San Jose, Calif. (Nov. 10, 2020) – Forty-eight percent of consumers expect to spend less money during the upcoming holiday shopping season compared with last year, according to new survey research by Ondot Systems, the digital card services platform for credit and debit issuers. The survey also found one quarter of consumers have fallen slightly or significantly behind on their credit card payments since the pandemic began in March.
The goal of the survey was to measure the impact of the economic downturn, driven by the coronavirus pandemic, on holiday spending. Consumer spending continues to shift toward online and mobile channels, according to the survey, creating opportunities for card issuers and merchants to capture a greater share of that spending.
The top three reasons consumers gave for spending less this holiday season were the uncertain economy, the desire to build their savings and concerns about their employment and financial situation.
The survey also found a shift from in-store to online spend, with 58% planning to spend less in person, while 39% said they would increase online spending and more than 27% said they would increase spending through their phone or a mobile app. Convenience was a critical driver in online spending, suggesting that online retailers should focus on fast checkout to capture consumer spending this year. Card issuers should focus on making cards easy to add to mobile wallets, such as Apple Pay, and help cardholders store their cards securely on merchant websites.
“Changes in spending this year present challenges, but also opportunities,” said Vaduvur Bharghavan, CEO of Ondot Systems. “Retailers and financial institutions that are prepared to meet these new needs will be best poised to capture holiday spending, both online and in-store.”
More information about the survey results can be found at https://ondotsystems.com/hss20 .
The survey of 1,078 U.S. adults representing a variety of demographic factors including age, gender, household income and region of residence was conducted by SurveyMonkey on behalf of Ondot in October, 2020.
Founded in 2011, Ondot provides more than 4,500 banks and credit unions with a digital card management platform to drive cardholder engagement. From community issuers to top global banks, Ondot enables financial institutions to offer in-the-moment convenience, control, and transparency for credit and debit cards, leading to higher usage, lower cost, and reduced fraud. To learn more about Ondot Systems, visit www.ondotsystems.com.