NEWS
US shoppers leverage AI for holiday budgeting with credit debt concerns
New Klarna holiday research reveals spending resilience , AI adoption and rising demand for interest-free payments as half of consumers say they are unlikely to settle their holiday credit card bills .
The average budget for gifts in the US is US $ 740 , significantly outpacing spending projections in other markets , like the UK ( US $ 560 ) or Germany ( US $ 371 ). However , a notable 61 % of US consumers confirm that rising prices have altered their holiday shopping approach .
US millennial shoppers report the largest budget among all age groups , totalling US $ 1,169 , while Gen Zers have the smallest budget at $ 462 . Gen X shoppers and Baby Boomers have set aside budgets of $ 575 and $ 525 , respectively .
65 % of US consumers plan to stick to a holiday budget this year , with Gen Z and Millennials leading the charge ( 71 % and 76 %, respectively ). Enthusiasm for budgeting weans with age , dipping to 51 % among Baby Boomers .
Amid budget management concerns , the dangers of credit card debt loom large among US shoppers . Over half ( 53 %) of US consumers express concern about incurring credit card debt during the holiday season .
Due to this , over a third ( 36 %) of US shoppers are open to exploring AI to enhance their shopping experience this holiday season .
“ With nearly one in two doubting their ability to pay off their holiday credit card bills entirely ,” said Kristina Elkhazin , Head of North America , Klarna . “ It ’ s no surprise that 81 % of shoppers find interest-free payment options like Buy Now Pay Later appealing as they also lean into budget-smart choices , harnessing tech-savvy tools like AI .”
PayPal announces investments to advance economic empowerment for women and girls
PayPal has announced it has invested in Sweef Capital ’ s
Southeast Asia Women ’ s Economic Empowerment Fund and Quona Opportunity Fund to support their shared mission to advance women ’ s inclusion in the global economic and financial system .
The investments are part of PayPal ’ s 2021 US $ 108 million commitment under the UN Generation Equality Forum to advance financial inclusion and economic empowerment for women and girls . They are the first of the company ’ s forthcoming US $ 100 million in capital investments into funds and other initiatives that are led by women or focused on serving women .
“ When women are economically empowered , they not only elevate themselves – they also enrich their families and communities , and propel the global economy forward ,” said Gabrielle Rabinovitch , PayPal ’ s Acting Chief Financial Officer . “ Through our strategic investments in Sweef Capital and Quona Opportunity Fund , which are committed to catalyzing enduring change across vital global markets , we will forge new pathways of opportunity and help advance women in the global economy .”
10 www . intelligentfin . tech