Who uses non-bank credit cards? Evidence from Chilean households and insights for financial inclusion and retail credit strategies

Purpose This study examines the determinants of non-bank credit card adoption using nationally representative household data from Chile. While prior research has largely focused on bank-issued credit cards, non-bank credit cards, particularly those issued by retailers and non-bank institutions, have expanded significantly in emerging markets. This paper investigates whether financial ecosystem engagement, including digital financial use and financial depth, plays a more important role than traditional demographic characteristics in explaining non-bank credit card ownership. Design/methodology/approach Using data from the 2024 Chilean Household Financial Survey, the study estimates survey-adjusted probit models to analyze non-bank credit card ownership. Independent variables include financial access, financial depth, digital financial use, traditional financial use and sociodemographic characteristics. Factor analysis is used to construct behavioral financial use indices, and sequential model specifications, robustness checks and Wald tests are employed to assess model stability and variable contributions. Findings The results show that financial ecosystem engagement, particularly digital financial use and financial depth, is more strongly associated with non-bank credit card adoption than traditional demographic characteristics. Income, age and household size are positively associated with adoption, while education becomes statistically insignificant and turns negative after controlling for financial engagement variables. These findings suggest that non-bank credit cards are primarily adopted by households already integrated into formal financial systems rather than serving as entry-level financial inclusion tools. Originality/value This study contributes to the household finance and financial inclusion literature by distinguishing between bank and non-bank credit cards and emphasizing financial ecosystem participation as a key determinant of adoption. It also provides new empirical evidence from Chile, a relevant emerging market with a strong retail credit presence, offering insights for policymakers, retailers and non-bank financial institutions.