60 percent of British Consumers set to do all their Christmas Shopping Online

Banking , Data , IT Innovations
25.11.2021 10:00 am

60 percent of responding UK consumers plan to do all their Christmas shopping online this year.

· 43 percent of millennials respond that they want to use Buy-Now Pay-Later (BNPL) to pay for their Christmas shopping.

· 1 in 4 of all UK Christmas purchases will be returned but returns are projected to drop to 15 percent when bought through BNPL.

The majority of British consumers plan to continue to do all their Christmas shopping online this year despite the opening of in person stores, a sign the pandemic is influencing how people plan to shop this festive season. This is according to the latest Generation Pay research by Worldpay from FIS^® (NYSE: FIS), which found Gen Z shoppers remain most attracted to the convenience of shopping online and via mobile (68 percent), while Boomers (48 percent) are more likely to return to shopping in-store.

With consumers now used to the convenience of online shopping, retailers are responding by offering a variety of payment methods at checkout. The survey reveals 70 percent of millennials cited this as a key preference when shopping in comparison to 46 percent of boomers. Nearly a third (28 percent) of those surveyed stated that they are planning to use BNPL to make their festive purchases this year, with this rising to 43 percent of millennials. Shopping via social media is also becoming more popular with over a quarter (26 percent) preferring to do their Christmas shop via social media.

Additionally, the research shows alternative payment methods could help to reduce returns. Almost 1 in 4 (24 percent) of every purchase during the festive season in the UK is returned – a number which rises to nearly 40 percent for millennials. But returns have dropped by almost 15 percent when bought through BNPL, with responding Gen Z and millennials saying they return 1 in every 5 purchases bought through BNPL.

Maria Prados, Head of Merchant Retail Growth at FIS said: “The pandemic is having a lasting impact on UK consumer shopping preferences. Shoppers have come to expect the convenience and flexibility of shopping online and are now, more than ever, choosing to do their seasonal shopping online. To capitalise on the festive period, retailers must respond to customers' changing demands by ensuring they are adopting the necessary technology which will give consumers more choice at the checkout and provide a frictionless payment experience.”