New Klarna holiday research reveals spending resilience, AI adoption and rising demand for interest-free payments as half of consumers say they are unlikely to settle their holiday credit card bills.
The average budget for gifts in the US is $740, significantly outpacing spending projections in other markets, like the UK ($560) or Germany ($371). However, a notable 61% of US consumers confirm that rising prices have altered their holiday shopping approach.
US millennial shoppers report the largest budget among all age groups, totalling US$1,169, while Gen Zers have the smallest budget at $462. Gen X shoppers and Baby Boomers have set aside budgets of $575 and $525, respectively.
65% of US consumers plan to stick to a holiday budget this year, with Gen Z and Millennials leading the charge (71% and 76%, respectively). Enthusiasm for budgeting weans with age, dipping to 51% among Baby Boomers.
Amid budget management concerns, the dangers of credit card debt loom large among US shoppers. Over half (53%) of US consumers express concern about incurring credit card debt during the holiday season.
Due to this, over a third (36%) of US shoppers are open to exploring AI to enhance their shopping experience this holiday season.
“With nearly 1 in 2 doubting their ability to pay off their holiday credit card bills entirely,” said Kristina Elkhazin, Head of North America, Klarna. “It’s no surprise that 81% of shoppers find interest-free payment options like Buy Now Pay Later appealing as they also lean into budget-smart choices, harnessing tech-savvy tools like AI.”
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