible tools for managing cash flow. Sixty-one percent of SMBs using CU cards said these help smooth income and expenses. For nearly one-third, that’s the primary reason for use, PYMNTS said.
“This suggests that CUs aiming to boost wallet share should lean into these utility functions — offering robust, user-friendly digital features that support spending awareness and financial planning,” PYMNTS said.
PYMNTS noted that although building proprietary tech is often out of reach for small FIs, open banking APIs and fintech incubators are helping credit unions integrate best-in-class tools without massive investments.
“Credit unions may not be able to outspend large banks on flashy loyalty perks. However, by zeroing in on control, transparency and real-time insights, they can strengthen their value proposition — and, potentially, unlock a new chapter of member growth,” PYMNTS concluded.