Buy Now or Pay More Later: Consumer Sentiment Drives Spending on Big-Ticket Items

man shopping television sets

Now’s the time to buy — because everything might get more expensive, sooner rather than later. To that end, the latest edition of the University of Michigan’s Consumer Sentiment Index shows consumers are positive about near-term current economic conditions. At the same time, they’re eyeing near-term inflation prospects, which are creeping up.

“A surge in buying conditions for durables led Current Economic Conditions to soar more than 20%. Rather than a sign of strength, this rise in durables was primarily due to a perception that purchasing durables now would enable buyers to avoid future price increases,” noted the comments from Surveys of Consumers Director Joanne Hsu.

In part, those anticipated price increases can be traced to concerns about the impact of possible tariffs to be imposed by the incoming Trump administration. The university’s report noted that there is a divergence between expectations from Democrats (where assessment of overall conditions are declining) and Republicans (where expectations are climbing).

The headline number detailed that consumer sentiment index rose from 71.8 points in November to 74 points in this preliminary December data. The consensus had expected a 72 reading, and the latest tally indicates the highest level seen in seven months.

The Inflation Expectations

Year-ahead inflation expectations rose from 2.6% to 2.9%, the highest level since July, and at the top end of the 2.3% to 3% range that has been seen through the past few years.

Long-term inflation expectations fell slightly, from 3.2% to 3.1%, matching consensus.

In recent coverage tied to durable goods — in this case, autos — PYMNTS took note of already high sticker prices and the high cost of debt.

The most recent retail sales data released by the government, for October, may serve as a harbinger for this pulling forward of larger ticket items. Spending on automobiles and parts surged by 1.6% while spending on electronics and appliances gained 2.3%. Spending on building materials and garden-related items gathered 0.5% as measured against September’s levels.

There may have been shifts in spending to make those purchases possible, given the fact that in discretionary spending, categories that slipped month over month were sporting goods, hobby, musical instrument and bookstores, as well as health and personal care — by 1.1% each. Spending on apparel was down by 0.2%

Separately, in terms of paying for it all, PYMNTS Intelligence data on the ways in which consumers are using credit and different payment options show that through the past year, 54% of more than 2,600 respondents used some type of split-payment option in the last year, including 65% of younger consumers such as Gen Z shoppers. Among all plan types, general-purpose card-linked installment plans were the most common, at 40%, followed by buy now, pay later (BNPL) plans  at 33%. Roughly 37% of shoppers used BNPL to buy furniture, and nearly 30% did so in order to buy appliances. Just about 10% of the individuals we surveyed said they’d used the paying-over-time options to buy new or used autos.


Cold Cash: The World’s Most Remote ATMs — From Antarctica to Everest

Antarctica

Highlights

From Antarctica to the Amazon rainforest, ATMs are boldly popping up in unexpected places.

Diebold Nixdorf made headlines with its announcement of installing two new ATMs at the U.S. National Science Foundation’s McMurdo Station in Antarctica.

The installation of ATMs in places like Antarctica and other remote locations highlights the evolving nature of banking technology.

We get a lot of press releases here at PYMNTS. We consider all of them, and some are more newsworthy than others. But this one really got our attention. This past week, Diebold Nixdorf made headlines with its announcement of successfully installing two new automated teller machines (ATMs) at the U.S. National Science Foundation’s McMurdo Station in Antarctica. This achievement marks a significant milestone in banking accessibility, to be sure. We would like to meet the crew that installed them. We’d also like to know why they needed two. Was there a line at the first one? More to come on that.

According to Diebold, McMurdo Station is Antarctica’s largest research and logistics hub, supporting a fluctuating population that ranges from fewer than 200 residents during the winter months to up to 1,100 individuals during the summer (October through February). The presence of these ATMs is crucial, it says, as the next closest banking facilities are thousands of miles away, making them the only ATMs on the entire continent. How’s that for a value proposition?

The DN Series ATMs are designed for always-on availability. And why do they need two? One ATM is actively in use, while the second serves as a backup for spare parts, ensuring uninterrupted service in this isolated area. These machines are connected to the DN AllConnect Data Engine, which leverages Internet of Things (IoT) connectivity, machine learning, and artificial intelligence (AI) to monitor their performance. A dedicated team continuously aggregates and analyzes technical data to identify potential issues, enabling remote diagnostics and repairs. The ATM can be maintained by trained staff at NSF McMurdo Station, or the Diebold Nixdorf service team can remotely guide them through the repair process.

Anyway, it got us thinking. Are there other surprising ATMs in extreme locations? Well, of course, there are. Here’s a sampling of what we found.

Mount Everest Base Camp: High Altitude Banking

At an altitude of about 5,364 meters (17,600 feet), the Mount Everest Base Camp in Nepal is another unexpected place to find an ATM. Although it’s not a permanent fixture and is often set up seasonally, it caters to climbers and trekkers who need cash for local transactions. This temporary ATM service underscores the adaptability of banking services in extreme environments.

The Amazon Rainforest: Banking in the Jungle

In some parts of the Amazon rainforest, particularly in Brazil and Peru, ATMs can be found in small villages and towns. These machines are vital for local communities, providing access to cash in areas where digital payment options might be limited. The presence of ATMs here demonstrates how banking services can reach even the most remote communities.

Nagqu, China: The Highest ATM

Located in the Tibet Autonomous Region, Nagqu is home to one of the highest ATMs in the world. This region is very remote, with limited infrastructure, making the presence of an ATM a notable example of banking accessibility in extreme environments.

Thousand Islands, Indonesia: Floating ATM

In the Thousand Islands (Kepulauan Seribu) off the coast of Jakarta, Indonesia, there’s a floating ATM. This unique ATM serves the local community and tourists on the islands, demonstrating how banking services can adapt to isolated marine environments.

Longyearbyen, Norway: The Most Northerly ATM

Longyearbyen, the administrative center of the Svalbard archipelago in Norway, boasts the most northerly ATM. This location is one of the most remote inhabited places on Earth, with limited access to mainland Norway, making the ATM a vital service for residents and visitors.

On a more serious note, the installation of ATMs in places like Antarctica and other remote locations highlights the evolving nature of banking technology. With advancements in IoT, AI and remote diagnostics, it’s becoming increasingly feasible to provide banking services in areas previously considered inaccessible. As we look to the future, it will be interesting to see where else ATMs might appear. Whether it’s on a remote island, at the top of a mountain or even in space, the ability to access cash is becoming more universal than ever. And who knows? Maybe one day, we’ll see an ATM on Mars, serving the first interplanetary travelers.

For now, the presence of ATMs in unexpected places reminds us that banking is not just about transactions; it’s about connecting people and communities across the globe, no matter how remote they might be.