Velera Payments Index: Consumers Kept Spending In March, But Signs Of Strain Are Emerging
By CU Today Staff —
TAMPA--Consumer activity remained strong in March, with ongoing growth in debit and credit card transactions and purchases, according to the April edition of the Velera Payments Index.
Despite skyrocketing gas prices since the start of the war with Iran, spending remained robust in the Goods, Services and Money Services sectors, fueled in part by higher income tax returns and some temporary relief from TSA bottlenecks during the partial government shutdown. Eroding consumer sentiment and soaring inflation – both driven by the war with Iran – are evident in key economic indicators, even as a temporary two-week ceasefire has offered limited stabilization, Velera noted.
“Consumers are still showing up and spending, even with many factors weighing on how they feel about the economy,” said Denise Stevens, EVP, chief product and technology officer at Velera. “Surging gas prices, elevated inflation and overall uncertainty have not stopped spending activity – but they are changing behavior. We’re seeing consumers be more intentional about how they pay and spend, including continued notable growth in digital wallets. At the same time, Buy Now, Pay Later has gone mainstream as a budgeting tool, not just a checkout convenience.”
Key takeaways for March include:
The full report is available for download here.
Originally reported by CU Today.