The April edition of the Velera Payments Index marks the six-year anniversary since its inception, which launched in 2020 as a weekly snapshot of transaction activity during a period of unprecedented disruption amid the COVID-19 pandemic. Over the years, the Payments Index evolved into a monthly view of the trends shaping today’s payments landscape.

In this edition, we saw that consumer activity remained strong in March, with ongoing growth in debit and credit card transactions and purchases, despite declines in consumer sentiment as global tensions persisted. This month’s edition featured a quarterly metrics update, which includes the latest data on credit card balances, delinquencies and mobile wallet activity.

According to the March Consumer Confidence Index, consumer confidence inched higher, up 0.8 points to 91.8. While there was modest improvement in three of the five components on the index, the overall score has declined since 2021. The preliminary April 2026 University of Michigan Index of Consumer Sentiment results dropped 11% from March, posting a 5.7-point loss to 47.6. All demographics (age, income and political party) posted declines in sentiment. According to open-ended survey comments, many consumers blame the war in Iran for unfavorable economic conditions.

Key Takeaways

Key takeaways from the April edition of the Payments Index include:

Increases in tax refunds helped offset the impact of surging fuel prices as year-over-year growth in transactions and purchases for March remained strong for both debit and credit. Debit purchases increased by 5.9%, with the Money Services and Goods sectors accounting for almost two-thirds of that growth. Credit purchases were up 4.8%, with the Goods and the Service sectors accounting for 63% of the entire increase. In March, debit transactions were up 3.4% and credit transactions rose by 3.6%.
The Consumer Price Index surged 0.9% in March, taking the 12-month inflation rate to 3.3% and marking the largest increase in two years. Gasoline was the primary driver, accounting for roughly 75% of the increase. This was the first inflationary update since the war with Iran began.
Increased gasoline prices accounted for roughly 15% of the growth in debit and credit purchases for March. The average per-gallon price of gasoline is up 40%, or $1.19, since the war started in February and is up 30%, or $0.96, year over year. Our data shows increased gasoline consumption in the weeks since the war began.
Digital wallets continued to gain momentum. In March 2026, digital wallets accounted for 12.6% of all debit transactions, up from 10.2% a year earlier, and 7.3% of all credit transactions, up from 5.6% a year earlier.

Checking In: Gasoline Consumption

This edition of the Payments Index sought to explore whether consumers have changed their behavior due to the higher gasoline prices. Despite the higher gasoline prices, consumers appear to be purchasing more gallons and making more transactions, at least in the short term. Monthly Gasoline sector purchases were up 14.1% on debit and up 18.1% on credit. Gasoline transactions were up 5% on debit and 5.2% on credit when compared to March 2024. Consumers might be filling up their gas tanks more frequently due to concerns about future prices and availability. Velera will continue to monitor consumption as we head into the summer travel period, when peak spending activity in the gas sector is expected.

Checking In: Balance Transfers

The first quarter of the year tends to be the peak month for balance transfer/convenience check usage — whether to pay off high-interest rate credit cards from holiday spending or to pay taxes owed. The Payments Index consistently sees an annual cycle with elevated activity in the first three months of the year. When compared to March 2025, the number of balance consolidation transactions was flat (0%); however, the average balance transfer amount was $4,917, up $6 compared to 2025.

What Should Credit Unions Do Now?

Credit unions should consider the following strategies to maintain relevance, maximize engagement and best support their members:

Boost top-of-wallet behavior with strategic awareness campaigns. Running awareness campaigns can be cost-effective ways for credit unions to keep their card top of mind without relying on incentives. Credit unions can reinforce everyday relevance and strengthen top-of wallet behavior by highlighting their benefits and core card features.
Drive seasonal payment growth with targeted, data-driven engagement. Targeted engagement is essential to a strong payments strategy. Use data-driven insights to deliver timely, seasonal campaigns to help boost payment activity, deepen relationships and deliver meaningful value for members. Efficiently leveraging usage campaigns can influence cardholder behavior — especially during high spend periods like summer travel or back-to-school shopping.
Elevate member engagement through proactive, personalized interactions. One of the most frequent touchpoints members have with their credit unions is making payments — which means engagement is a powerful driver of loyalty. Offering proactive, personalized interactions – such as financial education and wellness guidance, loyalty-building rewards and promotion of digital banking capabilities – can strengthen member connections and long-term value.

Looking Ahead

Interest rates were left unchanged after the second Federal Open Market Committee (FOMC) meeting, which concluded on March 18. The Federal Reserve will need to balance the swift inflationary growth from energy prices and the erratic job growth. The next FOMC meeting concludes on April 29.

We hope that our credit unions can make informed and strategic decisions to best serve their members by leveraging insights from this and future editions of the Velera Payments Index.