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InComm Payments 2025 Holiday Report: Insights into Consumer Spending

As the holiday season approaches, a recently released report by InComm Payments sheds light on how economic factors are influencing consumer behavior towards gift-giving in 2025. Based on a comprehensive survey of 2,517 US consumers, the findings reveal a marked shift in gift-giving strategies, heavily driven by concerns about budget constraints and the overall economic climate.

Key Insights from the Survey

The report emphasizes that cost is at the forefront of consumers' minds this season. Among all respondents, 43% prioritized price in their gift purchases, far exceeding those who considered product quality (18%) or brand reputation (15%). This is a reflection of the current economic conditions, where financial prudence is essential for many shoppers.

Interestingly, the data indicates that 53% of holiday shoppers intend to start their purchases early to guard against potential price hikes, while over two-thirds acknowledge that prevailing economic factors will significantly influence their spending choices. Additionally, 34% of respondents stated that sales and special deals would heavily dictate their purchasing decisions.

A trend towards convenience is evident, with 80% of consumers indicating that they prefer to frequent the same retailers multiple times throughout the shopping period. Omnichannel retailers are expected to have the upper hand as these shoppers look for streamlined experiences that save time and hassle.

Gift Cards: The Preferred Choice

Gift cards are taking center stage as the dominant gift option this holiday season, with a surprising 68% of consumers planning to purchase them. This marks a substantial preference over traditional gifts like clothing (61%), toys (44%), and electronics (36%). The reasons behind this trend include the flexibility and convenience that gift cards offer, minimizing the risks of unwanted returns and maximizing recipient satisfaction.

According to Tammy McGill, the director of market research at InComm Payments, the findings reflect consumers' deliberate efforts to create a joyful holiday season. She notes, "Consumers are balancing their time, money, and the significance of their gifts in a way that helps them and their loved ones feel good during this period."

A More Generous Approach

The report indicates that shoppers are not just focusing on their budgets but are also mindful of their gift recipients' financial situations. Almost one-third of consumers expressed intentions to buy higher denomination gift cards than in previous years, emphasizing their commitment to helping friends and family navigate through inflationary pressures.

Furthermore, the survey found that 39% of respondents plan to purchase more physical gift cards, while 23% will opt for digital ones, suggesting a tailored approach to gifting that matches the unique preferences of each relationship.

Matching Gifts to Recipients

In terms of the types of gift cards being purchased, the data shows that 61% of gift card buyers prefer open-loop cards for their versatility. However, single brand cards (45%) and multi-brand cards (29%) are also appreciated across different contexts and occasions, highlighting the thoughtfulness of gift card givers in their selections.

The report concludes with McGill's observation: "While the holidays can evoke varied meanings for people, there is a commonality in the aim to make the season manageable and meaningful. Whether it's planning purchases to maintain budgets, reducing stress through strategic shopping, or selecting the appropriate gift card, shoppers are approaching the holidays with practicality."

For more detailed insights, you can access the full report at InComm Payments Holiday Report.

About InComm Payments

InComm Payments stands as a leader in global payment solutions, employing innovative technology to provide a formidable range of payment platforms that cater to various sectors, including retail and healthcare. With a legacy spanning three decades and operations extending to over 40 countries, InComm Payments is committed to enhancing commerce experiences worldwide. To explore more about their offerings, visit InCommPayments.com.