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Velera publishes August edition of Velera Payments Index

Tuesday, August 18, 2026 — 17:24:37 (UTC)

St. Petersburg, Fla., Aug. 18, 2026—Today, Velera – the nation’s premier payments CUSO and an integrated financial technology solutions provider – published the August edition of the Velera Payments Index, which takes a closer look at business credit cards, highlighting how they compare with consumer cards and where they may present new growth opportunities for credit unions serving small and medium-sized businesses.

July card spending growth results reflect a continued positive trend in consumer engagement. While debit purchase growth continued to outperform, credit purchase growth remained positive while moderating from recent highs. Spending in July was supported by back-to-school shopping, which helped offset the shift of promotional retail activity from July 2025 into June this year. The broader economic environment remained generally supportive of consumer spending, with mixed-to-improving consumer sentiment, steady wage growth and some easing of inflation.

Consumer confidence indicators diverged in July, reflecting ongoing caution alongside emerging signs of improvement. The University of Michigan’s Index of Consumer Sentiment rose to 55.2, up 11.5% from June and marking its second consecutive monthly gain. Lower gas prices and resilient consumer spending helped drive the improvement, with gains observed across income, education, wealth and political party affiliation. Despite these recent improvements, sentiment remains 11% below its level from a year ago, underscoring the continued impact of elevated prices on consumers’ economic outlook. By contrast, the Conference Board’s Consumer Confidence Index fell 1.4 points to 90.8, down from an upwardly revised 92.2 in June.

The labor market showed signs of softening during July 2026. The Bureau of Labor Statistics (BLS) reported an unexpected loss of 23,000 jobs, a sharp contrast to the WSJ poll of economists' expectation of an 83,000-job gain. The unemployment rate edged down to 4.1%, caused by the labor force participation rate slipping to 61.4%, while wage growth also moderated to 3.15%. Employment declined in local government, education and retail trade, while healthcare continued to add jobs. Meanwhile, the ADP jobs report showed private-sector payrolls increased by 44,000 jobs in July, though hiring slowed from the previous month and fell short of expectations. Gains were concentrated in education and health services, financial activities and professional and business services, while employment declined in leisure and hospitality, as well as in trade, transportation and utilities. Annual pay growth for job changers accelerated to 4.4%, the fastest pace in nearly a year.

Inflation trends moved in a more favorable direction for consumers. The U.S. Consumer Price Index (CPI) rose 0.1%, bringing the 12-month annual inflation rate to 3.4%, down slightly from 3.5% in June. Shelter was the primary driver of monthly inflation, accounting for roughly two-thirds of the increase. Medical care, airline fares and food away from home also posted notable gains. However, declines in several volatile categories, including energy and motor vehicle insurance, helped keep headline inflation in check. Core CPI, which excludes food and energy, increased 0.2% in July after remaining unchanged in June.

Against this backdrop, the Federal Open Market Committee (FOMC) is widely expected to leave interest rates unchanged at its September 15-16 meeting. The meeting will be closely watched, as it will include an updated Summary of Economic Projections (SEP), which provides policymakers’ outlook for economic growth, inflation, unemployment and the future path of interest rates over the next few years.

“Business cards may represent a smaller share of overall card activity, but they point to a meaningful opportunity for credit unions,” said Sheba Carnes, Vice President, Product Management, Velera. “Small businesses are often highly engaged relationships, and many already look to credit unions for service, guidance and community connection. As these businesses expand, credit unions have an opportunity to grow with them by offering the payment solutions, expense management tools and financial support that help them manage cash flow, separate business and personal spending, and deepen the relationship over time.”

Key takeaways for July include:

· Consumer spending continued to show strength in July, with debit purchase growth remaining strong at 8.8% year over year and credit purchases increasing 2.7%, despite moderating from recent highs as promotional sales events from Amazon and other major retailers shifted into June. Early back-to-school shopping helped sustain momentum. Money Services, Goods and Gasoline were the primary drivers of debit purchase growth, while Gasoline and Services led credit purchase growth.

· July inflation remained modest, with CPI increasing 0.1% and the annual rate edging down to 3.4% as declines in energy and other volatile categories helped offset higher shelter costs.

· Year to date, business credit cards accounted for only 3.2% and 8.4% of overall credit transactions and purchases, respectively, but outperformed consumer credit cards in transactions per account, purchases per account, average purchase and average interchange rate.

· Business card transactions and purchases represented 25.8% and 42.7% of overall credit card activity year-to-date, respectively, for the smaller financial institutions studied.

The full report is available for download here www.velera.com/insights/payments-index/august-2026-business-card-trends, or can be shared as a PDF upon request. Please let us know of any questions or additional needs, or if you’d like to coordinate an interview.

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Source: Company press release.

Categories: Reports and research