Research Reveals Millennial Parents Will Pay More for Convenience This Holiday Season
MARKETING
According to NMI® Research 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.
The holidays are notoriously demanding, but for Millennial parents, the pressure this year is hitting a new peak. A major survey of 1,000 U.S. Millennial parents (ages 28 to 44) by NMI®, a global leader in embedded payments infrastructure, reveals a sharp conflict: this generation is struggling with tighter budgets, yet they are overwhelmingly willing to pay extra for speed and simplicity.
The study finds that while 73% of Millennial parents still link holiday shopping to joy and nostalgia, that joy is being dampened by significant stressors, including managing budgets (75%) and, critically, long checkout lines (72%).
The Currency of Convenience
Millennial parents, a generation raised on the promise of instant digital interaction, are clear about what retailers must do to earn their business: eliminate friction.
77% of Millennial parents would choose a retailer that offers tech to skip lines over one that doesn't.
A remarkable 75% say convenience is worth paying extra for.
51% report that long lines in-store cause them to abandon purchases entirely.
“Whether they're shopping in-store or online, Millennials want to get in and get out this holiday season,” said Peter Galvin, Chief Growth Officer at NMI. “It's creating a 'time is money' dynamic where speed, simplicity and effortless checkout become essential. Retailers can no longer afford to overlook payments innovation.”
Budget Pressure and Strategic Shopping
Despite the willingness to pay for convenience, the financial constraints are very real. 63% of Millennial parents say their holiday shopping budgets are tighter this year. To cope:
64% are thrifting or DIYing gifts.
44% have taken on a second job or extra work just to afford holiday gifting.
This financial pressure is also influencing payment preferences. 68% of Millennial parents hope small, local businesses will offer modern options like Buy Now, Pay Later (BNPL), reinforcing the broader trend of this generation seeking strategic, discount-driven shopping to maximize every dollar.
Three Parent Personas Emerge
NMI’s research identified three clear persona categories within the Millennial parent population:
The Efficiency Elves: High earners and fathers who strongly prioritize tech-driven convenience. 80% of high earners say convenience is worth paying extra for, and dads are twice as likely as moms to favor AI-driven recommendations.
The Holiday Hustlers: Single parents, mothers, and younger Millennials who feel the most financial pressure. This group is under the greatest strain (71% of moms say their budget is lower) and are most likely to seek out price comparison tools.
The Tradition Treasurers: Older Millennials and respondents with partners who value the in-store ambiance and nostalgic ritual of holiday shopping. They are more motivated by festive rituals, though they still expect modern checkout options to preserve the "joy of the season."
The lesson for retailers is undeniable: to win this holiday season, they must invest in the payments infrastructure that removes friction. Mobile Tap to Pay devices, digital wallets, and one-click checkout are no longer optional, they are essential experiences that keep the largest generation of shoppers from abandoning their carts.