The Velera Payments Index: February 2026

Angel Siorek

​Velera – the nation’s premier payments CUSO and an integrated financial technology solutions provider – published the February edition of the Velera Payments Index, including a deep dive into Buy Now, Pay Later activity.
 
While consumer sentiment continued to erode in January, actual consumer spending remained resilient. There was no change in the positive trend from January results, with year-over-year growth for both transactions and purchases. The 12-month rate of inflation through January fell to 2.4%.
 
The Conference Board reported that consumer sentiment in the Consumer Confidence Index dropped sharply in January, down 9.7 points to 84.5. The December results were upwardly revised by 5.1 points, making the change for the prior month slightly positive. The January results reflected declines across all five subsets of the index, dropping to its lowest level since May 2014, when it was 82.2. In the preliminary February 2026 results, the University of Michigan Index of Consumer Sentiment posted a one-point gain, up to 57.3. Using the year-over-year complete data, this survey is down 20% from January 2025. Consumers expressed concerns about the erosion of personal finances and the risks associated with job losses.
 
The BLS reported that job growth surged in January, adding 130,000 jobs — more than twice the growth the WSJ poll of economists expected. The overall unemployment rate dropped to 4.3%, or 7.4 million people. January job growth came from the healthcare, social assistance and construction sectors, while job losses were reported in the federal government and financial activities sectors. The January ADP jobs report, which tracks changes in U.S. private employment, showed a modest increase of 22,000. Growth was centered in education and health services, financial activities (contrary to the BLS report) and construction. Job declines were noted in the professional and business services and manufacturing sectors. The ADP payroll population represents 26 million U.S. private-sector employees.
 
For January, the Bureau of Labor Statistics (BLS) reported a 0.2% increase in inflation, bringing the 12-month Consumer Price Index (CPI) down to 2.4%. The largest contributors to the monthly increase were shelter and food, both up 0.2%, which were partially offset by a 1.5% decline in the energy index. Core CPI, which excludes food and energy, rose 0.3% in January, lowering the 12-month Core CPI to 2.5%. Categories contributing to the Core CPI increase included recreation, airline fares, medical care, personal care and communication, while used cars and trucks, household furnishings and operations, and motor vehicle insurance posted declines.
 
The first Federal Open Market Committee (FOMC) meeting of 2026 concluded on Jan. 28, where interest rates were left unchanged. The stronger-than-expected job growth in January may decrease the likelihood of an interest rate reduction, which could come at the conclusion of the next FOMC meeting on March 18.
 
“Members are telling us they want BNPL to work with the money they already have, not around it,” said Angel Siorek, vice president, Product Management Velera. “Every time a payment flows through a third-party BNPL app, the credit union loses a little visibility into the member’s day‑to‑day financial life. When credit unions bring BNPL into their own digital experience — including wallets like Apple Pay — and use member‑centric criteria, they can keep those payments in their ecosystem and turn installments into a tool for engagement and financial wellness, not just another checkout option.”
 
Key takeaways for January include:

• Growth in transactions and purchases for January continued at the same pace, proving the resilience of consumer activity. Debit purchases increased by 6%, with the Money Services and Services sectors accounting for 70% of that growth. Credit purchases were up 2.5%, with the Goods and the Service sectors accounting for 60% of the entire increase. For January, debit transactions were up 3.4% and credit transactions rose by 2.4%.
• Buy Now, Pay Later (BNPL) payments and transactions facilitated by cards grew by 22% and 12%, respectively, for the top BNPL merchants over the last year; however, growth gradually slowed throughout 2025.
• CPI rose 0.2% in January, with the 12-month inflation rate easing to 2.4%; shelter and food were the primary drivers of the monthly increase.
• Stronger-than-expected job growth may impact the likelihood of an interest rate reduction at the next FOMC meeting, which concludes on March 18.

 
The full report is available for download here 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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