Flexible payments emerge as key driver in UK holiday shopping

By Vriti Gothi

The UK’s holiday shopping season is unfolding with a striking contrast in consumer behaviour, as new research from Ingenico reveals a blend of caution and confidence shaping spending patterns. Based on a survey of 2,000 consumers across the country, the findings highlight a growing divergence between demographic groups, with age, gender, and payment preferences playing an increasingly influential role in how Britons approach holiday gifting this year.

Many consumers are entering the season with a sense of financial pressure. Nearly half of all respondents say the holidays feel less affordable compared to previous years, while a similar proportion express concern about their ability to afford gifts at all. Women, in particular, are approaching the season more conservatively, with over a quarter intending to cut back on spending, a figure notably higher than that of men. Older shoppers are showing similar restraint, especially those aged 55 and above, where only a small minority expect to increase their spending this year.

This caution is reshaping expectations around how consumers prefer to pay, with flexible payment options becoming a critical component of the holiday shopping experience. More than half of respondents say that having access to Buy Now, Pay Later or other split-payment solutions is important when shopping in physical stores. Yet despite this demand, the majority report never having had the opportunity to use such payment methods in-store, signalling a considerable gap between consumer expectations and current retail offerings.

While many households are tightening their budgets, not all demographic groups share the same level of caution. Adults aged 35 to 44—who are typically in their prime earning years—are showing the strongest confidence heading into the festive season. This segment is more likely than the overall population to increase their holiday spending, with many planning to match or exceed last year’s gift budgets. For retailers, this group represents a valuable consumer base, balancing spending power with a willingness to prioritise holiday purchases.

Ingenico notes that the coexistence of cautious and confident mindsets is redefining what retailers must offer to remain competitive. The company emphasises that flexible and frictionless payment experiences are becoming a decisive factor in capturing both segments. Solutions such as Buy Now, Pay Later, split payments, and seamless mobile wallet or contactless checkouts can help budget-conscious shoppers manage expenses more comfortably, while giving more confident consumers the convenience and speed they expect. According to Ingenico, retailers that embrace these evolving payment preferences will be best positioned to drive conversion, loyalty, and growth in a market still shaped by economic uncertainty.

The findings make it clear that understanding how age and gender intersect with payment behaviour is essential for retailers hoping to optimise their holiday strategy. By tailoring promotions, messaging, and checkout experiences to the varied mindsets of their customers, businesses can better navigate a season defined by both restraint and resilience. As holiday spending becomes increasingly influenced by the availability of flexible payment options, FinTech innovation is emerging as a key enabler of retail success in 2025.