How Americans spent with debit — January - March 2026.

Essentials including food, fuel, pharmacy, and utilities accounted for roughly 32% of all Q1 debit transactions, the largest share of any category.

Fast food transactions declined 6.4% from October to December 2025, but in Q1, they grew +18.7%, and sit-down restaurants grew +18.3% alongside them. Both formats accelerated together rather than at each other's expense, with most of the growth concentrated in the February-to-March window.

Spend for key essentials continued to rise in Q1. Utility spend per transaction climbed nearly 15%, a pattern consistent with the cost of heating and peak winter heating bills. Grocery basket spend continued to grow as well: just +6.0% transaction growth but +8.3% in dollars, continuing the trend from Q4 of higher per-trip spend.

Q1 spending is when new-year intentions get tested against budgets, and the 2026 data shows real money behind resolutions. People spent +26.3% more on fitness gear, athletic apparel, and beauty services from January to March.

Transaction volume edged up modestly from January to February (+3.0%), then accelerated meaningfully from February to March, when transaction frequency climbed +15.3% and dollar spend climbed +17.3%.

The timing may also align with two outside factors. The IRS opened the 2026 filing season on January 26 with the first refunds beginning to land in mid-February; and, according to IRS data, the average federal refund in early 2026 was running approximately 10–11% higher than 2025, at roughly $3,500.

Spring weather also began arriving in much of the country during this same window. By March, sporting goods spend was 47% higher than January. Shoe stores climbed +58%, and bicycle shop spend more than doubled (+116%).

Q4 2025 showed every recurring payment category growing, a counterpoint to the popular "subscription fatigue" narrative. Q1 2026 doesn't reverse that conclusion, but it adds a nuance: every subcategory of recurring payments dipped in February before rebounding in March.

Digital goods transactions fell -11.5% from January to February. Cable and pay TV fell -7.9%. Subscription/continuity merchants fell -8.8%. Even digital apps, Q4's fastest-growing recurring category at +25.8%, fell -3.9% in February before bouncing back +15.9% in March. The category was nearly flat over the full quarter (+0.2% spend, +2.9% transactions), the dip and the recovery effectively cancelled each other out.

Experience-economy spending followed the wider Q1 pattern: a February pullback (-7.1% transactions, -12.3% dollars) followed by a strong March rebound (+19.3% transactions, +21.3% dollars).

Q4's fastest-growing experience subcategories were indoor and online: movie theaters surged +112.9% on holiday-season blockbusters, video arcades and online gambling grew.

Q1's leaders followed early spring weather and motivations outside. Tourist attractions and exhibits grew +60.6% in spend. Marinas and marine services grew +37.6%. Bicycle shops more than doubled. Online gambling kept its position as the largest single experience subcategory, although spend was relatively flat compared to Q4.

In Q4 2025 travelers were cautious, even with seasonal demand: airline transactions grew modestly, and hotel spend held essentially flat. In Q1 2026, consumers were booking more travel and paying more for it. Every line item in the travel category grew double digits, and spend growth (+37%) significantly outpaced transaction volume (+22.4%) from January to March, a 15-point gap.

Several factors likely contributed to consumers paying more per booking, from longer stays and more premium experiences, to higher costs. Consumers were hit with the early days of rising jet fuel prices, which began in late February and March due to global supply chain disruptions.

Hotels and lodging, flat through Q4, climbed +38.1% in dollar spend from January to March on +22.4% transaction growth. Travel agency transactions grew 24%, the fastest of any travel subcategory, with average ticket value up +42.5%. Cruise lines added another 15.8% on top of Q4's gains, with another large average ticket increase of (+34.7%). Airlines posted +36.0% spend growth on +21.5% transactions.

In Q4 2025, 59.4% of debit transactions were digital. In Q1 2026, digital transactions increased to 63.6% with Card on File payments driving most of the growth.

Spring weather opened the project window, and consumers spent +45.5% more by March. Transactions also grew +22.3%, with most of that growth concentrated in February-to-March (+33.5% spend, +32.8% transactions).

The growth was wide and consistent across the category. Home supply warehouse stores, the largest subcategory in Q1 spend, grew +44.8%. Hardware stores grew +76.9% in spend. Garden and lawn supply stores more than doubled in transactions (+103.7%) and grew +144.1% in spend.