Marketing Insight: Holiday Payment Trends 🎄

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Marketing Insight: Payment Trends

Unwrapping 2023’s Payment Trends for the Holidays

The holidays are here, and spending continues its upward trajectory this season! The average consumer is expected to spend $1,530 between gifts, travel, and entertainment during the 2023 holiday season. With holiday sales starting early, many have already begun or finished shopping, making this a great time to look at this year’s payment trends. Join us as we dive into the new digitized world of making payments and what it means as we shift into the new year!

Payment Method Decision-Making Factors

During this time of year, ease of use and getting the best deal are the top priorities when choosing a payment method. Those with lower incomes prioritize easy-to-use methods, while mid and high-income earners focus on the best deal. Offering seamless payment technologies and holiday incentives is essential to draw in these customers, with clear messaging all season long being the key to success.

Apple & Samsung Pay Usage Grows

PayPal remains the top digital wallet provider, but Apple Pay is gaining popularity among users. With 23% of shoppers confident about leaving their physical wallet at home, banks and credit unions should focus on the seamless integration of their credit and debit card products with digital wallets. Additionally, incentivizing customers to use their cards on mobile services is a great way to increase transactions and gain digital wallet share.

Buy Now, Pay Later Opportunities

Buy Now, Pay Later (BNPL) services are becoming popular for holiday purchases, with 88.2 million users during the 2023 season. This service allows consumers to pay for purchases in their cart with a short-term payment plan divided into equal payments from a credit or debit card. With this fading stigma of personal lending, traditional financial institutions should maximize the convenience and transparency of the Personal Loan process to remain competitive.

Peer to Peer Payments on the Rise

P2P apps like Venmo and PayPal have become increasingly popular, with 74% of consumers using them in 2023. Among these, Zelle has been the fastest-growing P2P in 2023 and is securely integrated into financial institutions' systems. Offering P2P payment services is crucial for banks and credit unions to remain competitive, and services linked directly with financial institutions are advantageous over fintech options like Venmo, which lacks insurance on funds. Even if not offering P2P services, providing educational resources on safe usage is essential in protecting customers and members.

The Restaurant Payment Evolution

During the holiday season, 60% of people plan to dine out, leading restaurants to adopt new payment methods like handheld POS terminals. These terminals reduce table turnover and wait times, making them popular among small businesses. Banks and credit unions offering business banking services should stay updated on these changes, provide educational resources for secure usage and fraud prevention, and consider offering these as part of their merchant services.

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