Financial Limitations Are The Top Cause Of Holiday Shopping Stress Say Consumers
New research from Klarna shows shoppers are looking for flexible payment options, such as installments, to ease financial pressures during the holidays
NEW YORK, Dec. 10, 2018 /PRNewswire/ -- Leading global payments provider, Klarna, released new research, in conjunction with Finn Partners, into consumers' holiday shopping preferences and restrictions. The research surveyed more than 1,100 consumers, finding that Americans who shop for gifts during the holidays prioritize options and flexibility.
"Although festive, the holiday season can be a stressful time—especially when it comes to budget," said Michael Rouse, Chief Commercial Officer at Klarna. "Our goal at Klarna is to provide merchants with the ability to offer flexible payment options, like installments, to their shoppers, therefore alleviating financial pressure."
This study uncovered that the top causes of stress during holiday shopping are financial limitations and crowded stores, followed by long lines, out-of-stock items and online delivery delays. This is especially true for women, as well as those with children.
40% of Americans say they do not make holiday purchases on their credit card, instead choosing to use cash, debit cards, or advanced payment options, like Klarna. Of the 21% that use credit cards, the average expected time to pay this amount back is 11 months. About a third of holiday credit card users say it will take a year or more to pay off in full.
The findings suggest that for one-third of Americans who shop during the holidays, more payment options would alleviate monetary pressure and mean less holiday shopping stress—especially among millennials and the younger demographic. About three-quarters (74%) of U.S. adults that shop during the holidays have occasionally had to opt out of a holiday purchase or opt for a cheaper alternative due to their budget.
According to the research, 75% of Americans who shop during the holidays are interested in paying off their holiday purchases in installments, with more than 4 out of ten (43%) saying they are very interested.
"This research shows us that consumers are aware of the financial restraints during the holiday season and are interested in diversified payment alternatives, increased control and convenience when shopping," said Rouse. "It is crucial for merchants to better understand consumer preferences and expectations, especially during a high-volume shopping period, like the holidays."
For more information, visit www.klarna.com.
About Klarna
It's all about smoooth (yes, with 3 ooo's). Klarna is Europe's leading payments provider and a newly-licensed bank, which wants to revolutionize the payment experience for shoppers and merchants alike. Founded in Stockholm, Sweden, in 2005, the fintech unicorn gives online consumers the option to pay now, pay later or over time - offering a trusted, frictionless and smoooth checkout experience. Klarna now works with 90,000 merchants to offer payment solutions to users across Europe and North America. Klarna has 2,000 employees and is active in 14 countries.www.klarna.com.
About the Survey
A survey of 1,172 American adults 18+ was designed and conducted online by Finn Partners between November 26-27, 2018. The sample was stratified and the data was weighted slightly by region, age, gender, income, and race in order to ensure a proportional, representative sample. This survey has a margin of error of +/-3 percentage points at the 95% confidence level. The margin of error is higher for subgroups within each sample.
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SOURCE Klarna
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