Holiday Playbook 2025
Trends, Payments & Gift-Card Wins
The 2025 holiday shopping season is upon us, and data indicate that shoppers are getting a head start, being more discerning with their choices, and relying on mobile tools and AI recommendations to inform their buying decisions. That means for small businesses, success this year hinges not just on what you offer, but on how you make the shopping experience easier for your customers.
At PayStream, we're dedicated to helping small businesses succeed with smarter payment processing, simplified checkout options, and seamless customer loyalty programs. Here's what you can expect this season, along with some exciting opportunities to take advantage of.
Holiday 2025 by the Numbers
$253.4 billion in projected U.S. online holiday sales.
Overall retail growth is projected to be modest, up to 3%, but e-commerce continues to outpace brick-and-mortar.
Mobile transactions are expected to represent over 50% of all holiday purchases.
Buy Now, Pay Later (BNPL) use is rising, and consumers are spreading out payments to manage inflation.
AI-driven gift discovery is more than ever; tools (like shopping assistants and chatbots) are influencing purchasing decisions.Most business owners never deal directly with an ISO
What it means: Despite flat or slow growth this year and margin pressures due to inflation, businesses that offer personalized experiences and flexible payment options will have an advantage over their competitors.
Holiday Season Buying Trends
Consumers are rethinking how and when they buy. Here's what's changing, and how you can adapt:
Early Birds Rule: Shopping starts in October. Plan three waves of promotions: early access, main event, and last-minute deals.
Value Over Impulse: Inflation-conscious buyers prioritize practical, durable, or multi-use gifts over trendy splurges.
Bundles & Sets: Gift bundles simplify decisions and boost average order value (AOV). Pair a high-margin hero item with a smaller add-on.
Sustainability & Quality: Customers want purchases that feel good, responsibly made, thoughtfully packaged, and built to last.
AI Discovery: Optimize product titles, FAQs, and structured data so that AI tools (such as ChatGPT, Google SGE, or shopping bots) can effectively find and recommend your products.
Where Sales Are Won (or Lost): Payments & Checkout
A smooth checkout is the new storefront window; it's where conversions happen.
PayStream recommends focusing on payment flexibility and trust signals to reduce friction and cart abandonment.
Quick Wins:
For purchases over $75, offer Buy Now, Pay Later (BNPL). It boosts conversion rates and average spend.
Accept digital wallets (Apple Pay, Google Pay, PayPal, Venmo) and contactless cards.
Display all accepted payment options upfront, as confidence increases checkout completion. We also love festive and themed signage on display near checkout.
Simplify guest checkout and enable autofill to keep checkout to three screens or fewer.
Pro Tip: Use merchant processing solutions that easily integrate these payment options, without hidden fees or complicated contracts. If you're unsure about what you have or what you need, we're always available to help.
Gift Cards: The Underestimated Profit Driver
Gift cards are on track to become one of the hottest revenue sources during the 2025 holiday season, particularly those that are digital and user-friendly.
Why they work:
Perfect for last-minute shoppers and corporate gifting.
40% of consumers spend more than the gift card value when redeeming.
Easy to personalize with custom amounts, messages, or delivery dates.
How to maximize gift card sales:
Add a "Send as a Gift" button on every product page.
Create corporate gift bundles (e.g., "Buy 10 cards, get one free").
Promote digital gift cards in December emails and at checkout.
Loyalty & Membership: Turn Seasonal Buyers into Lifelong Customers
The holiday season is an ideal time to cultivate repeat business through loyalty or membership programs. Even small rewards keep customers coming back and talking about your brand.
Ideas that convert:
Offer double points days during your slower weeks.
Create an "Early Access Club" for members—exclusive deals before Black Friday.
Reward referrals with small gift cards or bonus credits.
Use loyalty data to send personalized thank-you offers in January.
Want To Be A Holiday 2025 Standout?
Want to stand out this season? Think about focusing on:
Early Marketing = Lower Ad Costs
Start campaigns before large retailers flood the market.
Curated Gift Guides
Help shoppers make informed decisions by creating categories like "Gifts Under $50" or "For the Hard-to-Buy-For."
Local + Personal Touch
Highlight local sourcing, craftsmanship, or service, as community buying remains important and continues to gain popularity.
Corporate Partnerships
Offer employee gifting or loyalty programs for nearby small businesses.
Smart Analytics
Track payment methods, cart drop-off points, and gift card redemptions to refine in real time.
Parting Thoughts
As we head into the 2025 holiday season, it's clear that the focus is on smarter selling rather than just making a lot of noise. With consumer spending either flat or rising (depending on income level), even if only slightly, and more people shopping online than ever before, your business has a unique opportunity. Whether you embrace flexible payment options, offer personalized gift solutions, or use loyalty-focused marketing strategies, your business can stand out and thrive against the big-box retailers. It's all about connecting with customers in meaningful ways!
Simplify your holiday sales strategy. Contact PayStream today to integrate smarter payments, gift card solutions, and loyalty tools that turn every transaction into a relationship.
Sources & References:
Adobe Analytics (2025 Holiday Forecast) Adobe Digital Economy Index: 2025 Holiday Shopping Forecast National Retail Federation (NRF) NRF 2025 Retail Sales Forecast Deloitte Insights 2025 Deloitte Holiday Retail Survey McKinsey & Company 2025 Consumer Pulse: Holiday Season Insights Digital Commerce 360 / eMarketer Holiday 2025 E-commerce Trends & Data Allied Market Research Digital Gift Card Market Outlook 2024–2025 PYMNTS.com Holiday 2025: The State of Buy Now, Pay Later Salesforce Shopping Index 2025 Holiday Shopping Index Report