ETA and TSG Study Shows Modern Payment Technology Can Help Local Retailers Capture 36% More of Holiday Market
WASHINGTON, Nov. 17, 2025 /PRNewswire/ — Advances in payment technology are giving small businesses new tools to compete for holiday shoppers, according to a study released today by the Electronic Transactions Association (ETA) and TSG (The Strawhecker Group).
The sixth annual Consumer Holiday Spending Study found that 36% of consumers who don’t typically shop at small businesses say they would if local merchants offered the same payment convenience as big-box stores. With 51% of consumers planning to spend more than $500 on holiday gifts, up from 39% last year, even a modest shift toward small businesses could translate to significant revenue gains for local merchants.
The study also identified a significant opportunity in rural America, where consumers show the strongest loyalty to small businesses—54% prefer shopping locally, the highest of any area. Rural consumers show lower adoption of newer payment methods, but the study found that education and clear security messaging can help overcome hesitation, enabling rural merchants to capture more market share.
“The payments industry serves every merchant—from the corner café to the big-box retailer, from Main Street to the mall,” said Jodie Kelley, CEO of the Electronic Transactions Association. “For all merchants, especially SMBs, today’s payments innovations open new markets and build customer loyalty—allowing them to meet consumers where they are going to be, safely and securely. These parallel efforts of innovation and fraud prevention are keeping commerce fast, secure, and inclusive.”
The study of 1,027 U.S. consumers, conducted in September 2025, reveals that payment experience has become a critical preference in driving shopping decisions. 85% of consumers have tried tap-to-pay technology, and 48% have experimented with digital wallets—adoption rates that create real opportunities for businesses offering modern payment options.
“The technology infrastructure now exists for any business, regardless of size or location, to offer modern payment experiences,” said Mike Strawhecker, President of TSG. “Rural merchants have a built-in advantage with strong customer loyalty. Adding modern payment options, combined with education and security messaging, can help them keep that loyalty while competing more effectively against online retailers.”
The study also found that free shipping has emerged as the top priority for online shoppers—even more important than price—and that urban consumers are leading payment technology adoption, making cities ideal markets for innovative checkout solutions.
The complete study is available at www.electran.org/link
About ETA: The Electronic Transactions Association (ETA) is the world’s leading advocacy and trade association for the payments industry. Our members span the breadth of significant payments and fintech companies, from the largest incumbent players to emerging disruptors in the U.S. and in more than a dozen countries around the world. ETA members make commerce possible by processing approximately $52.7 trillion annually in purchases and P2P payments worldwide and deploying payments innovation to merchants and consumers. Learn more about ETA at www.electran.org.
Media Contact: Scott Talbott, [email protected]
About TSG
TSG (The Strawhecker Group) is a globally recognized analytics and consulting firm that supports the entire payments ecosystem, serving over 1,000 clients from Fortune 500 leaders to more than a dozen of the world’s most valuable brands. Trusted by industry leaders, TSG’s strategic services, market intelligence, and analytics merge to empower clients with actionable and accessible information. Please visit www.tsgpayments.com.
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SOURCE Electronic Transactions Association (ETA)
