Interac, one of Canada’s most trusted payment brands, predicts a slightly less frantic holiday shopping season this year. While Friday, December 20 is predicted to be the busiest shopping day, with 25.9 million purchase transactions, this represents a dip in spending volume compared to last year’s Interac forecast of 27.8 million transactions. Last-minute deals may be the strategy of choice for many Canadians looking to stretch their holiday budgets amid rising costs.
This holiday season, Canadians appear to be prioritizing practical purchases. A quarter of transactions (25.4 per cent) are expected to be at fast food restaurants and eateries, fueling holiday errands. Grocery stores and supermarkets come in second at 15 per cent, as Canadians prepare festive feasts. Transportation costs take another 10.9 per cent of transactions at gas stations. All that essential spending leaves just 4.4 per cent of those transactions being put toward gifts and holiday deals at clothing and department stores.
This trend aligns with recent Interac data showing Gen Z, a key consumer demographic, prioritizing mindful spending (62 per cent) and the option to pay with debit for both in-store and online purchases (57 per cent). This emphasizes their desire to use their own funds and avoid accumulating debt.
Interac has provided some tips to help consumers navigate the holiday season and stay in control of their spending including creating a budget and stick to your list to avoid impulse purchases, especially for holiday meals where overspending on festive treats is common.
Interac e-Transfer is also an excellent tool to easily share expenses with friends and family.