PayPal Survey Reveals Holiday Spending Isn't Slowing Down, But Shoppers Are Changing How They Spend

As shoppers start earlier, seek more value and prioritize flexibility, PayPal offers more ways to help them make the most of their holiday budgets.

SAN JOSE, Calif., Sept. 30, 2026 /PRNewswire/ -- Holiday shoppers aren't necessarily spending less this year. They're changing how they spend. PayPal today released its 2026 Holiday Shopping Survey, revealing that nearly six in 10 Americans (58%) feel greater financial concern heading into the holidays, yet 64% still expect to spend the same or more than they did last holiday season. Faced with that tension, shoppers are planning earlier, setting budgets and looking for more ways to get value from every purchase.

More than half (58%) plan to shop before Thanksgiving, while 67% are more likely to shop with a retailer that offers rewards or cash back. As consumers rethink how they manage holiday spending, PayPal offers more choice and flexibility through Pay Later options, rewarding ways to pay, and offers from top brands in the new PayPal app.

"What's changing isn't consumers' desire to spend during the holidays, but how they're going about it," said Frank Keller, President of Checkout Solutions & PayPal. "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. As they look for ways to stretch their budgets, PayPal helps them turn that planning into action by bringing together offers, rewards and flexible payment options, including PayPal Pay Later, throughout the holiday season."

Consumers Are Taking Action to Make Holiday Budgets Go Further
With financial concerns top of mind, shoppers are taking practical steps to manage holiday spending and find value from every purchase, including:

• Prioritizing budgets: Setting and sticking to a budget (36%) is the top way consumers plan to manage their holiday spending, followed by comparing prices (32%) and waiting for sales or promotions (31%).
• Starting earlier: Two in five consumers plan to begin their holiday shopping by the end of October, and 29% plan to start shopping earlier than last year.
• Maximizing rewards: More than two-thirds (67%) are willing to use all their saved rewards to help purchase the perfect gift, and 55% have saved rewards they could use for holiday shopping.

In addition to discovering deals from favorite brands in the PayPal app, shoppers can use the PayPal Cashback Mastercard^®1 to earn 3% cash back on eligible purchases when they check out with PayPal.

Shoppers Are Making Tradeoffs to Preserve Gift-Giving
As holiday gift-giving remains a priority, consumers are making careful choices about where to cut back as they balance the season with financial pressures and rising costs.

• Sacrifices are personal first: Consumers would cut back on dining out (39%) and gifts for themselves (35%) to make room for holiday spending.
• Gift lists may be a little shorter: Twenty-nine percent would buy gifts for fewer people, while 34% would spend less on each individual gift.
• Trading time for the perfect gift: Seventy percent are willing to visit multiple stores, while 63% would spend hours searching online for the perfect gift.

As shoppers plan their holiday gift list, clothing (52%), toys and games (38%), and beauty, personal care and fragrance (32%) are the top categories where they plan to buy this holiday season. For larger purchases or gifts for multiple people, flexible payment options from PayPal provide shoppers with another way to manage when and how they pay while keeping meaningful gift-giving within reach.

BNPL Has Become a Go-To Way to Manage Holiday Purchases
The survey also points to strong interest in flexible payment options such as Buy Now, Pay Later (BNPL), as shoppers consider how to manage the timing and cost of planned holiday expenses. PayPal helps meet that need with Pay Later options including Pay in 4², which allows shoppers to split eligible purchases into four interest-free payments, and Pay Monthly³, which offers longer-term monthly payment plans. The survey found:

• BNPL is a core part of the holiday payment mix: More than half of consumers (55%) have used or considered BNPL. Among those consumers, three-quarters plan to use or are considering using BNPL for holiday shopping.
• Flexibility and control drive interest: Feeling more in control of their holiday budget and spreading the cost of purchases over time are each valued as BNPL benefits by 59% of consumers, while the flexibility to choose when and how to pay and the ability to take advantage of promotions are each valued by 60%.
• BNPL can influence purchase decisions: Forty-two percent say they would be more likely to make a purchase if BNPL were available, 56% value BNPL's ability to help them manage the cost of a higher-value gift, and 57% say it would help them manage the cost of gifts for several people.

About the 2026 Holiday Shopping Survey
PayPal commissioned Morning Consult to survey a nationally representative sample of 2,005 U.S. adults from Sept. 2-4, 2026. The results have a margin of error of plus or minus 2 percentage points.

About PayPal
Creating innovative experiences that make moving money, selling and shopping simple, personalized and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.com, https://about.pypl.com, and https://investor.pypl.com.

Media Contact:
PayPal Media Relations
[email protected]

SOURCE PayPal Holdings, Inc.