By Gary Symons
TLL Editor-in-Chief
A new survey shows most Americans plan maintain their spending levels on holiday gift giving this year, despite concerns about inflation and the state of the economy.
The survey was conducted on behalf of the payment company PayPal by the polling firm Morning Consult.
PayPal says the results show that holiday shoppers aren’t necessarily spending less this year, but are changing how they spend. PayPal’s 2026 Holiday Shopping Survey revealed that nearly six in 10 Americans (58%) feel greater financial concern heading into the holidays, and yet 64% still expect to spend the same or more than they did last holiday season.
What shoppers are looking for is value in their spending, so they are planning earlier, setting budgets, and changing their priorities.
For example, 58% of respondents said they plan to shop before Thanksgiving, while 67% say they are more likely to shop with a retailer that offers rewards or cash back.
“What’s changing isn’t consumers’ desire to spend during the holidays, but how they’re going about it,” said Frank Keller, President of Checkout Solutions & PayPal. “Shoppers are starting earlier and taking a more intentional approach, looking for deals, rewards and cash back to make every purchase count while still prioritizing the gifts and moments that matter most.”
The PayPal survey’s findings echo earlier research from Circana, which noted shoppers are buying gifts much earlier than in the past.
The trend is so strong that Circana has urged advertisers to prepare by starting their media buys earlier.
Based on data from 2025, Circana found that nearly one-half of consumers (48%) browsed before Thanksgiving in 2025, and 44% planned to shop earlier overall.
PayPal’s new survey seems to indicate that trend is getting stronger in 2026.
Consumers Are Taking Action to Make Holiday Budgets Go Further
With financial concerns top of mind, PayPal says shoppers are taking practical steps to manage holiday spending and find value from every purchase, including:
- Prioritizing budgets: Setting and sticking to a budget (36%) is the top way consumers plan to manage their holiday spending, followed by comparing prices (32%) and waiting for sales or promotions (31%).
- Starting earlier: Two in five consumers plan to begin their holiday shopping by the end of October, and 29% plan to start shopping earlier than last year.
- Maximizing rewards: More than two-thirds (67%) are willing to use all their saved rewards to help purchase the perfect gift, and 55% have saved rewards they could use for holiday shopping.
- Sacrifices are personal first: Consumers would cut back on dining out (39%) and gifts for themselves (35%) to make room for holiday spending.
- Gift lists may be a little shorter: Twenty-nine percent would buy gifts for fewer people, while 34% would spend less on each individual gift.
- Trading time for the perfect gift: Seventy percent are willing to visit multiple stores, while 63% would spend hours searching online for the perfect gift.
PayPal uses survey data to inform new services and programs, and some of the data from recent years has resulted in new services that are relevant to holiday shoppers and retailers.
One example is a growing trend that sees consumers increasingly using ‘Buy Now Pay Later’ (BNPL) services to buy that ideal gift for a loved one.
More than half of consumers (55%) said they have used or considered using BNPL services. Among those consumers, three-quarters plan to use, or are considering using, BNPL for holiday shopping.
PayPal has leaned into that trend by offering its Pay Later service, and also offering special deals from top brands in its PayPal app.
“As they look for ways to stretch their budgets, PayPal helps them turn that planning into action by bringing together offers, rewards and flexible payment options, including PayPal Pay Later, throughout the holiday season,” the company said.
PayPal also looked into what types of gifts are being considered by shoppers this year, and it appears that fashion, toys and games, and beauty products are topping Santa’s list.
The data from Morning Consult says clothing is top of mind for 52% of consumers, toys and games follow at 38%, and beauty, personal care and fragrance rings in at 32%
The Morning Consult poll surveyed a nationally representative sample of 2,005 U.S. adults from Sept. 2-4, 2026. The results have a margin of error of plus or minus 2 percentage points.
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