TAMPA--Debit and credit card transactions and purchases strengthened in February, despite a backdrop of continued slow job growth, subdued consumer sentiment and rising global tensions, reported Velera, citing data from the March edition of the Velera Payments Index.
"What we’re seeing in this month’s data is a reminder that delinquency trends don’t move in a straight line. Yes, overall delinquencies are up compared with a year ago, but the story underneath is more nuanced,” said David Knowles, SVP of disputes and collections operations at Velera and President of TriVerity. “Younger consumers are feeling the most strain, and lower‑income households continue to show sharper swings in both delinquencies and credit utilization. At the same time, subprime borrowers have been remarkably steady — something we wouldn’t have predicted a few years ago. Put together, it paints a picture of a consumer landscape that’s still adjusting to higher costs and shifting financial cushions, with very different experiences depending on age and income."
Key takeaways for February include:
- Year-over-year growth in transactions and purchases in February was strong across both debit and credit. Debit purchases increased by 7%, with the Money Services and Goods sectors accounting for two-thirds of that growth. Credit purchases were up 4.4%, with the Goods and the Service sectors accounting for 68% of the entire increase. For February, debit transactions were up 7% and credit transactions rose by 4%.
- Since Velera's last delinquency Deep Dive (February 2025), delinquencies have begun trending upward after steadily declining for the first 10 months of last year. Overall credit card delinquencies for February 2025 were 2.66%, up 0.16% year over year. "Additionally, we saw higher delinquency rates among younger age groups, as evidenced by the notable increase in the youngest generational segment (Younger Gen Z), up 10.67% year over year to 13.69% in February 2026," Velera said.
- CPI rose 0.3% in February, with the 12-month inflation rate remaining steady at 2.4%. Shelter was the primary driver of the monthly increase.
- "Gasoline prices have increased sharply, rising $0.57 per gallon (or 19%) since the start of the U.S./Israel war with Iran on Feb. 28. It is unknown how long the market will experience higher energy prices because of the conflict or what the impact will be on the U.S. economy. As an informal calculation, each $10 increase in the price of a barrel of oil equates to a 0.2% increase (approximately) in inflation," the company noted.
The full report is available for download here.