By Ray Birch
ST. PETERSBURG, Fla.— Artificial intelligence isn’t just reshaping the way consumers search, shop, and save—it’s about to transform how they pay.
And according to Velera Chief Marketing and Communications Officer Tom Pierce, credit unions that don’t start preparing now risk being left behind as members grow increasingly comfortable letting AI handle financial decisions.
They also need to be paying attention to an immediate opportunity to grow their credit card portfolios, he said.
iStock-Harsa Maduranga
Velera’s newly released Eye on Payments 2025 study—one of the industry’s most comprehensive looks at consumer payment behavior—shows the rise of AI is accelerating at a pace few anticipated. One in three consumers now use AI a few times per week, and more than half already apply it to financial planning or budgeting. Even more striking, 42% said they would feel comfortable using AI to make transactions, and that figure jumps to nearly 80% among Gen Z and younger Millennials.
“The growth in AI impacts after just a few short years is unbelievable,” Pierce said. “Credit unions need to stay up to speed on everything happening in this space—the good and the bad—so they can be that trusted partner for members.”
A New Kind Of Payment Relationship
Pierce described a fast-approaching future in which members could load their debit or credit cards into AI assistants such as ChatGPT, which would then plan and even book entire vacations based on personal preferences—right down to the airline, hotel, and restaurant. In another use case, AI could automatically select the best payment method—credit, debit, or buy now, pay later—based on a member’s financial habits and available rewards.
Such possibilities, he said, present both an opportunity and an obligation for credit unions: to educate members about AI’s benefits while helping them understand the new fraud risks that accompany it. The Eye on Payments study found one in 10 consumers experienced card fraud last year, most frequently through online impersonation schemes.
“Eighty-five percent of consumers say they trust their credit union for financial advice,” Pierce noted. “That’s a powerful advantage. CUs need to activate that trust by teaching members how to protect themselves and how to use emerging tools safely.”
Credit Cards: The Biggest Growth Opportunity
Tom Pierce
While AI may dominate headlines, Velera’s data also revealed a more immediate area where credit unions can grow: credit cards. Nearly 45% of credit-union members said they would be interested in getting a credit card from their FI, far outpacing interest in personal loans (26%), auto loans (24%), and mortgages (18%).
At the same time, fewer than one in five CU members currently hold a credit-union-issued card. Pierce said that disconnect should serve as a wake-up call.
“There’s strong demand out there,” he said. “Credit unions that invest in robust card programs—with fast digital issuance, real-time approvals, and strong loyalty rewards—are going to win.”
Velera’s data back that up: Four in ten members applied for a new credit card in the past year, and many cited direct mail from their financial institution as the trigger. But members now expect a far more seamless experience—immediate decisions, instant digital cards, and rewards that feel personal.
Digital Payments Are The New Normal
Beyond cards, the study confirms that once-emerging payment types—P2P transfers, digital wallets, contactless cards, and buy now, pay later—have gone fully mainstream. Seven in ten consumers now use a mobile wallet at least a few times per year, and usage among Baby Boomers has climbed sharply, with nearly 40% using mobile wallets several times a year.
Eighty percent of members now have contactless cards, and half say they use them multiple times per week. Pierce cautioned that any CU still lagging in digital-wallet compatibility or tap-to-pay adoption “will struggle to compete.”
“We’ve reached the point where contactless and digital wallets aren’t differentiators—they’re table stakes,” he said. “Credit unions need to ensure their cards can be activated and used in every digital channel their members prefer.”
Education, Innovation, And Readiness For 2026
Looking ahead to 2026, Pierce said two priorities stand out:
- Expand and modernize credit-card programs to capture rising consumer demand
- Invest in education and fraud prevention around AI-driven tools and emerging payment methods
He emphasized that Velera—and its card-network partners—are already developing AI-enhanced payment capabilities to help credit unions keep pace.
“The important thing now,” he said, “is for credit unions to learn, prepare, and be ready to guide their members through what’s next. The payments ecosystem is evolving faster than ever, and credit unions have to evolve with it.”
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