WASHINGTON – October 30, 2026 -- Fifty-seven percent of U.S. consumers report a negative consequence for merchants that do not accept their preferred payment method, according to the seventh annual Consumer Holiday Spending Study from the Electronic Transactions Association (ETA) and TSG (The Strawhecker Group). The study of 1,099 U.S. consumers, conducted September 8-13, 2026, also found that 44% feel more financially stressed than last year, up from 27% in 2025.
Financial stress and holiday debt rise sharply year over year
Thirty percent of respondents report more debt than two years ago, up from 17%. Thirty-three percent say they usually take on holiday debt or likely will this year, up from 19%.
Concern rose across all eight shopping issues measured, led by inflation at 82%. Concern about gift affordability reached 64% and concern about managing a budget reached 57%, each up 17 percentage points.
Consumers set budgets and split on spending plans
Seventy-two percent plan to set a holiday budget, and only 23% will shop without one, down from 40% in 2025. Seventy-three percent plan to spend less than $1,000.
Spending intentions are more polarized than last year. Twenty-two percent expect to spend more, up from 18%, while 32% expect to spend less.
Unsupported payment methods push 24% of shoppers to competitors
When a merchant does not accept a shopper's preferred method, 24% would look for the same product at another merchant, and 7% would abandon or postpone the purchase. Another 26% would complete the transaction with a different method but would be less likely to return.
"Consumers are being careful with every dollar this year," said Jodie Kelley, CEO of ETA, adding that merchants offering the payment options customers rely on, with clear terms and strong security, are best placed to win the sale and keep the customer.
Tap-to-pay reaches 81% regular use as wallets and P2P retain users
Eighty-one percent of consumers use tap-to-pay regularly, and 89% of those who try it continue using it. Repeat usage stands at 61% for digital wallets and 60% for peer-to-peer (P2P) apps.
Mike Strawhecker, President of TSG, said rising stress and debt make payment flexibility more appealing and raise the importance of transparency and responsible financing. In his words, consumers are telling merchants that value and checkout flexibility matter more than speed.
Free shipping and payment choice top online shoppers' priorities
Free shipping (74%) and the ability to pay how they want (72%) are the top priorities for online purchases. Seventy-one percent plan to buy at least one gift card, led by retailer-specific cards.
Opinion on Buy Now, Pay Later (BNPL) is split, with 37% viewing it favorably and 36% unfavorably. Twenty percent expect to use BNPL more this season than last.
Forty-six percent plan to use AI tools to compare prices, but only 23% would let AI complete a purchase on their behalf.