TAMPA--Despite a sharp increase in gasoline prices, consumers kept spending in April, posting strong growth in debit and credit card transactions and purchases, according to the May edition of the Velera Payments Index.
As of May 11, the average price for a gallon of gasoline was $4.50 – 44% higher than a year ago and 53% higher (or $1.56) since the war with Iran began on Feb.
“April’s data reinforces a familiar but important theme: even as higher gas prices and renewed inflation pressures weigh on sentiment, consumer spending behavior has remained steady,” said Cody Banks, SVP, product experience and Enablement at Velera. “Debit and credit activity continued to grow, with an increasing share of that activity shifting toward digital and tokenized payment experiences. While factors such as tax refunds provided near‑term support, the broader takeaway is the continued adaptability of consumers and the growing role digital payments play in how everyday spending is managed. For credit unions, this underscores the importance of closely monitoring where spend is evolving and ensuring digital capabilities keep pace with changing consumer expectations.”
According to Velera, key takeaways for April include:
- Transactions and purchases for April remained strong for both debit and credit. Debit purchases increased by 8.5%, with the Money Services, Goods and Gasoline sectors accounting for three-quarters of that growth. Credit purchases were up 3.1%, with Gasoline accounting for 35% of the entire increase. In April, debit transactions were up 5%, and credit transactions rose by 2.6%.
- The Consumer Price Index surged 0.6% in April, taking the 12-month inflation rate to 3.8% and marking the largest increase in two years. Gasoline was again the primary driver, accounting for roughly 40% of the increase. Also increasing were the house and food indexes. 12-month Core-CPI rose to 2.8%.
- Digital wallets continued to gain momentum. Year to date through April, digital wallets accounted for 12% of all debit transactions, up from 9% a year earlier, and 7% of all credit transactions, up from 6%.
The full report is available for download here.