3 Stocks to Profit from the $1 Trillion Holiday Shopping Bonanza

Core Insights - The 2025 holiday season is projected to generate approximately $1 trillion in retail sales, marking a 4.2% increase from $976 billion in 2024 [1][2] - The banking and payments sector is expected to benefit significantly from this surge, particularly through digital payments and Buy Now, Pay Later (BNPL) services [2][3] Digital Payments Industry - The holiday season is a critical period for digital payment providers, with transaction volumes expected to spike, testing the resilience of their infrastructure [3][5] - Digital payments are projected to continue their steady growth, with November and December accounting for about 15-20% of total retail sales globally [4][5] Key Companies to Watch - Visa (NYSE:V): Strong fundamentals with a 3.5% year-to-date increase; operates like a digital toll road, benefiting from inflation as transaction fees rise [7][8] - PayPal (NASDAQ:PYPL): Positioned to benefit from holiday-driven transaction increases; currently down over 27% in 2025 but has a strong user base and partnerships with major companies [10][11] - Block (NYSE:XYZ): Plans for a $5 billion share buyback and aims for $32.8 billion in revenue by 2028; combines various payment services and is seen as a resilient disruptor in the payments industry [12][13][14]