Canadians are placing greater emphasis on budgeting and finding value this holiday season, while increasingly turning to loyalty rewards, second-hand gifts and artificial intelligence to manage their shopping, according to new research from Mastercard.
The company’s 2026 Holiday Shopper Snapshot found that 91 per cent of Canadians plan to maintain or increase their focus on budgeting, while 45 per cent intend to redeem more loyalty points and rewards than they did last year. The findings suggest consumers are looking beyond traditional price discounts to stretch their holiday spending while maintaining their focus on meaningful gifts and experiences.
The research, conducted in partnership with The Harris Poll, also points to growing interest in AI-assisted shopping, although consumers continue to place importance on maintaining control over purchasing decisions and protecting their personal and financial information.
“Canadians are becoming increasingly thoughtful about how and where they spend their money, but that doesn’t mean they’re willing to compromise on what matters to them, whether that’s creating meaningful experiences or supporting businesses in their communities,” said Craig Reiff, Senior Vice President, Core Payments, Mastercard in Canada. “Understanding how those expectations are changing gives us a clearer picture of where the consumer is heading and what they’ll expect from the shopping experience next.”
Budgeting and alternative gifting gain ground
The survey found that younger Canadians are showing particular interest in second-hand and vintage gifts as a way to manage holiday spending. Overall, 24 per cent of Canadians plan to increase their purchases of pre-owned gifts, compared with 44 per cent of Generation Z respondents.
Convenience is another factor influencing purchasing decisions. More than half of respondents, or 57 per cent, said they occasionally add an item for themselves to an online shopping order to qualify for free shipping.
Meanwhile, 60 per cent said they have turned to gift cards after running out of time to find a physical gift, highlighting the role of convenience in holiday purchasing decisions.
AI shopping comes with conditions
The research also found that some consumers are increasingly comfortable with artificial intelligence taking on a larger role in holiday shopping.
Among Millennials, 43 per cent said they would allow AI to handle all their gift purchases if it helped them avoid holiday-shopping stress. The figure was 38 per cent among Generation Z respondents and 26 per cent among Canadians overall.
However, consumers remain concerned about retaining oversight of automated purchasing decisions. Among respondents asked about potential AI shopping agents, 67 per cent said they want to approve when an AI agent uses their loyalty points or benefits.
Another 62 per cent expect AI shopping agents to consider product quality, trust and personal preferences rather than focusing exclusively on price.
“As online shopping increasingly becomes AI-enabled, Mastercard is focused on making these experiences secure, simple and useful,” said Reiff. “Consumers are open to new ways of shopping, but they want to understand how the technology works, feel confident their information and money are protected, and remain in control of purchasing decisions.”
Security and local spending remain priorities
Concerns about online security are also influencing where Canadians choose to shop. One-third of respondents, or 34 per cent, said they had encountered a suspected holiday shopping scam within the past two years.
The findings showed that 84 per cent of Canadians are more likely to purchase from familiar and trusted brands when concerned about scams. Another 75 per cent said they would take additional security measures even if doing so extended the checkout process.
The survey also points to continued interest in supporting independent retailers and spending on experiences rather than physical merchandise. Eighty-six per cent of Canadians plan to maintain or increase their shopping at small or local businesses, while 74 per cent intend to maintain or increase their spending on experiences instead of material gifts.
Mastercard said the findings highlight the importance of providing shopping experiences that combine convenience and technology with security, transparency and consumer choice.
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