A study released today by the Electronic Transactions Association ( Electronic Transactions Association, ETA ) and TSG ( The Strawhecker Group ) shows that consumers entering the holiday season of 2026 are under greater financial pressure, and payment flexibility has become one of the most obvious ways for businesses to win and retain customers.

This seventh annual "Consumer Holiday Spending Study" found that 44% of consumers indicated they are under greater financial pressure than last year, which is higher than the 27% in 2025. 30% said they have more debt than two years ago, up from 17%; 33% said they usually take on holiday debt or are likely to do so this year, which is higher than 19%. Among the eight shopping issues measured by the study, concerns regarding all items have increased, with inflation being the most concerning, at 82%. Concerns about the affordability of gifts are at 64%, and concerns about budget management are at 57%, both of which have risen by 17 percentage points.

Consumers are responding to this situation by planning their spending more carefully. 72% of people plan to set a holiday budget this year, while only 23% will shop without a budget, which is lower than the 40% in 2025. 73% of people plan to spend less than $1,000 on holiday shopping. Compared to last year, consumer plans are more polarized: 22% expect to spend more money, up from 18%; 32% expect to spend less. This indicates that competition will be fiercer this year, and although consumers will still spend, they will be more selective about where they put their money.

ETA CEO Jodie Kelley stated: "This year, consumers are very cautious with every dollar they spend and pay close attention to how they make their payments. Businesses that can offer reliable payment options with clear terms and strong security are most likely to win transactions and retain customers. The payment industry is helping various types of enterprises achieve this."

A survey conducted among 1,099 American consumers from September 8 to 13, 2026, revealed that payment acceptance directly affects where consumers shop. When merchants do not accept the payment methods preferred by consumers, 24% of them will look for the same products at another establishment, 7% will give up or postpone their purchase, and another 26% will use other methods to complete the transaction, but their likelihood of returning to buy from that merchant is lower. In total, 57% of these consumers will have a negative impact on the merchants.

Newer payment methods are gradually becoming the norm. 81% of consumers frequently use the "Pat-Pat Pay" ( tap-to-pay ) method, and 89% of those who have tried it will continue to use it. The reusability rates for digital wallets and peer-to-peer ( P2P ) applications are also high, at 61% and 60% respectively.

TSG President Mike Strawhecker stated: "The continuously rising pressure and debt make payment flexibility more attractive, and also make transparency and responsible financing more important. Consumers are telling businesses that value and checkout flexibility are more important than speed. Businesses that can achieve both of these will be the most likely to gain an advantage this season."

The study also found:

• Online shopping: Free shipping (74%) and the ability to pay in one's preferred way (72%) are the two most important factors considered when shopping online.
• Gift cards: 71% of people plan to purchase at least one gift card, with retailer-exclusive gift cards being the most popular choice.
• Pay after purchase ( BNPL ): Opinions are divided, with 37% holding a positive view of BNPL and 36% holding a negative view. 20% of people expect to use BNPL more this season than last year.
• AI Auxiliary shopping: 46% of people plan to use AI tools for price comparison, but only 23% are willing to let AI complete the purchase on their behalf.

The full research can be viewed here.

About Electronic Transactions Association ( ETA ): ETA is a globally leading advocacy and trade association in the payment industry. Its members include world-leading payment and fintech companies – including payment processors, networks, banks, fintech firms, software providers, independent software vendors, and payment technology innovators – which collectively process approximately $56.75 trillion in purchases and peer-to-peer payments worldwide each year. For more information, please visit www.electran.org.

Media contact: Scott Talbott, [ email protected ]

About TSG: TSG ( The Strawhecker Group ) is a globally renowned analytics and consulting firm that supports the entire payment ecosystem, serving over 1,000 clients ranging from Fortune 500 companies to more than a dozen of the world's most valuable brands. TSG is highly trusted by industry leaders, and its strategic services, market intelligence, and analysis are designed to provide customers with actionable and easily accessible information. Please visit www.tsgpayments.com.

Media contact: Andy Nuss, [ email protected ]

Source: Electronic Transactions Association ( ETA )