Debit Keeps the Edge as August Card Spending Growth Stays Positive
By CU Today Staff —
TAMPA--August card spending growth reflected a continued positive trend in consumer engagement. While debit purchase growth continued to outperform, credit purchase growth remained positive, but declined from recent highs, according to the latest Velera Payments Index.
Spending in August was supported by back-to-school shopping and elevated gasoline prices. Although consumer sentiment softened and wage growth signals remained mixed amid inflation uncertainty, the broader economic environment remained generally supportive of consumer spending.
Key Takeaways for August include:
· Consumer spending continued to show strength in August, with debit purchases increasing 6.1% year over year, supported by 3.4% growth in transactions. Purchase growth continued to be driven by the Money Services, Goods and Gasoline sectors. Credit purchases rose 3.6% year over year, with transaction growth of 2.8%. The Gasoline sector returned as the leading contributor to credit purchase growth, followed by Goods and Services.
· For 2026, online gambling debit activity remained steady through July, avoiding the typical summer lull, driven by a surge in year-over-year growth during the six weeks that the FIFA World Cup global soccer competition was held in the U.S.
· Generation Z accounted for nearly two-thirds of the year-to-date prediction market debit transactions and purchases, yet had the lowest average wagers among generational segments. Kalshi represented 88% of all prediction market debit transactions year to date, but had the lowest average purchase amount.
“Online gambling and prediction markets are a small share of overall card activity, but they’re moving into the mainstream faster than many financial institutions expected, particularly among younger consumers,” said Karen Postma, Senior Vice President, Risk Solutions, Velera. “The concentration of prediction market activity among Gen Z, combined with evolving regulation and the potential for market manipulation, creates new considerations for fraud prevention, member education and financial wellness. Credit unions need to understand what’s showing up in member activity so they can identify emerging risks, educate members and make sure their fraud strategies can keep pace as these markets evolve.”
The full report is available for download here.
Originally reported by CU Today.