Decking the halls, celebrating with loved ones, and finding great gifts for family and friends are some of the most exciting parts of the holiday season. As customers start their holiday shopping earlier and earlier and companies offer deals well before Black Friday, many people find themselves relying on flexible payments and loans to stretch their dollars further.
In Marqeta’s recent State of Credit report, we asked 2,000 US consumers how they plan to approach shopping this holiday season. Here are some of the key takeaways from the report.
Inflation and Savings Slow
Our data found that as inflation has cooled, 38% of US shoppers surveyed are concerned about being able to make their holiday purchases, down from 51% in 2023. However, more than half (55%) of US consumers haven’t been able to save as much money leading into the holiday season as they did last year.
Holiday Shop Now, Pay Later
The holidays are often a stressful time financially, and Buy-Now-Pay-Later (BNPL) options are easing the burden for many shoppers. The ability to make purchases immediately and pay for them in installments has given many US consumers the flexibility they need to make the holidays happen. Over one-third (37%) of US shoppers surveyed said using credit cards or BNPL will help them make ends meet this holiday season.
Shopping the Sales
The holiday season is host to no shortage of sales and promotions, from Veteran’s Day deals to Black Friday doorbusters. Shoppers have the opportunity to save on holiday gifts, often incentivizing a high volume of purchases. Marqeta’s data found that 40% of US consumers plan to make a purchase this Black Friday, likely taking advantage of deals and savings on holiday wishlists.
Brand Affinity Pays Off
In terms of how people plan to pay for holiday shopping this season, 79% of US consumers are likely to spend on brands with which they have opened an affiliated credit card, while 63% plan to use a traditional credit card and 18% rely on a credit card in a digital wallet. Nearly half (47%) of US consumers still plan to use cash, and 13% of US consumers plan to pay for holiday shopping with BNPL, showing a growing trend toward flexible payment options.
Giving the Gift of Financial Insights
For more insights on how consumers are spending, swiping, and borrowing this holiday season and beyond, take a look at Marqeta’s 2024 State of Credit report.
