Australians are gearing up for a big holiday season, with new PayPal research revealing a creative use of Artificial Intelligence (AI) tools to make festive shopping easier and smarter and growing use of Buy Now, Pay Later (BNPL) to stretch budgets.
Digital Convenience Drives End of Year Sales Spending
Australians are embracing the convenience and excitement of holiday sales, with 70% planning to shop the End-of-Year (EOY) sales this year. More than half of Australians (56%) plan to shop the Black Friday sales alone – a third during the Black Friday early bird sales and 47% on Black Friday itself. A further 27% will shop on Cyber Monday.
EOY sale shopping is particularly strong among younger generations – 90% of Gen Z and 86% of Millennials plan to shop the EOY sales, highlighting how younger Australians are driving the nation’s appetite for the best holiday deals and discounts.
82% of Australians plan to shop online this holiday season – including nearly all (93%) of Aussies under 45 – as digital shopping continues to dominate. And more than half of Aussies (54%) say they’re looking to spend the same or more in this year’s sales season.
However, Australians are also shopping with care. There’s a growing focus on value and authenticity, with one in three (33%) agreeing that not every Black Friday deal is a genuine discount, and 31% saying their approach is to buy better, not more.
AI All the Way: Aussies turn to AI for smarter festive shopping
Artificial intelligence is shaping the way Australians approach holiday shopping, with 35% planning to use an AI tool such as ChatGPT, Perplexity or other shopping assistant this festive season. And for Aussies under 45, this rises to 56% who’ll use AI to help them holiday shop online this year.
Among those who’ll use AI, half (50%) plan to use it for gift ideas, 47% for finding deals or price comparisons, and 46% for locating discounts or promo codes.
While younger shoppers are leading the use of AI, Gen Zs are more likely to use AI for price alerts and trending gifts, while Millennials are using it for product comparisons and brand discovery – showing the different ways both groups are embracing AI for online shopping.
Wrap Now, Pay Later: How BNPL is helping budgets go further
Budget-conscious Aussies are turning to BNPL to make their money go further this holiday season. Three in ten Australians (30%) plan to use a BNPL service such as PayPal Pay in 4 for their holiday shopping.
Among those planning to use BNPL, the top reasons include spreading out costs over time (49%), convenience and ease of use (47%), and managing cost-of-living pressures (43%) However, more than a quarter (26%) say they would consider using BNPL if there are no late fees, underscoring the appeal of PayPal Pay in 4’s no late fees and no interest BNPL service.
Younger Australians are leading this shift – 56% of Gen Z and 42% of Millennials plan to use BNPL this holiday season. This highlights how younger shoppers are looking for payment choice and flexible options this festive period.
Cathy Jamieson, Consumer Shopping Expert, PayPal Australia, said, “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.
“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.”
Shop safe this holiday sale season
While Aussies are ready to shop, safety remains top of mind. More than half (55%) are concerned about scams or fake offers when shopping online. However, on a positive note, 81% say they’ll take steps to stay safe this holiday season.
Their top strategies include shopping only on trusted websites (55%), avoiding unfamiliar links (52%), and using secure payment options like PayPal (46%) which includes buyer protection for eligible purchases, giving Australians greater confidence to shop online safely this festive season.
