Key Takeaways:

Growth rates improved for debit in April and remained consistent for credit. Debit purchases were up 5.8% and credit purchases were up 1.9%, while debit transactions were up 3.7% and credit transactions were up 2.3%. The Goods sector was again the top contributor to growth in both credit and debit purchases, which may indicate consumers buying now to avoid potential upcoming tariff impacts. The Service sector remained a top contributor to year-over-year growth, with insurance sales/premiums having notable increases, up 6.8 for credit purchases and up 6.9% for debit purchases.
Growth in digital payment transactions was up 6.4% on credit and 10.9% on debit for April, while growth in physical card transactions was down 0.8% for credit and down 1.1% for debit. Within digital payments, the growth was attributable to increases in tokenized transactions. Within physical card transactions, growth in contactless transactions was offset by declines in chip/EMV and mag stripe activity.
The 12-month CPI through April increased by 2.3%, down 0.1% from March. Half of the increase was attributable to the shelter index. Energy increased, influenced by natural gas and electricity, offsetting drops in gasoline. Core inflation, which excludes food and energy, remained at 2.8% for April.

What Credit Unions Should Do Now:

Actively promote mobile wallet offerings across marketing channels, as member adoption continues to grow. Mobile Wallets now account for 9% of debit transactions and 6% of credit transactions across both CP and CNP channels.
Ensure members have – and are actively using – contactless cards. Dual interface cards are now the norm, with 18% of all debit card transactions and one in four credit transactions now tapped at the point of sale.
Provide new and existing members with an end-to-end digital credit card origination experience. Partner with a digital consultant to help your credit union fully understand your members’ experiences and identify ways to improve by integrating key technology features.
Implement a card-on-file solution, enabling cardholders to seamlessly update payment methods across merchants, for a frictionless digital experience.
Re-engage low active and inactive credit and debit cardholders through a targeted Activation/Retention campaign.