ST. PETERSBURG, Fla.–Growth in debit activity remained consistent and improved in credit activity in August, according to the September edition of the Velera Payments Index.
The Index shows debit purchases were up 5.3%, with the Goods, Money Services and Restaurant sectors contributing to more than 80% of the growth.
The new Index includes a deep dive into the Travel sector, a discretionary spending category that has softened in 2025, Velera said.
‘Clear Shift’
“As inflation persists and job growth slows, we’re seeing a clear shift in how consumers prioritize spending – especially in discretionary categories like Travel,” Norm Patrick, vice president, Advisors Plus Consulting, Velera, said in a statement. “While debit and credit activity showed modest gains overall in August, Travel purchases continued to decline for the second consecutive year, with Airlines and Lodging leading the pullback. These patterns reflect growing caution among consumers navigating higher prices and economic uncertainty. For credit unions, this is a critical moment to stay connected to member needs and deliver value through flexible, responsive financial solutions.”
The Key Findings
Velera said key findings in the September Payments Index include:
• Growth in debit remained consistent and improved in credit activity in August. Debit purchases were up 5.3%, with the Goods, Money Services and Restaurant sectors contributing to more than 80% of the growth.
• Credit purchases were up 1.9%, with the Goods, Restaurant and Grocery sectors accounting for the entire increase. For August, debit transactions were up 3.6% and credit transactions were up 2.2%.
• The Federal Reserve’s announcement of a quarter-point interest rate reduction has been long awaited, especially with much weaker job growth updates: August added 22,000 new jobs, while the BLS reduced its current employment revision by 911,000. Fed Chair Jerome Powell signaled two possible further reductions in October and December.
• The 12-month cumulative CPI through August increased to 2.9%, with a 0.4% increase in August. Once again, the Shelter index accounted for most of the monthly increase. Core inflation, which excludes Food and Energy, was up 0.3% to 3.1% for August – the same rate of increase as July.
• Travel purchases for credit and debit were down for the second consecutive year, in stark contrast to the post-COVID boom previously experienced in this discretionary spending category. Year-to-date credit purchases in the Travel sector were down 4.7% and debit purchases were down 1.5%. The largest contributors to the drop in both credit and debit travel purchases were Airlines and Lodging (Hotel/Motel).
The full report is available for download here
