Published On: Fri, Dec 27th, 2019

42% of Shoppers Expecting to Charge Gifts This Holiday Season Using Mobile Payments

Discover’s annual Holiday Spending Survey gives a little insight into how consumers expect to pay for their holiday spending this year. A lot of consumers, over 42%, expect to pay for their gifts on their credit cards.

Millennials are expected to spend more this holiday season than any other generation.

Only 16% of boomers expect to spend more this holiday season compared to 35% of millennials who expect to spend more this year than last year.

Mobile spending is expected to increase, as fewer consumers flock to retail stores. Online sales will remain key this holiday season, with mobile devices used in 33% of US consumer purchases. 

Credit cards will account for most purchases – up to 42% of all purchases are expected to be made with credit cards. Two years prior, only 32% of all purchases were made on credit. Convenience is key for younger shoppers, as they prefer charging purchases rather than going to ATMs at retail stores.

Identity theft and fraud concerns have dropped, too. Fewer consumers are concerned with identity theft and fraud, but Gen Z purchasers have the least concern. Discover’s survey found that 42% of Gen Z consumers are not at all concerned about identity theft. 

Discover, and other credit card companies, are offering zero fraud liability to help alleviate consumer concerns when making purchases. Identity theft still remains a major concern for older generations.

A major change from previous years, 55% of consumers plan to use their credit cards because they want to earn points and rewards. Credit card use has become less about convenience and more about savvy shoppers trying to maximize the rewards that their purchases offer.

Gifts for family will account for more than $500 of spending this holiday. The National Retail Federation estimates that the average individual will spend $1,047 this holiday season. Interest-free credit cards are the top choice for consumers planning on charging their purchases behind only rewards. The survey found that 71% of consumers base their credit cards on the rewards that are offered.

Rising mobile sales have 25% of shoppers planning to use a smartphone to make purchases this holiday season. In-store purchases made via apps are also rising in popularity, with 22% of consumers planning to pay for their purchases using an app in stores. App purchases are expected to rise as a whole this upcoming holiday season, with 39% of consumers planning to use apps more this coming holiday season than in past years.

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