By Matthew Goldman, Founder, Totavi

The U.S. consumer credit card market enters 2026 in a position of strength but growing tension. Credit cards are one of the most widely used and profitable consumer financial products in the country, with trillions of dollars in annual purchase volume, entrenched consumer behavior, and deeply embedded payment rails. At the same time, the product category faces mounting pressure from a number of mounting headwinds, including high interest rates, affordability concerns, regulatory scrutiny, and renewed political focus on interchange.

This combination creates a paradox for businesses: Credit cards are used more than ever, but also more controversial. For issuers, networks, fintechs, and retailers weighing the costs and benefits of the market, we believe 2026 will be defined by how effectively they respond to affordability, transparency, and consumer trust, without breaking the economic engine that makes cards viable in the first place.

Credit card spend and balances continue to grow, but where the growth is coming from matters.

The U.S. credit card market remains large and continues to grow. According to the Nilson Report, U.S.-issued general-purpose credit cards generated $6.136 trillion in purchase volume in 2024, representing a 5.3% year-over-year increase. Outstanding receivables reached $1.346 trillion at year-end 2024, up 7.9% year over year, while the 30 largest U.S. issuers held $1.208 trillion in receivables at midyear 2025, up 4.8%.

Federal Reserve data tells a similar story. The Federal Reserve Bank of New York reported that U.S. household credit card balances reached $1.23 trillion in the third quarter of 2025, increasing by $24 billion from the prior quarter. Credit card balances are now well above pre-pandemic levels, reflecting both inflation-driven spending and heavier reliance on revolving credit.

Based on these numbers, no one could argue about growth in the marketplace. But when we dig into the numbers, we see issues in the relationship between spending growth and revolving balance growth. 

In recent periods, balances have grown as fast or faster than the purchase volume. Historically, this pattern tends to emerge when households are under financial strain. Consumers are no longer using credit cards for convenience or rewards, they now need them to manage their cash flow under financial strain. 

As credit card usage grows, so does concern about high APRs and high merchant acceptance costs.

APRs remain historically high, amid pressure to cap them