Credit card spending per card declines 2.4% year-on-year in July

Credit card spending metrics showed weakness in July, with average spending per card declining 2.4% compared to the same month last year, according to industry data. The decline underscores persistent headwinds facing per-card transaction values even as card issuers continue to expand their portfolios aggressively.

The divergence between card issuance growth and transaction volume growth has emerged as a key concern for the sector. While banks and financial institutions continue to issue new cards at a robust pace, the aggregate transaction volumes have not kept up with this expansion, diluting average spending metrics across the card base.

This trend reflects a shifting consumer landscape where new card holders may take time to activate and fully utilize their credit facilities. The expansion of credit cards into newer customer segments, including those with lower spending capacity, has also contributed to the pressure on per-card averages.

The July figures suggest that market saturation and changing consumer spending patterns continue to pose challenges for credit card monetization. Industry watchers will be closely monitoring whether transaction volumes accelerate in coming months to align with the pace of card issuances.