Tech the Halls: How Fintech Has Revolutionized Holiday Shopping

Posted by Bethany Wood on Wed, Dec 20, 2023
Bethany Wood
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The holiday season is a time of joy and generosity, and also a lot of shopping. While we’re busy decking the halls, many of us are also decking our shopping lists with gifts for loved ones. As the years go by, one thing has become increasingly clear: holiday shopping isn't what it used to be. But thanks to the power of fintech, the way we shop, budget, and spend during the holiday season has undergone a remarkable transformation. Some fintech solutions are making holiday shopping more convenient, secure, and personalized than ever before.

Mobile Payments

Fumbling with wads of cash or a stack of credit cards at the checkout line has largely been alleviated thanks to mobile payment solutions. Fintech has ushered in services like Apple Pay, Google Pay, and various banking apps that allow you to complete transactions with a tap or scan of your phone. In addition to contactless payments methods being faster and more convenient, they are also more secure, using advanced encryption to protect your financial information. No need to fumble for your wallet; your smartphone becomes your digital wallet that stores your debit and credit cards, tickets, and some gift cards, streamlining the shopping experience.


Buy Now, Pay Later

The "Buy Now, Pay Later" model is a modern twist on the old layaway plan, but with instant gratification. Platforms like Afterpay, Affirm, and Klarna let you purchase your holiday gifts immediately and pay for them in installments, often interest-free. This approach can be a budget-saver during the expensive holiday season, allowing shoppers to get all their holiday gifts at once and spread out their spending to avoid straining their budgets or racking up high-interest credit card debt.


Budgeting Apps

Staying on budget during the holidays can be challenging, but budgeting for holiday spending has never been easier thanks to a plethora of personal finance apps. Tools like Mint (merging with Credit Karma in 2024), Copilot, YNAB (You Need A Budget), and PocketGuard help users track their spending, set budgets, and save for big purchases. With real-time updates and personalized insights, these apps ensure that you stay on the "nice" side of your holiday budget.

These apps can even send you alerts when you're approaching your spending limits, helping you avoid overspending and have a stress-free holiday season.


Digital Wallet Gift Cards

Gift cards have always been a popular holiday gift, but now we have digital gift cards that can be easily purchased and sent to recipients via email or messaging apps within minutes. While it lacks the personal touch of a physical gift, there are many added benefits to taking the digital route.

Often times gift cards wind up buried in a junk drawer or lost/misplaced. In fact, a recent report showed almost two thirds of American consumers have at least one unspent gift card, and at least half of consumers lose a gift card before they spend it. The report also found there is around $21 billion of unspent money tied up in unused and lost gift cards.

In a world where we’re more likely to forget our keys than our phone, being able to access a gift card from your smartphone at any time can help reduce the likelihood your gift gets lost or unused. Other added benefits include reduced paper and plastic waste, a larger variety of options, and a more convenient way to send gifts to those you won’t see in person.


Personalized Shopping Experiences with AI

Artificial Intelligence (AI) is making its way into the fintech space, and is already prevalent in your shopping experiences. AI-driven recommendation engines analyze your shopping habits, past purchases, and preferences to suggest gifts, and you can consult AI (such as ChatGPT) for personalized and budget-friendly recommendations for those on your shopping list that may have you stumped.

Meanwhile, retailers are utilizing chatbots and virtual assistants to provide quicker support and customer service, making your holiday shopping a little smoother and more enjoyable.

There are also tools leveraging AI to search websites for the best available deals and provide real-time price comparisons, ensuring that you get the best price out there.


The fusion of technology and finance is making holiday shopping more convenient and secure. From mobile payments to AI-driven shopping experiences, fintech is indeed revolutionizing holiday shopping. As we embrace these innovative solutions, we can look forward to a holiday gift buying experience that's not only easier but also a lot more joyful.

So, here's to a festive season filled with the spirit of innovation and less stressful shopping. Happy holidays and happy shopping!

Topics: Technology

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