ST. PETERSBURG, Fla.–Velera’s new January Payments Index is reporting similar that in December debit purchases among credit union cardholders increased by 4.6%, while credit purchases were up 1.8%.
The report notes that in December, consumer spending growth continued its resilient pace despite lackluster consumer sentiment, and that while credit and debit activity were both positive for the month, debit year-over-year growth continued to outpace credit activity.
The research also cites preliminary January 2026 results from the University of Michigan’s Index of Consumer Sentiment, which found that sentiment inched up for the second month to 54.0 from 52.9. “It’s important to keep these small gains in perspective, as the index is down by over 24% compared to January 2025, with an emphasis on higher prices and a softening labor market,” the report states.
“Velera’s payment trends reflect strong consumer spending that propped up the overall economy in 2025,” Ryan Myers, SVP, Advisors Plus with Velera, said in a statement. “The Fed cut rates in December, and while more cuts are expected in 2026, they’ll likely come slowly given weak job growth. That means spending should hold up, but it will likely be concentrated among higher-income households — widening the K-shaped economy. Credit unions need to get comfortable segmenting their members and tailoring products to manage risk without missing out on payment revenue from more affluent consumers.”
Key Takeaways
According to Velera, key takeaways from its December report include:
- December closed out the year with growth rates similar to those seen for much of 2025, as debit activity growth outpaced credit activity growth. Debit purchases increased by 4.6%, with the Money Services and Services sectors accounting for 80% of the growth. Credit purchases were up 1.8%, with the Service sector accounting for two-thirds of the entire increase. For December, debit transactions were up 2.4% and credit transactions rose by 1.6%.
- For the cumulative three-month holiday period (October-December), growth in spending during the 2025 season surpassed results for the same period in 2024. Debit purchases were up 6.8% and credit purchases were up 1.7% year over year. For growth among the three large retailers during the same period, Amazon, Walmart and Target finished first, second and third, respectively, mirroring 2024.
- Average credit card account balances closed out December 2025 at a yearly high of $3,029, a modest 0.6% (or $18) increase year over year. Credit card balance growth throughout 2025 was moderate, rising 2.3% since January compared with the 3.3% pace in 2024.
The full report is available for download here
