While the final numbers on holiday 2025 are still being compiled, it appears that the season was a strong one, with both Visa and Mastercard reporting year-over-year spending increases in the 4% range. As in previous years, ecommerce’s growth outpaced brick-and-mortar sales increases, climbing 7.4% (per Mastercard) and 7.8% (per Visa). But while ecommerce accelerated more quickly, stores remained the venue for the majority of holiday payment volume, at 73% of the total, according to Visa data.
Visa, which analyzes retail sales activity over a seven-week period beginning Nov. 1, reported a 4.2% increase in holiday sales. The MasterCard Spending Pulse, which measures in-store and online sales representing all payment types, showed a slightly less robust holiday, with retail sales (excluding automotive) climbing 3.9% for the Nov. 1-Dec. 21 period.
“Consumers demonstrated flexibility and confidence this season, shopping early, leveraging promotions and investing in meaningful experiences and wish-list items,” said Michelle Meyer, Chief Economist at the Mastercard Economics Institute in a statement. “They also blended online and in-store shopping to find the best deals and maximize convenience.”
These results are in line with the National Retail Federation’s early November prediction that 2025 would be the first trillion-dollar holiday season, with a spending increase of 3.7% to 4.2% over the 2024 holiday season. The association had made this forecast despite an October prediction of a 1.3% dip in per-consumer spending in 2025, to $890.49, down from 2024’s record high of $901.99.
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Another trend this season was the growth in spending beyond traditional retail. Payment provider Klarna reported remarkable YoY growth across entertainment (up 130%), experiences (up 115%) and a 100% increase in spending on automotive products, including vehicle maintenance and repairs.
