Key Takeaways:

Growth remained slow for credit and debit in June, with debit trending downward. Debit purchases were up 3.6%, with the Goods and Money sectors contributing to 80% of the growth. Credit purchases were up 1.3% with the Services sector comprising the entire increase, fueled by insurance premiums. For June, debit transactions were up 2.2% and credit transactions were up 1.1%.
The 12-month CPI through June increased by 2.7%, up 0.3% from May. The Shelter index continues to contribute significantly to the monthly increase, up 0.2 percent in June, while the Energy index increased by 0.9 percent. Core inflation, which excludes food and energy, is up 0.2% at 2.9% for June.
Overall credit card balances were down for the first time in Payments Index reporting. While the rate of growth has been in decline since its peak in September 2022, year-over-year growth in overall balances was down 0.6% for June 2025. Average credit card balances have been very flat for each month of 2025, with June finishing at $2,949.

What Credit Unions Should Do Now:

Credit unions should highlight their credit and debit card features, encouraging usage through awareness campaigns.
Ensure your credit card is the card of choice during the holiday spending season by keeping credit lines competitive.
Focus on card acquisition strategies. With overall card activity for debit and credit softening, account growth is paramount for continued portfolio growth. Employ a holistic approach, leveraging in-person cross-selling opportunities, in-branch signage, social media and digital cross-selling through in-app and online banking display ads and messaging, as well as targeted email and direct mail offers.
New ways to pay, like Amazon One, make it even more critical for credit unions to maintain top-of-wallet status for digital payments and purchases. Meet your members where they are with digital solutions like Amazon One, contactless and digital issuance to provide a connected member experience that boosts card usage.