Consumers Worried About Balancing Christmas and Essential Spending

As Christmas approaches, nearly half of consumers express concern about balancing festive spending with the cost of necessary purchases. This data comes from new research carried out by the embedded finance platform Marqeta.

Buy Now, Pay Later to the Rescue

Approximately 12 million people in the UK anticipate using buy now, pay later (BNPL) services to financially navigate through the Christmas season. Marqeta’s research indicates that 43% of consumers are apprehensive about managing Christmas-related expenses alongside essential purchases.

Rising Living Costs Influence Spending Habits

The ongoing cost of living crisis, intensified by high inflation rates, has led to two-thirds of consumers altering their daily financial routines. A considerable number have turned to short-term credit as a strategy to alleviate their financial stress.

Todd Pollak, the chief revenue officer at Marqeta, notes a fundamental shift in how individuals handle their finances. He suggests that short-term credit innovation is becoming an increasingly viable lifeline for consumers, particularly during the holiday season.

Credit as a Tool for Seasonal Spending

As consumer spending is projected to increase over the coming months, 39% of those surveyed disclosed they would be leveraging credit, including BNPL, to help manage their finances during the festive season. Accessible credit options offer consumers more control over their yearly budget and the flexibility to buy Christmas items now and pay later when there’s less financial pressure.