Card Transactions and Purchases Show Growth: Velera Payments Index

By Roy Urrico

Consumers have posted the largest growth in monthly purchasing activity in the past four years, and consumer sentiment has shown signs of improvement. Those are among the findings of the July edition of the Velera Payments Index, which also included its quarterly metrics update, featuring credit card balances, delinquencies and digital wallet activity.

St. Petersburg, Fla.-based Velera, which describes itself as the nation’s premier payments CUSO, produces the Velera Payments Index to help credit unions and other financial institutions make strategic, data-informed decisions.

Ryan Myers, SVP, Advisors Plus, Velera.

“Consumer spending remains resilient and is expected to stay strong, yet inflation-adjusted growth has been modest. This mix of spending is shifting toward essential expenses such as gas, energy, housing, goods and healthcare while reducing discretionary spending on categories like travel,” said Ryan Myers, SVP, Advisors Plus, Velera.

Myers added, “Consumers expect inflation to remain elevated, which drives them to make purchases ahead of anticipated increases and actively seek value and discounts. Amazon Prime Day was a great demonstration: U.S. online sales reached a record $26.4 billion, up 9.3% year over year, yet average household spending fell 9%, and most purchases were apparel and household essentials.”

Some Key Takeaways

From the Velera Payments Index for June 2026:

• Year-over-year (YOY) growth in transactions and purchases were the strongest since 2022 for both credit and debit card activity. Debit purchases increased by 8.8%, with the money services and goods sectors accounting for over 60% of the June growth. Credit purchases were up 7%, with the goods sector accounting for over 40% of the increase. In June, debit and credit transactions each were up 5.4%.

• The University of Michigan Index of Consumer Sentiment increased to 49.5, a 10% jump from May’s 44.8. The increase registered across income, wealth and political affiliation segments. “Inflation remains a top concern, with over half of consumers surveyed citing the impact of high prices on their budgets.”

• The Conference Board reported that consumer sentiment in the Consumer Confidence Index increased slightly by 0.6 points to 91.2 from a downwardly revised May result of 90.6. “The slight increase in confidence is attributed to dropping oil prices, with the expectation that inflation could ease in the coming weeks.”

• The Bureau of Labor Statistics (BLS) reported jobs grew by 57,000 positions in June, roughly half the WSJ poll of economists' estimate of 115,000 positions. The unemployment rate slightly dropped to 4.2%, or 7.1 million people. Job growth came in professional and business services, social assistance and health care. Job losses took place in the leisure and hospitality sector.

• The ADP National Employment Report jobs report, which tracks changes in U.S. private employment, reported an increase of 98,000 jobs. Notable increases came in the education and health services, trade, transportation and utilities, and financial activities sectors. the natural resources and mining sectors saw job reductions.

• The BLS reported a 0.4% decline in inflation, lowering the 12-month Consumer Price Index (CPI) to 3.5%. The energy index dropped by 5.7%, more than offsetting the increase reported in the shelter and food indices. Core CPI, which excludes food and energy, remained unchanged in June, finishing at 2.9%. “While flat at the aggregate level, decreases for the month include motor vehicle insurance, communication, apparel, medical care and used cars and trucks. Increases came in recreation, household furnishings and operations, and personal care.”

Source: Velera Payments Index,.

Payment Update

According to Velera’s metrics:

Credit card balances. After trending below 2025 levels, the average credit card balance per gross active account has surpassed last year’s benchmark. In June, the average credit card balance reached $2,960, increasing $11, or 0.37%, YOY. Total credit card balances also continued to grow, rising 1.9% from the prior year.

Credit card delinquencies. In June, the delinquency rate increased to 2.48%, up 9 basis points, or 3.8%, YOY. While delinquencies remain above 2025 levels, the trend continues to follow its typical seasonal patterns.

Credit and debit cards. The Goods sector was the leading contributor of credit purchase growth and ranked second only to money services for debit purchase growth. It also drove the largest share of transaction growth across both payment types. “Spending was likely supported by major promotional events from retailers such as Amazon and Walmart, whose sales campaigns occurred earlier than last year and helped boost consumer activity during the month,” revealed the Velera Index. In addition, the FIFA World Cup, hosted across multiple North American cities, provided an incremental lift in spending, particularly among merchants in the restaurants, travel and entertainment sectors, as well as retailers selling team merchandise, apparel and fan gear.

Discretionary and non-discretionary. “June consumer spending was characterized by strong essential spending and continued discretionary demand,” said the Velera Payments Index. Credit card growth, driven largely by non-discretionary activity, showed purchases increasing 7.9% YOY and transactions rising 5.4%. Discretionary credit activity was positive, with purchases up 2.6% and transactions increasing 0.8%. Debit card spending remained strong across both discretionary and non-discretionary categories. Non-discretionary purchases increased 9% year over year, supported by a 5.4% increase in transactions, while discretionary spending remained healthy, with purchases rising 7.5% and transactions up 5.7% from the prior year.

Card-not-present (CNP) and card-present (CP) activity. While CP transactions continue to account for the majority of overall volume, the share has steadily declined. CP transactions represented 59% of credit transactions, down from 61% a year earlier, and 63% of debit transactions, down from 67%. At the same time, credit cards, CNP purchases increased 9.8% year over year, while CNP transactions rose 11%. Debit CNP activity was even stronger, with purchases and transactions increasing 20% and 19.2%, respectively.

Contactless transactions. These remained on a growth trajectory, with continued expansion in both usage and spend, despite a slowdown in the rates of growth. Since the beginning of the year, the share of credit contactless transactions as a percent of card-present transactions has increased by 6.8%, reaching 63%, while debit contactless penetration has risen by 6.4%, accounting for 67% of debit card-present transactions. The average credit contactless transaction amount increased 5.4% YOY to $53.17, while the average debit contactless transaction grew 5% to $32.28.

Digital wallets. Adoption in this category continued to accelerate, with both transaction share and transaction growth increasing. In June, digital wallet transaction growth reached its highest level of the year, rising 40% for credit and 38% for debit. As a result, digital wallets accounted for 7.9% of all credit transactions, up from 6% a year ago and 13.4% of debit transactions, up from 10.2%.

ATMs. In June, ATM withdrawal and deposit volumes followed divergent trends: Total withdrawals declined 0.6% YOY, while deposits increased 1.8%. Despite lower withdrawal volume, the average withdrawal rose 2.5% to $155.56. Similarly, the average deposit amount increased 1.2% to $475.26. Point-of-sale cashback activity remained in negative growth territory, with total cashback declining 5.2% YOY, though the trend improved. The average cashback amount increased 4.7% YOY to $44.47. As a share of card-present debit transactions, cashback accounted for 0.98%, down from 1.09% a year earlier.

What Credit Unions Should Do Now

The Index recommended opportunities for credit unions such as:

• Boost top-of-wallet behavior with strategic awareness campaigns. “Awareness campaigns are a cost-effective way to keep your card products top of mind year-round. By highlighting your credit union's card benefits and key features, you reinforce everyday relevance and encourage stronger top-of-wallet behavior.”

• Maximize member access without adding branches. “Even as consumers become more digitally engaged, convenient access to in person service remains important. Credit union members value the option to visit a branch, and the Co-op Shared Branch network enables credit unions to provide seamless, secure in-person access across thousands of locations nationwide.”

• Expand members’ purchasing power. “Help qualified cardholders gain greater financial flexibility through data driven credit line increases. Velera’s Fall Credit Line Increase campaign provides eligible members with additional spending capacity ahead of the holiday spending season. According to Velera data, 25%-30% of open accounts qualify for a line increase, creating an opportunity for credit unions to deliver added value to members while boosting card activity.”