‘Tis the Season for Giving, Despite Tight Holiday Spending
Nov 6, 2008
PayPal Survey Reveals That Even in a Shaky Economy, More People Intend to Give to Charity This Holiday Season

SAN JOSE, Calif.--Despite a tough economic environment, the holiday season is still a time for giving back. According to PayPals 2008 Holiday Survey conducted by Ipsos, nearly three quarters (73 percent) of online shoppers intend to give to charity this season, compared to 60 percent in 2007.

While seven in 10 (71 percent) plan to give the same amount to charity again this year, 10 percent actually plan to increase their giving. Charitable giving is strongest among older online holiday shoppers (those 45 and older, at 83 percent) and among the most affluent (with salaries of $100,000 per year or more, at 85 percent).

Our survey results show that even though people are cutting costs, theyre still planning to give back with donations and by choosing environmentally friendly gifts, said Cliff Hopkins, senior director, PayPal. In times like these, while people are spending less on gifts, the spirit of giving around the holidays is still very much alive.

Going Green

Nearly a quarter of online shoppers plan to buy gift cards or green gifts such as organic foods, eco-conscious clothing and recycled house wares this holiday season. Twenty-seven percent of shoppers, ages 45 and under, are planning to give green gifts. Additionally, college graduates are the most likely to receive alternative gifts including green items (28 percent), electronic gift cards (25 percent) and donations to charity on their behalf (20 percent).

Cutting Back

Seventy percent of online shoppers intend to spend less this season, mostly by purchasing fewer and less expensive gifts, limiting spending on parties and decorations, and staying home instead of traveling.

Free shipping is the promotion most likely to entice holiday shoppers to purchase their gifts online. More than 80 percent plan to shop online to take advantage of free shipping, cash back and other promotions.

Additional findings from PayPal's Holiday Survey include:

  • 45 percent of holiday shoppers consider themselves bargain shoppers, and nearly a quarter say that they shop year round for holiday gifts.
  • A third of online shoppers use PayPal for online purchases. Credit cards are the most common online payment method, followed by check cards.
  • 44 percent of online shoppers traveled last holiday season, though more than a quarter say that gas prices are limiting their travel plans this year.
  • One in five online shoppers plan to do more online shopping this year than they did last.*

Every day 250 nonprofits sign up with PayPal and over 100,000 nonprofits are currently using PayPal to collect donations. To find out more about how PayPal is helping charities visit: https://www.paypal.com/nonprofit

About the survey

The PayPal Holiday Survey was conducted by Ipsos, a leading global survey-based market research company, from October 13, 2008 to October 20, 2008 via email invitation to online panelists. The total sample size was 1000 respondents with quotas to ensure sample distribution by age and gender according to the online population.

*Between October 9, 2008 and October 13, 2008, PayPal and Omnibus also surveyed a random sample of 1000 telephone respondents. The age, gender and region of those surveyed was weighted to reflect the general population of the United States according to the most recent U.S. Census. This statistic comes from the phone survey.

About PayPal

PayPal is the faster, safer way to pay and get paid online. The service allows users to pay without sharing financial information and gives consumers flexibility to pay, including through account balances, bank accounts or credit cards. With more than 65 million active accounts in 190 markets and 19 currencies around the world, PayPal enables global ecommerce. PayPal is an eBay company (Nasdaq:EBAY). More information about the company can be found at https://www.paypal.com.

About Ipsos

Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world.

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