Consumers and retailers have been inundated with rising costs and an uncertain economy for the past few years. And while many experts claim that economic pressures are lightening up, the data is proving otherwise.
As holiday shopping ramps up and consumers flock to stores to gather last-minute gifts for their loved ones, new Ingenico data shows how shoppers are adjusting their spending and payment habits amid rising costs.
Based on the findings, one thing is clear: consumers are not cutting back on holiday spending.
Instead, they are strategically using credit and seeking flexible payment options to navigate higher costs while maintaining gift quality, according to the data. This trend is most pronounced among mid-life shoppers and those in high-cost regions, highlighting the intersection of age, location and payment behavior this holiday season.
Majority of Holiday Shoppers Plan on Using Credit
According to Ingenico’s data, 63% of shoppers aged 35 to 44 plan to use more credit this holiday season, reflecting the financial pressure of mortgages, childcare and other expenses. Instead of cutting back on gifts, this group is leveraging credit to maintain quality while managing budgets.
“A TransUnion U.S. Consumer Pulse study found that inflation was the top concern for 86% of consumers, and a potential recession and high housing prices also concern them,” notes Jaime Hawkins, head of Banking & Acquirer Sales (USA) at Ingenico.
“But remember, using a credit card is easy,” Hawkins continues. “Holiday shoppers trying to find and purchase everything on their lists as quickly as possible don’t want to have to stop at an ATM for cash or even stop to check the balance in a bank account. Credit lets them purchase what they need to and pay the bill later.”
However, Hawkins warns retailers that using a credit “card” doesn’t mean customers will be inserting a physical card into a payment terminal.
“More and more are equipped with a contactless card that they just tap on a card reader or a mobile wallet that stores payment data,” he says. “Retailers should anticipate all the ways that customers want to pay and make sure they are ready to deliver on those expectations.”
Consumers Desire Flexible Payment Options
According to Ingenico’s data, 74% of consumers say it is important to have flexible payment options available in-store,underscoring that payment flexibility is now a key factor for most shoppers.
“Several studies show purchase abandonment online,” notes Hawkins. “PYMNTS found that 70% of people say it influences where they shop, and an e-commerce retailer can see the point at which they lose a customer. It may be less obvious in a physical store, but retailers have anecdotes about people walking away when the store doesn’t accept a certain card brand or a type of payment method. There are likely many more sales that retailers have lost that they don’t even realize.”
For the consumer, payment flexibility isn’t just a matter of preference, according to Hawkins. It can be what makes a purchase possible.
“Without options, the customer may not be able to afford the purchase,” he says. “Payment flexibility enhances customer experiences, but it also helps retailers capture those sales.”
Where are Holiday Shoppers Making Purchases?
Hawkins notes that the big retail winners this holiday season will combine great deals with product availability, easy returns and fulfillment in time for the holidays.
“Big box stores and popular e-commerce businesses are positioned well to make it happen, but any store can strike gold with the right strategy,” he says. “Shoppers very well may check out discount stores and thrift shops for some of their gifts to stretch their budgets.”
Remember, though, that holiday shopping usually puts gift-givers on the hunt for specific items that their friends and family want. Shoppers will look for the best quality item at the best price, available in time for the holidays, and with a guarantee that they can return it later if it isn’t right.
For retailers looking to gain loyal shoppers from the swarm of holiday consumers, Hawkins says that understanding the economic pressures that customers may be under this year can help make their experiences better.
“Retailers should also learn from this holiday season, tracking their customers’ payment choices, shopping behaviors and use of AI to help inform their decisions for 2026,” he advises.
