Credit union members increased their spending by debit in April at more than twice the month's elevated rate of inflation, while credit card spending slightly lagged it, according to the nation's largest payments CUSO.
Velera's Payments Index released May 18 showed credit union members whose cards are handled by Velera spent 8.5% more on their debit cards than they did a year earlier, while inflation grew 3.8%. The report said money services, goods and gasoline accounted for three-quarters of the growth.
Members spent 3.1% more by credit card, with gasoline accounting for 35% of the entire increase.
Cody Banks, Velera's SVP for product experience and enablement, said consumers showed adaptability as they continued to spend more by both debit and credit card.
"April's data reinforces a familiar but important theme: Even as higher gas prices and renewed inflation pressures weigh on sentiment, consumer spending behavior has remained steady," Banks said.
The number of transactions in April rose 5% by debit and 2.6% by credit, reflecting in part the impact of inflation, driven by higher oil prices in the wake of the U.S. and Israeli attack on Iran Feb. 28. Debit's average transaction amount rose 3.4% to $47.81, while credit posted a more moderate gain of 0.5% to $71.33.
"The Consumer Price Index surged 0.6% in April, taking the 12-month inflation rate to 3.8% and marking the largest increase in two years," Velera said. "Gasoline was again the primary driver, accounting for roughly 40% of the increase. Also increasing were the house and food indexes."
Velera bases its Payments Index on data from credit unions that have been processing payments with it since January 2024. This month's report encompassed 3.7 billion transactions valued at $189 billion of credit and debit card activity in the 12 months ending April 30.
Contact Jim DuPlessis at Jim.DuPlessis@arc-network.com.
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