Overview
- Visa reported U.S. retail spending up 4.2% year over year from Nov. 1 to Dec. 21, while Mastercard measured a 3.9% increase, with both sets of figures preliminary and not adjusted for inflation.
- Online purchases grew about 7.8% and drove the gains, yet physical stores still accounted for roughly 73% of payment volume, according to Visa.
- Electronics led category growth at about 5.8% with apparel also strong, as home improvement and furnishings trailed.
- Household leverage climbed, with credit card balances at a record $1.23 trillion and average holiday debt around $1,223, reflecting greater use of credit cards and buy now, pay later plans.
- Payments firms highlighted wider use of AI tools for product discovery and price comparisons and noted that late-season shopping beyond Dec. 21 could slightly lift final totals.