PayPal’s 2025 Holiday Shopping Survey reveals critical insights for U.S. merchants to optimize sales and loyalty during the holiday season. As shoppers increasingly leverage AI tools—40% of Americans used AI for purchases last year—merchants must ensure product visibility across AI platforms to capture demand. Flexible payment methods like Buy Now, Pay Later (BNPL) are now mainstream, with half of consumers planning to use them, enhancing affordability and driving conversion—an impressive 91% higher average order value for enterprises. Omnichannel shopping is also on the rise, with 64% of shoppers intending to shop in-store, and 41% both online and offline. Consumers favor merchants offering cash back and rewards, with 74% likely to shop with those that do. To succeed, merchants need to create seamless, rewarding experiences across all channels and consider PayPal’s expansion of Pay Monthly to boost customer engagement and sales throughout the festive season.
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