State of Debit 2026

Consumers are experiencing significant financial strain despite a broadly stable economy. Inflation has eased but remains high enough to erode purchasing power, hitting lower income households hardest as essential categories like housing and food continue to absorb a large share of their budgets. Savings rates have fallen to near historic lows, signaling that many consumers are depleting reserves and increasingly relying on credit to manage expenses. This financial pressure, coupled with richer rewards and stronger fraud protections, has accelerated the long term shift from debit to credit usage, even as debit remains essential for everyday spending. 

At the same time, the deposit landscape is beginning to shift. Falling interest rates are drawing money back into traditional financial institutions, strengthening core deposits and reinforcing ties that fuel debit activity. Debit remains resilient—especially among younger consumers and lower income households—and co-branded rewards debit and small business debit solutions, are creating fresh engagement and revenue opportunities. Faster payments are gaining traction across ACH, RTP, FedNow, and card based rails, reshaping expectations for speed and liquidity. The biggest uncertainty ahead is regulatory: potential changes to debit interchange caps, issuer thresholds, and open banking rules could significantly alter incentives and profitability across the market.

Key questions discussed in this report: 

• How are consumers and small businesses using debit products?
• How are debit products changing over time?
• What regulatory changes will have a potential impact on the debit market?

Companies Mentioned: 

Akoya, Aldi, Bank Policy Institute, CFPB, Comerica Bank, Federal Reserve, Fiserv, Gap, JP Morgan Chase, Mastercard, Morningstar, Nacha, Plaid, Southwest Airlines, Sunrise Banks, N.A., Target, The Clearing House, United Airlines, Visa, Walmart, Whole Foods, Wyndham, Yodlee, Zelle