New report: Non-prime shoppers aren't cutting back this holiday

Consumer confidence is low and prices keep rising, but non-prime shoppers aren't planning a smaller holiday. Instead, many plan to use pay-over-time options to bridge the gap between their budgets and their shopping plans.

Our 2026 holiday shopping report compares consumer responses to last year and explores new topics to uncover what merchants need to know about how non-prime consumers plan to shop this holiday season.

Holiday plans are holding steady

Overall, for the US consumer, holiday spending isn't expected to dip significantly this year. Shoppers are cutting back in other places, like travel, food, and other holiday expenses, to protect their holiday budgets.¹

Non-prime shoppers are following the same pattern. Compared with last year, more are planning large purchases and expect to spend $500 or more this season. The full report breaks down how they're budgeting and where they plan to spend.

Pay over time is how they bridge the gap

Rather than scale back, shoppers are making their holiday plans work by spreading out payments. Intent to use lease-to-own use among non-prime shoppers rose from 18% to 28% in a single year, and use of other pay-over-time options grew as well.²

That’s why your payment options can shape the purchase decision: non-prime shoppers said if their preferred merchant didn’t offer lease-to-own, 65% would abandon, delay, or downgrade their purchase.³ The report also shows how many would take their business to another merchant, and what that could mean for your sales.

Timing matters more than most merchants think

We also asked shoppers when and where they want to hear about payment options, and asked merchants when they share them. The answers don't line up.

Many shoppers want to know their options before they ever reach the store, while most merchants we surveyed primarily share them in store, through signage and associates.³ The report shows where that gap is and how to close it.

What this means for merchants

The holiday sale often starts before a shopper reaches your store or cart. The merchants who promote lease-to-own earlier in the buying journey will be the ones more likely to win the sale. Pay-over-time options can help shoppers complete their purchases with manageable payments.

If you already offer Koalafi, now is the time to bring your lease-to-own message forward, into your holiday ads, emails, social posts, and product pages.

If you're not offering lease-to-own yet, the findings make a clear case for adding it before peak season.

Read the full report to see the complete year over year comparison, where shoppers want to hear about payment options, and what it means for your holiday strategy.

¹ “Holiday Outlook 2026: A season of presents and presence.” PwC, 2026

² Koalafi proprietary research conducted in September 2026, surveying Koalafi customers; Koalafi proprietary research conducted in September 2025, surveying Koalafi customers.

³ Koalafi proprietary research conducted in September 2026, surveying Koalafi customers