Over a quarter of Millennial parents (27%) will spend over $500 per child, yet over half (51%) say long lines in-store cause them to walk away without completing their purchase
A new survey of 1,000 U.S. Millennial parents (ages 28 to 44) by NMI®, a global leader in embedded payments infrastructure, reveals that Millennial parents are grappling with a mix of emotions and challenges this holiday season. With childhood a recent memory for these young parents, 73% agree that holiday shopping evokes joy and nostalgia. Yet, a similar portion of these parents indicate that stressors like finding the right gift (72%), long checkout lines in stores (72%) and managing budgets (75%) put a damper on holiday shopping.
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NMI study identifies three Millennial parent holiday shopping personas: Efficiency Elves, Holiday Hustlers and Tradition Treasurers (Photo: NMI)
Limited time and money creates quite the holidaze for young parents
NMI’s study finds that Millennial parents are pressed for both time and money in 2025:
- 87% say the best shopping experiences are the ones where they can pay and leave quickly.
- 80% wish retailers offered more time-saving perks like tech to skip lines and modern payment options (digital wallet, smartwatch pay).
- Over half (52%) struggle to even find time to shop online for gifts and say that this stressor puts a damper on their overall holiday shopping experience.
Peter Galvin, Chief Growth Officer at NMI, said:
“Whether they’re shopping in-store or online, Millennials want to get in and get out this holiday season, and a few factors are influencing this mindset. NMI’s consumer research consistently finds that Millennials — a generation raised on convenience — strongly favor frictionless payments. But these parents are also working harder than ever to deliver holiday magic. It’s creating a ‘time is money’ dynamic where speed, simplicity and effortless checkout become essential.”
Rising prices are also shaping how Millennial parents approach holiday gifting: 64% are thrifting or DIYing gifts, and 44% have taken on a second job or extra work in 2025 just to afford them. Those same financial pressures are changing how they like to pay, with 68% of Millennial parents hoping small, local businesses will offer the same modern payment experiences as big-box retailers, including buy now, pay later (BNPL). This reinforces this holiday season's broader trend of Millennials increasingly turning to BNPL.
All they want for Christmas is a bit more convenience
Convenience is the currency that keeps Millennial parents loyal, and retailers that overlook this will lose business:
- 77% of Millennial parents would choose a retailer that offers tech to skip lines over one that doesn’t.
- 75% say convenience is worth paying extra for.
- 74% are more likely to shop online when retailers offer frictionless checkout like digital wallets or one-click payment.
- 68% are more likely to shop in store when they can use contactless or mobile payments.
- 51% say long lines often make them abandon purchases in store, and 53% abandon online carts due to clunky checkout.
Galvin added:
“The average Millennial spends over $31,000 in retail each year. This is also the generation that has the most young children and is leading NRF’s first-ever trillion dollar holiday season. But this year, many are underwater. The good news is they’re crystal clear about what retailers must do to earn their business. Retailers can no longer afford to overlook payments innovation when there are countless ways to remove friction. Mobile Tap to Pay devices that help parents checkout right from their shopping aisle, digital wallets and one-click checkout are no longer nice-to-have features. They are must-have experiences that prevent cart abandonment and restore joy to holiday shopping.”
Every Santa doesn’t shop the same
NMI examined how Millennial parents differ based on four demographics: partnered status, income, age and gender. Several themes emerged that grouped these shoppers into three clear persona categories:
The Efficiency Elves: dads and those earning over $75,000 annually, who prioritize fast, tech-driven checkout. These shoppers consistently over-index on convenience:
- 80% of high earners say convenience is worth paying extra for (vs. 67% of those making under $75,000 a year); 76% prefer retailers with frictionless online checkout.
- 57% of dads say contactless payments make holiday shopping easier, beating every other demographic segment; They’re also twice as likely as moms to favor subscription/recurring gift services and AI-driven product recommendations.
The Holiday Hustlers: single parents, mothers, younger Millennials (ages 28-36), and those earning under $75,000 annually, who feel the most financial pressure and stress. This group is under the most strain yet working incredibly hard to create holiday magic:
- 71% of moms say their budget is lower this year, and 49% have taken on extra work or a side job.
- 70% of single parents say budgets are tighter, and 54% of single parents have taken on additional work. 61% say price comparison tools make holiday shopping easier, compared to 47% of respondents with partners.
- 50% of younger Millennials took on extra work this season, and 67% feel pressure to get the most out of their spending.
- 75% of respondents making less than $75,000 annually say their holiday budget is lower than last year, 54% have taken on additional work, and 68% are DIYing or thrifting gifts.
The Tradition Treasurers: respondents with partners, dads and older Millennials (ages 37-44), who value the in-store experience and holiday ambiance. These groups are motivated by festive rituals and store atmosphere:
- 75% of respondents with partners say holiday shopping evokes joy and nostalgia (vs. 66% of single parents); 67% of respondents with partners say they like to shop in store to see, try and feel gifts before buying.
- 37% of dads say in-store shopping is a fun family activity (vs. 29% of moms), and 29% say supporting local businesses motivates them to shop in store (vs. 22% of moms). 29% also lean on in-store guidance from store attendants (vs. 19% of moms).
- Older Millennials are more drawn to in-store shopping at local small businesses (29% vs. 19% of younger Millennials). And across the board, 88% say retailers that leverage tech to make shopping easier preserve the joy of the season. Long lines are the top headache they want technology to fix, and 70% say it’s important for local small businesses to offer the same modern checkout options as big-box retailers.
For SaaS developers wanting to give their users the gift of seamless, embedded checkout this holiday season and beyond, visit https://www.nmi.com/dev-experience/.
About the study:
This study is based on an NMI poll conducted in November 2025 of 1,000 U.S. Millennial parents aged 28-44. All respondents confirmed they are the parent or guardian of at least one child under 18 living in their household. The sample used age-stratified and gender-balanced quotas to ensure demographic representation of the national Millennial parent population and was balanced for relationship status and household income to match U.S. population averages.
About NMI
NMI is powering the next generation of embedded payments with its modular payment acceptance platform and industry-leading gateway. Processing over $440 billion annually, we enable SaaS platforms, ISOs, PayFacs and banks to transform payments into a strategic advantage, driving growth, loyalty and new revenue streams.
Our modular, white-label platform puts partners in control, whether embedding payments into software or delivering payment services at scale. From no-code to full control API integrations, and from underwriting to compliance and risk monitoring, NMI handles the complexity so partners can focus on what matters most: their customers.
More than 4,000 technology partners trust NMI to deliver seamless, scalable payment experiences across online, in-app, in-store, mobile and unattended environments. However you're building the future of commerce, build it with NMI. Learn more at nmi.com.
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Contacts
Media
Audrey Surette (for NMI)
NMI@pancomm.com