Amid growing economic concerns before the holidays, a new PayPal survey shows that U.S. consumers said they do not plan to cut back on holiday spending.
The 2026 Holiday Shopping Survey found that while 58 percent of shoppers polled said they feel more financial pressure this year, 64 percent of respondents still expect to spend “as much or more” than last year. Instead of cutting their budgets, shoppers said they are planning ahead, focusing on retailer rewards, as well as being more careful with their holiday spending.
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Frank Keller, president of checkout solutions at PayPal, said consumers are finding new ways to make their money go further. “What’s changing isn’t consumers’ desire to spend during the holidays, but how they’re going about it,” Keller said. “Shoppers are starting earlier and taking a more intentional approach, looking for deals, rewards and cash back to make every purchase count while still prioritizing the gifts and moments that matter most.”
Keller said as shoppers look for ways to stretch their budgets, PayPal can help them “turn that planning into action by bringing together offers, rewards and flexible payment options, including PayPal Pay Later, throughout the holiday season.”
These consumer intentions were revealed as the retail industry readies for a holiday shopping season marked by more intense holiday promotions as shoppers seek discounts as a way to offset inflationary prices. For the season, Adobe is called for U.S. online sales to reach $275.1 billion, which is up 6.7 percent year over year. Retail analysts said more than half of the gain is driven by inflation, and when the dust settles, unit sales will paint a clearer picture.
Meanwhile, the hunt for discounts and shopping earlier will be key for shoppers this year. “Competitive discounts will be up to 30 percent off listed price during Cyber Week,” Adobe said in its holiday report. “Shoppers will see deals all throughout the season, up to 14 percent in early November, up to 21 percent just before Thanksgiving and up to 10 to 15 percent throughout December.”
In the PayPal survey, researchers found that shoppers are not only stretching their dollars, but are setting limits to spending, as well as shopping earlier. The survey found that 58 percent of those polled said they plan to start shopping before Thanksgiving, and two out of five said they will begin by the end of October.
In addition, 67 percent of respondents said they are more likely to shop at stores that offer cash back or rewards. To keep giving gifts a priority, many also said they are making personal sacrifices. Thirty-nine percent of those polled said they are eating out less, while 35 percent said they are skipping gifts for themselves. Shoppers are also willing to put in extra effort, with 70 percent saying they would visit several stores and 63 percent ready to spend hours online searching for the best deals.
Meanwhile, flexible payment options like Buy Now, Pay Later (BNPL) are helping shoppers handle higher holiday costs, especially for things like clothes, toys and personal care items. More than half of consumers (55 percent) have used or thought about using BNPL, and 75 percent of those plan to use it for holiday shopping this year.
People said they like BNPL because it helps them control their budget, spread out payments, and gives them more flexibility. Also, 42 percent said they would be more likely to buy something if BNPL was available. This shows that options like PayPal’s Pay Later can help shoppers manage bigger purchases and buy gifts for more people.
So, it is no surprise that Adobe said BNPL is expected to drive $21.3 billion in revenue during the November-December period, which is up 6.6 percent year over year.
