Leveraging Summer Payment Trends to Prepare for Year-End Success

As businesses navigate the economic landscape, understanding consumer behavior during the summer can provide invaluable insights for a successful fourth-quarter finish. This year, consumer spending habits were shaped by economic uncertainty, influencing everything from travel choices to payment methods. 

For small and seasonal businesses, these trends are particularly crucial, as summer performance can dictate year-round stability. By analyzing this data, businesses can develop effective strategies to capture holiday spending and end the year on a high note.

The mindset of the summer shopper

This past summer, consumers spent more deliberately, according to a recent report. With nearly 39% reporting a decrease in household income, and 70% anticipating a recession within the next year, shoppers are more budget-conscious. 

This caution was reflected by consumer shopping habits and in their travel plans. While 58%  still traveled, they cut back their spending by an average of 7% per trip. Many  opted for local getaways and "staycations" to save money on expensive long-distance travel. 

The search for value was a dominant theme, with 49% of summer shoppers actively looking for deals and discounts on their purchases.

What's in the cart, and how they're paying

Consumer priorities were evident in their shopping carts. Health and wellness were top of mind, with diet and nutrition products seeing a 15.8% increase in units sold. 

When it comes to splurging, experiences took precedence. 60% of consumers were most likely to spend extra on food and drinks, while 44% indulged in entertainment and activities.

Payment flexibility at checkout was more critical than ever. For travel expenses, 85% of consumers planned to use a credit card, often to accumulate points and rewards. Digital wallets were also a popular choice, with 65% of U.S. adults using them monthly, citing speed (80%) and convenience (76.9%) as key benefits. 

The demand for flexible payment options was particularly strong among younger demographics; 25% of Gen Z shoppers stated they would abandon a purchase if a Buy Now, Pay Later (BNPL) option wasn't available.

Small business summer cash flow

For many small businesses, summer is a make-or-break season. Seasonal businesses can earn up to 40% of their total annual revenue in just a few months, making strong summer sales essential for their overall success. 

However, managing finances during this critical period was a major hurdle this year. 63% of seasonal businesses identified cash flow management as their biggest challenge, highlighting the need for real-time financial reporting and flexible payment solutions. 

Furthermore, 53% of small business owners reported needing more financing  this past summer, versus a year ago, underscoring the demand for fast, card-based tools that can support growth without traditional loans.

From summer insights to Q4 victories

The trends observed during the summer months offered a clear roadmap for the upcoming holiday season. Businesses that adapt their strategies based on this data will be well-positioned for a successful fourth quarter.

Lead with value

The budget-conscious mindset that characterized summer spending will only intensify as consumers plan for the holidays.

Your holiday marketing should lead with value-driven messaging. Focus your campaigns on bundles, clear discounts, and promotions that emphasize how customers can get the most for their money. Reinforce this by promoting loyalty programs and exclusive offers that make shoppers feel their money is being well-spent.

Win the sale with frictionless payments

The checkout experience is a critical moment in the customer journey.

Ensure a smooth and convenient payment process to secure the sale. Promoting the acceptance of digital wallets and contactless payments can appeal to shoppers' desire for speed and convenience.

Market "gifts that do"

Consumers are prioritizing spending on experiences rather than physical items.

Position experiences as premium gift options in your marketing. Promote gift cards for restaurants, event tickets, and travel vouchers as thoughtful and desirable presents.

Curate relevant holiday gift guides

Health, wellness, and at-home activities have become established consumer priorities.

Capture these interests by creating curated holiday gift guides. Develop guides themed around wellness or hosting to align with shoppers' existing priorities and provide relevant gift ideas.