Key Takeaways:

December closed out the year with growth rates similar to those seen for much of 2025, as debit activity growth outpaced credit activity growth. Debit purchases increased by 4.6%, while credit purchases were up 1.8%. For December, debit transactions were up 2.4% and credit transactions rose by 1.6%.
Holiday spending during the 2025 season surpassed 2024 results. Debit purchases were up 6.8% and credit purchases were up 1.7% year over year. Amazon, Walmart, and Target led the way in growth.
Average credit card account balances closed out December 2025 at a yearly high of $3,029, a modest 0.6% (or $18) increase year over year. Credit card balance growth throughout 2025 was moderate, rising 2.3% since January compared with the 3.3% pace in 2024.
The 12-month rate of inflation through December remained unchanged at 2.7%. The largest contributing factor to the increase was shelter, followed by food/groceries and energy.
BLS posted the first set of clean economic updates following the government shutdown, which ended on Nov. 12. While there are expectations of interest rate cuts in 2026, it may be too soon for a cut to materialize in January, following the December quarter-point

What Credit Unions Should Do Now:

Activate card awareness marketing strategies now to position your card portfolios for early-year impact. Reinforce everyday relevance and strengthen top-of-wallet behavior by focusing communications on consumer convenience and core card benefits, such as account alerts, digital wallets and autopay for recurring payments.
Accelerate mobile wallet adoption and boost usage by enabling Tap-to-Add Card functionality, now automatically enabled by Visa and Mastercard. A simple tap of a physical contactless debit or credit card on the back of the phone near the NFC reader replaces manual entry, delivering a seamless and secure onboarding experience that reduces friction.
As delinquency rates continue to rise, balance risk management with member credit growth by activating customizable strategies that can be configured for delinquency and over-limit management, as well as credit limit management, reissue and authorization. Strengthen portfolio performance by retaining profitable accounts, minimizing exposure to underperforming segments and ensuring responsiveness to shifting economic conditions.