New Research Reveals How Technology Will Reshape the Way We Spend,
Send and Give Money This Season
SAN JOSE, Calif.–(BUSINESS WIRE)–PayPal,
the global technology platform and digital payments leader, today
released its predictions for the upcoming holiday shopping season,
highlighting how technology is radically transforming the shopping
experience and empowering people to spend, send and donate money on
their own terms.
“There have never been more options for Americans to shop in a way that
works for them, and those options have fundamentally changed holiday
shopping behavior,” said Anuj Nayar, Head of Global Initiatives, PayPal.
“Much like PayPal, holiday shopping has grown beyond simply one button
at one moment, now encompassing the freedom of mobile devices, the
social enjoyment of peer-to-peer payments, and the security and
simplicity to make a purchase, with confidence, at a moment’s notice.”
From mobile devices driving shopping anytime and anywhere, to
peer-to-peer payments bringing people together, proprietary PayPal data
and a new survey* show how Americans are finding new ways to take stress
out of the holiday shopping experience.
Shoppers will turn to mobile to stress less, buy big and make the
most of Cyber Monday.
The majority (59%) of Americans find holiday shopping to be stressful;
so much so they’d rather do a multitude of unenviable activities than
fight the holiday shopping crowds. More than a quarter of Americans
would rather shovel snow from their driveway; 1-in-5 Young Boomers and
Gen-Xers would rather go to the dentist; and, about 1-in-5 Millennials
(19%) would rather text with their boss over the weekend.
Fortunately, it doesn’t have to come down to that, as more and more
shoppers will take to mobile devices through the season to simplify
their shopping. Thanks to innovations like PayPal
One Touch™, where shoppers can remain logged in to check out faster
across millions of merchants, PayPal saw a 56% year-over-year increase
in mobile payment transactions this past quarter1 and we
expect to see more shoppers turn to their mobile devices during
holidays. Smartphone shopping isn’t just for stocking stuffers, however
– PayPal predicts the largest holiday transaction on mobile will cost
more than $64,000.2
Also, this Cyber Monday will mark the summit of the shopping season once
again, and PayPal expects more than $25,000 in Total Payment Volume
(TPV) per second at peak of Cyber Monday3 – with a formidable
40% of Millennials planning to shop on a mobile device that day.
Anytime, anywhere shopping will reach new heights … and locations.
Holiday shoppers are increasingly interested in choice and flexibility
when it comes to how they pay for purchases, whether they’re putting all
of their holiday gifts on credit or spreading their gift list across a
variety of funding sources. Even more than how they pay, shoppers are
also particular about how and when they shop this season.
From the TV to the toilet, Americans plan on shopping whenever and
wherever they want this holiday season. Half of Americans, and even more
Millennials (59%), plan do to their Holiday shopping while
binge-watching TV. All that TV binging could signal what’s on their wish
list as PayPal predicts consumers will spend more than $141 million on
digital subscriptions this holiday season with PayPal. 4
Shopping has certainly spread to other areas of the home, with 22%
saying they will shop on the toilet—an increase of 7
percentage points over 2014—and more than a third (34%) will shop in
bed for their partner or spouse while they are sleeping next to them.
Wherever consumers are or what else they’re doing at the time, PayPal
connects them with a vast network of 15 million merchants – from local
artisans to big retailers – all over the world so they can find
one-of-a-kind gifts without even having to leave the couch.
Shopping and socializing will collide this holiday season, as
Americans eat, drink and shop merry.
Combining shopping with dinner or drinks is no longer considered the
faux pas it once was, especially if there is a bargain to be had. 29% of
Americans – and one-third of Millennials – will have an alcoholic drink
while shopping for holiday gifts. One in five Millennials will shop at
the dinner table with family and friends. And, 35% of Americans say they
would even shop online at the Thanksgiving table to make sure they get a
For those shoppers who buy something that doesn’t fit, isn’t right, or
just regret the choice they made after a few glasses of egg nog,
shoppers can get their eligible return
shipping costs reimbursed when shopping with PayPal. Limitations
Gifting will become a group sport—and settling up will be
simple and social with P2P payments.
Peer-to-peer (P2P) payments like PayPal and Venmo are helping eliminate
holiday hassles, particularly among Millennials. Half of Millennials
will pool funds for gifts this holiday season, with 35% planning to
collect funds from friends and family via P2P platforms. With group
gifting on the rise, PayPal predicts more than 17 million P2P
transactions in the month of December5 and that the gift box
emoji will be used more than 350,000 times on Venmo6 in the
months of November and December as people gift money and get paid back.
2016 will be the biggest year yet for charitable giving, and
“on-the-go” giving will skyrocket.
The majority of Americans (62%) plan to make a charitable donation this
holiday season and PayPal continues to see steady growth in mobile
donations year over year as donors give at the point of discovery.
Last year, PayPal users helped set the GUINNESS WORLD RECORDS® title
for, “Most money raised online for charity in 24-hours” raising $45.8
million for charities on #GivingTuesday, more than doubling the previous
record. Following the launch of in-app
donations earlier this year, PayPal predicts a 45% increase in
donations made via mobile on #GivingTuesday alone this year.7
Young Boomers will be the most generous consumers this holiday season,
with plans to make the largest donations on average ($416), but the
generosity of Millennials will edge out Gen X, giving $245 and $230 on
Be it a surprise for a loved one or a donation to a worthy cause, PayPal
makes it easy to give some goodwill whether it’s on a charity site or by
making a donation in the PayPal app.
For more information, go to: paypal.com/holiday.
About the Survey*
The survey was commissioned by PayPal and conducted online by
independent research company Koski Research in October 2016. The survey
polled 1,000 Americans planning to celebrate the holidays this season.
At PayPal (Nasdaq:PYPL), we put people at the center of everything we
do. Founded in 1998, we continue to be at the forefront of the digital
payments revolution. PayPal gives people better ways to manage and move
their money, offering them choice and flexibility in how they are able
to send money, pay or get paid. We operate an open, secure and
technology agnostic payments platform that businesses use to securely
transact with their customers online, in stores and increasingly on
mobile devices. In 2015, 28% of the 4.9 billion payments we processed
were made on a mobile device. With our 192 million active customer
accounts, PayPal is a truly global payments platform that is available
to people in more than 200 markets, allowing customers to get paid in
more than 100 currencies, withdraw funds to their bank accounts in 56
currencies and hold balances in their PayPal accounts in 25 currencies.
For more information on PayPal, visit https://www.paypal.com/about.
For PYPL financial information, visit https://investor.paypal-corp.com.
About Koski Research
Koski Research specializes in custom research solutions that answer the
most complex business questions of Fortune 1000 companies. Answers to
these questions result in national media coverage, drive business growth
and prepare clients for the future. As the creator of the Engagement IQ,
a proprietary measurement system that assesses the public’s sentiment of
a company based on key social behaviors, Koski Research excels in
leveraging research to drive customer engagement.
|1||As reported in Q3 PayPal Earnings, October 20, 2016.|
Based on the global mobile transactions we have seen on our platform
in 2013, 2014 and 2015.
|3||Based on the 2015 average for the peak hour of Cyber Monday.|
Based on the global transactions we have seen on our platform in
2013, 2014 and 2015.
Based on the average number of global transactions (Venmo + PayPal)
we have seen on our platform in December for 2013, 2014 and 2015.
Based on percent of gift box emoji payments and Venmo year over year
|7||Based on the percent increase for 2013, 2014 and 2015.|