Australians embrace AI & flexible payments for online sales
A large majority of Australians are planning to participate in end-of-year sales, with a strong shift towards digital tools and flexible payment options shaping the holiday season. New research finds 70% of adults intend to shop during the holiday sales period, with younger generations showing even greater engagement.
Digital shopping
Online shopping remains dominant, with 82% of Australians indicating they plan to purchase holiday items online. For those under 45, the figure rises to 93%. More than half (56%) of respondents expect to shop the Black Friday sales, and a further 27% will make purchases on Cyber Monday. Among Gen Z, 90% plan to shop the end-of-year sales, along with 86% of Millennials.
Despite the strong intent to spend, many shoppers remain cautious. One in three believe that not all Black Friday offers represent genuine discounts, and 31% say their priority is to make better purchases, rather than simply buying more.
AI assistance
Artificial intelligence is becoming an important resource for holiday shoppers. The data shows that 35% of Australians plan to use an AI tool such as ChatGPT, Perplexity, or other AI shopping assistants this season. Among those aged under 45, the proportion rises to 56%.
AI is mainly being used for sourcing gift ideas (50%), finding deals or making price comparisons (47%), and securing discounts or promo codes (46%). Gen Z shoppers are more likely to use AI for price alerts and identifying trending items, while Millennials focus on comparing products and discovering new brands.
"This end-of-year sales season, more Australians are turning to AI to help power their shopping - whether it's finding the perfect gift, uncovering the best deals, or enjoying a more tailored online experience. AI is changing the way people shop, and Australians are really embracing this evolution," said Cathy Jamieson, Consumer Shopping Expert, PayPal Australia.
Flexible payments
Flexible payment services are seeing increased uptake. Thirty percent of Australians plan to use Buy Now, Pay Later (BNPL) services such as PayPal Pay in 4 this holiday season. Chief drivers include the desire to spread costs over time (49%), convenience (47%), and managing cost-of-living pressures (43%).
BNPL usage is highest among younger consumers, with 56% of Gen Z and 42% of Millennials planning to use this kind of service. The appeal is further enhanced if late fees are removed, cited by 26% of those considering BNPL. PayPal Pay in 4 does not charge late fees or interest, a feature that may influence choice.
"We're also seeing more shoppers choose BNPL to spread out the cost of larger purchases - such as PayPal Pay in 4 with no late fees or interest. And with PayPal's trusted security and buyer protection, Australians can shop the sales with confidence, knowing their payments are in safe hands," said Jamieson.
Shopping safety
Safety remains a prominent concern for shoppers this year, with more than half (55%) expressing worries about scams or fraudulent offers online. Despite these concerns, 81% say they are taking extra steps to protect themselves.
The key strategies include shopping exclusively on trusted websites (55%), avoiding unfamiliar links (52%), and selecting secure payment options such as PayPal (46%). These measures are intended to increase confidence and reduce risk as the online shopping season progresses.
