Debit and Credit Card Spending Surges as Fuel Prices Soar
Recent data from the Central Bank reveals a significant increase in debit and credit card spending in May, surpassing €10 billion, on the back of over 261 million transactions. This surge is notably attributed to increased expenditure at petrol stations, amid an ongoing fuel crisis stemming from geopolitical tensions. (Source: Irish Examiner)
Monthly and Annual Growth Evident
The total card spend in May marks a monthly increase of €360 million, or 3.7%, compared to April. Annually, both the value and volume of transactions have shown robust growth, rising by 7.72% and 8.34% respectively. Notably, spending at service stations saw a more than 10% rise from May 2025, due to surging fuel prices linked to the war in Iran.
Fuel Sector Impact
Service stations and automated fuel dispensers registered increases of €37.37 million (10.5%) and €5.22 million (14%) respectively, compared with May 2025. A 5% rise in average transaction values was also reported. According to the Central Bank, “Higher fuel prices, which peaked in March 2026, likely contributed to higher nominal spending.”
Domestic and Retail Spending
Domestic card spending in May climbed by €240 million (2.97%) to €8.29 billion from the previous month. This encompassed 220 million transactions, up by 6.68%. Retail spending saw an increase of €169.19 million (6.12%), while social spending jumped 12.31% to €77.68 million. Services spending also grew by 3.11% to €18.45 million, despite a slight decrease in the average transaction amount, which fell to €37.69.
Services Sector Flourishes
The services sector showed notable growth, with spending on hotels, motels, and resorts reaching €305.36 million, a 14.78% increase from April. The Central Bank suggests this reflects the onset of the summer travel period, along with heightened tourism demand.
POS and Online Payment Trends
Point of Sale (POS) payments in May amounted to €4.31 billion, up 6.56% from April, while online payments slightly decreased by 0.64% to €3.98 billion. Both channels have shown consistent growth over the year, with POS payments up by 6.04% and online payments experiencing an 8.57% rise.
Rise in Contactless and Mobile Wallet Payments
Contactless payments, part of domestic POS spending, reached €2.89 billion, an 8.76% increase from April. Mobile wallet payments rose to €2.08 billion, marking a 10.15% monthly increase. Annually, contactless and mobile payments have demonstrated strong growth, with increases of 14.13% and 25.65% respectively.
Cash Withdrawals Decline
Cash withdrawals totaled €1.08 billion in May, showing a 4.15% monthly increase. However, both value and volume have decreased compared to May 2025, dropping by 6.42% and 9% respectively. Despite this, the average withdrawal amount increased by 2.84% to €149.97.
This data paints a picture of an economy responding dynamically to external pressures, with consumer behavior shifting notably in response to rising fuel costs.
