TAMPA--Consumer activity remained strong in March, with ongoing growth in debit and credit card transactions and purchases, according to the April edition of the Velera Payments Index.
Despite skyrocketing gas prices since the start of the war with Iran, spending remained robust in the Goods, Services and Money Services sectors, fueled in part by higher income tax returns and some temporary relief from TSA bottlenecks during the partial government shutdown. Eroding consumer sentiment and soaring inflation – both driven by the war with Iran – are evident in key economic indicators, even as a temporary two-week ceasefire has offered limited stabilization, Velera noted.
“Consumers are still showing up and spending, even with many factors weighing on how they feel about the economy,” said Denise Stevens, EVP, chief product and technology officer at Velera. “Surging gas prices, elevated inflation and overall uncertainty have not stopped spending activity – but they are changing behavior. We’re seeing consumers be more intentional about how they pay and spend, including continued notable growth in digital wallets. At the same time, Buy Now, Pay Later has gone mainstream as a budgeting tool, not just a checkout convenience.”
Key takeaways for March 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
The full report is available for download here.