Thirst for Rewards Sparks Uptick in Credit Card
Use this Holiday Season
Twenty-five percent of consumers plan to spend more this holiday
season than they did last year, according to Discover’s annual
holiday shopping survey. Younger generations are leading the
charge, as 35 percent of Millennials and 33 percent of Generation Z
report an expected bump in spending, compared to 26 percent of
Generation X and 16 percent of Baby Boomers.
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25% of consumers plan to spend more this
holiday season, according to Discover's annual holiday shopping
survey. (Photo: Business Wire)
The reasons consumers expect to spend more vary between younger
and older generations. Gen Z (51 percent) and Millennials (40
percent) say higher wages will fuel increased spending, whereas Gen
X (38 percent) and Baby Boomers (36 percent) will boost spending to
accommodate more people on their shopping list.
The number of those who expect to use credit cards to pay for
most of their holiday gifts jumped to 38 percent this year, up from
32 percent in 2017. Less than a quarter, 24 percent, plan to use
debit cards to pay for most of their gifts, and 20 percent will
primarily use cash. Among those who favor credit cards when making
holiday purchases, 54 percent say earning rewards is the driving
factor, up from 42 percent last year.
“The holidays are the busiest shopping season of the year and
our goal is to make it as simple and seamless as possible for our
cardmembers to earn rewards every time they use their Discover
card,” said Laks Vasudevan, Discover’s vice president of card
programs, strategy and marketing. “Rewards are a major driver for
our cardmembers, which is why we help maximize their earning
potential during the holidays by aligning our 5% cashback program
with popular seasonal categories like Amazon.com and wholesale
clubs.”
Now through December, Discover cardmembers can earn 5% Cashback
Bonus at Amazon.com and wholesale clubs on up to $1,500 in
purchases after activation.
Gen Z Leads the Way for Mobile Shopping; Millennials Flip the
Script on Wearables, IoT Devices
This marks the first year Discover included Gen Z as its own
distinct generation in its annual survey. In doing so, the survey
revealed the youngest generation as being tech savvy holiday
shoppers. Gen Z led the way with 80 percent planning to use their
mobile device to shop for holiday gifts, compared to 73 percent of
Millennials, 62 percent of Gen X and 41 percent of Baby Boomers.
Among those who plan to shop on their mobile devices, 67 percent of
Gen Z say they will do so for all or most of their holiday
shopping, compared to 66 percent of Millennials, 56 percent of Gen
X and 39 percent of Baby Boomers.
Millennials slightly outpace Gen Z when it comes to embracing
emerging technologies like wearables and voice-activated devices
when holiday shopping. Thirty-six percent of Millennials and 35
percent of Gen Z plan to use a wearable or Internet of Things (IoT)
device—for example, a payment-enabled watch or appliance—to make
holiday purchases, compared to 24 percent of Gen X and 8 percent of
Baby Boomers. Likewise, 29 percent of Millennials and 27 percent of
Gen Z plan to use a voice-activated smart speaker to aid in their
holiday shopping, compared to 23 percent of Gen X and 8 percent of
Baby Boomers.
Concern over Identity Theft Is Down, but Most Consumers
Remain Vigilant
More than half of respondents, 55 percent, say they are very or
moderately concerned about identity theft or fraud during the
holidays, down from 62 percent last year. Concern cuts across all
generations, but levels are higher among Baby Boomers and Gen X,
with 60 and 56 percent, respectively, saying they are very or
moderately concerned, followed by 49 percent of Gen Z and 48
percent of Millennials.
The vast majority of survey respondents, 90 percent, say they
take some measure to protect themselves from identity theft or
fraud, including 62 percent who say they monitor their financial
statements, 41 percent who monitor their credit reports and 39
percent who use a credit card with built-in security features.
“As consumers embrace new digital technologies while holiday
shopping, such as smart speakers and wearable devices, Discover
aims to provide peace of mind to its cardmembers by offering a
number of free security features on all of our cards, like
monitoring every Discover card purchase every day, and offering
Social Security number and new account alerts1 that cardmembers can
sign up for,” adds Vasudevan.
For more information about Discover card security features, go
to discover.com/security.
For more information about Discover card rewards, go to
discover.com/rewards.
About Discover’s 2018 Holiday Shopping Survey
The national survey of 2,006 U.S. consumers ages 18 and up was
commissioned by Discover and conducted by Research Now, an
independent survey research firm, between October 19 and October
23, 2018. The maximum margin of sampling error was ±2 percentage
points with a 95 percent level of confidence. Generations are
defined as: Generation Z, born after 1997; Millennials, born
between 1981 and 1996; Generation X, born between 1965 and 1980;
and Baby Boomers, born between 1946 and 1964.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and
payment services company with one of the most recognized brands in
U.S. financial services. Since its inception in 1986, the company
has become one of the largest card issuers in the United States.
The company issues the Discover card, America's cash rewards
pioneer, and offers private student loans, personal loans, home
equity loans, checking and savings accounts and certificates of
deposit through its direct banking business. It operates the
Discover Global Network comprised of Discover Network, with
millions of merchant and cash access locations; PULSE, one of the
nation's leading ATM/debit networks; and Diners Club International,
a global payments network with acceptance in 190 countries and
territories. For more information, visit
www.discover.com/company.
1 Discover® Identity Alerts currently include the following
services: (a) daily monitoring of your Experian® credit report and
an alert when a new account is listed on your report; (b) daily
monitoring of thousands of risky websites known for revealing
personal information and an alert if your Social Security Number on
is found on such a website. The Primary cardmember must agree
online to receive identity alerts. To see a list of Frequently
Asked Questions, visit discover.com/freealerts.
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version on businesswire.com: https://www.businesswire.com/news/home/20181114005128/en/
Discover Financial ServicesJeremy Borling,
224-405-4252jeremyborling@discover.comFollow us: @Discover_News
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