How FinTech Is Transforming Thanksgiving

When you think about Thanksgiving, the first things that might come to mind are the pilgrims, turkey, and pumpkin pie. Few people would think of their phones or the FinTech that powers many of the financial apps downloaded on them, yet these apps are making a powerful change to one of the biggest parts of the Thanksgiving weekend: the shopping extravaganza. Black Friday and Cyber Monday are two of the most popular shopping days of the year, with nearly two-thirds of Americans planning to scour the malls for deals.

But fewer of them are leaving their houses than ever before. As e-commerce and FinTech apps make it possible to shop from the comfort of your couch, the phone in your hand is changing the way you can celebrate Thanksgiving. 

Cyber Monday has become a cyber weeklong event

It wasn’t long ago when Cyber Monday was restricted to its titular name, but things change quickly online. Now, retailers like Amazon and Walmart start their Cyber Monday sales at the beginning of the week, giving shoppers seven full days to take advantage of their Thanksgiving deals. 

It’s working. Last year, Thanksgiving e-commerce sales rose by 18.3 percent to a record-breaking $2.87 billion. According to a survey conducted by Adobe, nearly half of all online traffic (46 percent) comes from smartphones.A separate study by the PwC shows 30 percent of respondents would do their shopping online, while only 19 percent would shop in-store. The results of the National Retail Federation’s annual survey forecasts holiday spending will rise again in 2018 by as much as 4.5 percent, which should impact Thanksgiving weekend sales.

Phones make it easier to shop

Digital native businesses are capitalizing on this changing trend. Those that cater to people who prefer to shop or research with their phones are getting more business. According to the NRF, the following features are compelling shoppers to use their phones:  

• Free shipping
• A limited-time sale or promotion
• Positive reviews
• Easy-to-use website or app
• Ability to buy online and pick-up in store

Digital payments are on the rise

The final step to an online experience is the payment process. It’s also the most important, as it’s what finalizes the deal for both the customer and retailers. Apps and websites that sync well with the mobile wallet are more successful in completing a sale from start to finish, with fewer consumers abandoning their cart out of frustration. 

FinTech performs cleanup 

Online and mobile services are also there for the financial fallout of Thanksgiving weekend. The chaos of Black Friday shopping is infamous with some true horror stories about desperate people getting hurt in the frenzy. While digital shoppers will avoid the crowds by shopping online, they aren’t unaffected by the final cost of their shopping. 

As just the start of the expensive season, any overspending in November will affect how they can celebrate the holidays. The average shopper tends to drop just under $1,000 on gifts, food, and decorations—which is a considerable figure for those shopping on a small budget. Add to that any unexpected bills or repairs and they may not have the savings to pay for all their responsibilities.

FinTech offers them a quick solution with online payday loans. Online lenders facilitate a convenient borrowing experience over their website, and some (including a company like MoneyKey) support their site with a lending app. These lenders offer fast online payday loans that lack the same complexities that can delay traditional personal loans or lines of credit. Their speed makes them an ideal solution for anyone who faces an unexpected essential car or household repairs after they indulged on the Thanksgiving weekend.

Shopping over the Thanksgiving weekend is a tradition held by many all over the country, but the annual pilgrimage to the mall doesn’t happen in a vacuum. It occurs in an increasingly digital world that’s changing the way people shop. E-commerce and digital payments make it easier and more convenient to shop online than ever before. As a result, the time-honored Thanksgiving ritual is getting an online upgrade.