Survey: Credit cards, debit cards most popular for holiday shopping

Rising interest rates and inflation are expected to impact holiday shopping habits.

Credit cards are expected to be the most popular payment method for holiday shopping, according to a survey by consumer financial services company Bankrate. More than half (53%) of holiday shoppers say they expect to pay for at least some of their purchases with a credit card, including 19% who say they will take on credit card debt for their holiday purchases. 

Debit cards are a close second, with 52% of shoppers planning to use a debit card.  Only 10% of holiday shoppers plan to use a buy-now, pay-later service, and 5%  to plan to pay with checks.

The survey also found that  one of consumers’ hottest holiday activities in 2023 will be looking for ways to save money.  Eighty-seven percent  of holiday shoppers plan to use at least one money-saving strategy: 42% plan to buy fewer items; 41% plan to seek out more coupons, discounts or sales; and 30% plan to begin their holiday shopping earlier.

The survey revealed that holiday shoppers are still concerned about inflation, but not as much as last year. Thirty-three percent of holiday shoppers say inflation will change the way they shop, down from 40% in last year’ survey.  

At the same time, holiday shoppers are still concerned about costs. Two in five (40%) holiday shoppers say they expect to feel some financial burden in the upcoming holiday season. 

Most commonly, 25% say they’re stressed over costs, 23% believe the spending will strain their budgets and 13% anticipate being pressured to spend more than they’re comfortable.

Other survey findings are below.

Nearly four in five (79% ) Americans plan to shop for the holidays this year, purchasing gifts, decorations and other goods, according to the survey. Of those, 50% planned to begin shopping by Halloween. Only 37% are planning to start in November and 13% plan to hold off until December.

•Around two in five (39% holiday shoppers will do most of their shopping online, compared to 23% who will do most of their shopping in person.

•Shoppers of all generations prefer shopping online, but baby boomers (41%%) and Gen X (41%)  are more likely to prefer it than millennials (26%) and Gen Z (33%).