UK consumers are approaching the festive season more cautiously this year due to balancing the cost-of-living (67%), rising bills (44%), and reduced savings (35%). Despite this, most shoppers are determined to keep Christmas special by employing smart shopping strategies such as starting early (46%) and being careful with budgets (38%).
The Clearpay Festive Insights Unwrapped report, based on a nationally representative survey of more than 2,200 UK adults, found that the majority (77%) of UK consumers will have Christmas shopping finished by the end of November.
Being stringent with budgets is important to shoppers. On average, three-quarters (75%) of Brits plan to keep their festive spending under £800, with more than one in five (21%) capping spending at £200. More than a third (37%) report their seasonal budget is smaller than last year.
More than a third (35%) of shoppers are planning to spread the cost of Christmas with BNPL, with adoption being strongest among Gen Z (52%) and Millennial (48%) shoppers.
Of those considering using BNPL this festive season, electronics (45%), fashion and apparel (39%), and jewellery (35%) are the top categories with convenience (63%), reliability (58%), flexibility (52%), and speed (51%) driving their payment choice.
Shoppers aren’t just looking for loved ones this Christmas. Self-care has become a key part of the season, with 78% of consumers planning to treat themselves, particularly in food, beauty, and home comfort categories.
Rich Bayer, CEO at Clearpay, commented: “The festive season is always a special time, but 2025 brings fresh financial challenges for many households. What we’re seeing is a pragmatic approach; people are still planning to celebrate, but they’re planning earlier, being practical with their budgets, prioritising self-care, and turning to tools like BNPL to help them manage their spending responsibly.
“For retailers, this means offering customers value and payment flexibility throughout the season so that shoppers can make the most of the festive season despite financial pressures.”
Clearpay’s top three tips to encourage responsible spending with BNPL this festive season:
1. Spend what you can afford – know what your budget is and stick to it. Pause for 24 hours on any purchases you’re not sure about.
2. Reschedule instalment repayments if needed – with Clearpay this can be done on the app or by contacting customer service.
3. Use email and text payment reminders to prompt you to make sure you have money in your account in time for your repayment date.
