Australia2025

PayPal

FEBRUARY

PayPal eCommerce Index 2025

About the research

The consumer research consisted of a sample of n = 1,022 Australians aged

18 - 75. The sample was weighted by age, gender and location to ensure

data was nationally representative. Significance testing was conducted at

a 95% confidence interval, with a potential sampling error of 2.9%.

The business research consisted of a sample of n = 413 decision makers

within Australian businesses. All businesses had to sell partially or wholly to

consumers, and partially or wholly online. Quotas were set on turnover and

location, and the industry. Significance testing was conducted at a 95%

confidence interval, with a potential sampling error of 4.7%.

Online self-completion survey. The research was carried out in compliance

with the AMSRS Guidelines and National Privacy Principles. Sample was

sourced through consumer and business research panels, with participants

incentivised for completing the survey.

The research was in field 10-26 September 2024.

Generational Ages at time of survey: Gen Z (18-27 years);

Mills aka Millennials (28-43 years); Gen X (44-59 years);

Baby Boomer (60-75 years).

Business counts: Small Businesses (<$2m turnover), Medium Businesses

($2m - $10m), Large Enterprises ($10m+)

This research report was produced by PayPal Australia Pty Ltd,

based on a study conducted by Fifth Quadrant with n=1,022

consumers and n=413 businesses. It contains general

observations about trends in eCommerce, as well as security,

buy now pay later, circular economy and the small business

landscape. The study does not take into account the objectives,

situation or needs of any specific business or individual.

The consumer research conducted by Fifth Quadrant consisted

of a 20-minute online survey of n=1,022 aged 18 – 75 years. In

addition, Fifth Quadrant conducted a 10-minute online survey

of n=413 business decision makers within Australian B2C

businesses who sell partially or wholly online. Numbers may

not add to 100% due to rounding.

Consumer sampling

Business sampling

Methodology

Timing

Generational Ages & Business Sizes

Key Insights

PayPal eCommerce Index 2025

With Businesses Also Worried

7-in-10 businesses are more concerned

about data security than 12 mths ago

•

Almost all have made efforts to improve their

security in some way (91%)

•

64% have been backing up data and updating

recovery processes to strengthen their security

•

Most are training staff to spot suspicious contacts

(60%), and conduct authenticity checks (53%)

Nearly All Australians Shop Online

96% of Australians shop online, and more

than 2-in-3 (69%) shop online weekly

•

Average of almost 3 purchases per week (2.9)

•

Average monthly spend of $1,247

PayPal remains the most preferred payment

option, selected by almost 1-in-3 Australians (32%)

And SMBs Are Responding

SMBs’ top priority is introducing or

optimising products & services

•

Online security is also a focus (58%), with over 4-in-

5 concerned about its cost and complexity (84%)

•

SMBs remain concerned about the economy (49%),

and its impact (inflation & cost of operations)

•

Just under 3-in-5 SMBs (59%) have lost out on over

$10,000 in revenue due to a lack of working capital

While BNPL Continues to Rise

37% of Australians use BNPL, up from 26%

last year

•

BNPL users spend $309 per month across around 3

transactions

•

BNPL is helping Australians split larger payments,

managing cost-of-living and budget/cashflow

Australians are 116% more likely to purchase from

a site that offers PayPal Pay in 4 than one that

doesn’t

With Cash Use Declining

Cash payments make up just 17% of

monthly spending

•

15% of Australians have stopped using cash entirely

•

Cash makes up just 15% of monthly sales for

Australian merchants

•

Over a quarter of businesses (27%) don’t take cash

payments

Security is a Growing Concern

4-in-5 consumers (79%) more concerned

about data security than 12 mths ago

•

91% of Australians have personally experienced

fraudulent activity

•

Just under 1-in-3 (30%) visited a fraudulent website,

with 10% fooled into making a payment on one

84% of consumers are hesitant to purchase from

an online merchant if PayPal is not available

Table of contents

PayPal eCommerce Index 2025

eCommerce in Australia

15%

54%

27%

Axis

Title

CQ2. How often do you do each of the following online?

BASE: All Australians n=1022, Gen Z (18-27) n=89, Mills (Millennials) (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

eCommerce

Online Shopping Frequency

Almost all Australians shop online (96%), with 69% buying at least weekly. On average, they make

2.9 purchases a week, rising to 4.3 for Gen Z and 3.8 for Millennials.

Almost all Australians shop online (96%),

with around 1-in-6 (15%) shopping online

daily. Overall, more than two-thirds of

Australians (69%) shop online at least

once a week, with an average of 2.9

purchases per week.

While the proportion who shop online

each week is largely consistent between

Gen Z, Millennials and Gen X, Gen Z have

the highest frequency of online purchases

per week (4.3), followed closely by

Millennials (3.8).

Older generations typically make fewer

online purchases per week, with Gen X

making an average of 2.4, and Boomers

even fewer at just 1.5 purchases a week.

Daily

Weekly

Less often

(All Australians 18-75 years)

Online Shopping Frequency

Total

Never

2.9

96%

of Australians

shop online

76%

81%

71%

52%

69%

4.3

3.8

2.4

1.5

GEN Z

MILLS

GEN X

BOOMER

of Australians shop

online at least once

a week

Average amount

of purchases per

week

Shop at least weekly and

average amount of purchases

per week by generation

71%

14%

Multi-device

Computer only

Mobile only

Tablet only

Non-eCommerce shopper

GEN Z

MILLS

GEN X

BOOMER

eCommerce

Online Shopping Device Use

Almost three-quarters of Australians shop across multiple devices (71%), with Boomers more likely

than other generations to use only computers (27%)

Most Australians use multiple devices to

shop online (71%) purchasing across

smartphones, tablets and computers.

Younger generations are more likely to be

multi-device shoppers with 86% of Gen Z

and 84% of Millennials using multiple

devices for online purchases or payments.

Around 1-in-4 (24%) Australians use just a

single type for making online purchases

device payments.

Older generations are more likely to use

just one device type, particularly the

computer- only shoppers (14%), with 27%

of Boomers using only computers for

online purchases.

When looking at preference of devices,

nearly half (47%) of Australians prefer

using their smartphones for online

purchases or payments.

CQ1b. Which of these devices do you currently use for online purchases or payments?

CQ1c. Which of these devices do you prefer to use for online purchases or payments?

BASE: All Australians n=1022, Gen Z (18-27) n=89, Mills (Millennials) (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

(All Australians 18-75 years)

Online Shopping Device Usage

Mobile Only

14%

Computer

Only

14%

27%

71%

Multi-Device

86%

84%

72%

51%

Tablet Only

16%

25%

47%

(All Australians 18-75 years)

Online Shopping

Device Preference

Desktop

Laptop

Tablet

Mobile

Other

Non-

eCommerce

shopper

eCommerce

Spend & Purchase Categories

Australian consumers spend an average of $1,247 per month online, with key categories being bill

payments, tickets, and clothing & accessories

Australian consumers spend an average

of $1,247 on online purchases or

payments each month (down 7% YoY

potentially reflecting cost-of-living

pressures). Three of the four generational

groups spend over $1,000 online monthly,

led by Gen X ($1,420), Millennials

($1,358),and Boomers ($1,136) with Gen Z

the lowest spenders by far ($892).

Bill payments (74%) is the most common

category for online spend, followed by

tickets (59%), clothing & accessories

(58%), with government payments and

food & drink both 52%.

Younger consumers tend to purchase

across more categories, with Gen Z and

Millennials more likely than their older

counterparts to purchase online

categories such as:

•

Electronics & Computing (Gen Z 31%,

Millennials 33%)

•

Online or Digital Gaming (Gen Z 36%,

Millennials 31%)

CQ6. Thinking about the online payments or purchases that you have made in the past 6 months, which of these categories have you purchased?

CQ8. In total, how much money have you spent on online purchases or payments in the last month?

BASE: All Australians n=1022, Gen Z (18-27) n=89, Mills (Millennials) (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

(All Australians 18-75 years)

Average Monthly Spend

$1,358

$892

$1,420

$1,247

Down 7%

from $1,334

last year

$1,136

consumers

18-75

AGE

Gen Z

Mills

Gen X

Boomer

43%

33%

47%

39%

% spending $1000 or more online per month

Purchase Category

Australians

18-75

AGE (highlighting options > 30%)

Gen Z

Mills

Gen X

Boomer

Bill Payments

74%

65%

73%

77%

76%

Tickets

59%

79%

61%

63%

43%

Clothing & Accessories

58%

65%

68%

59%

44%

Government fees and charges

52%

39%

56%

55%

51%

Food & Drink

52%

72%

62%

51%

33%

Subscriptions

48%

68%

56%

45%

33%

Grocery

43%

46%

54%

42%

32%

Travel & Tourism

44%

47%

43%

46%

41%

Transport

37%

49%

43%

37%

22%

Health & Beauty

30%

49%

34%

29%

18%

Electronics & Computing

24%

31%

33%

20%

15%

Home & Garden

23%

15%

29%

22%

21%

Online or Digital Gaming

21%

36%

31%

20%

Gambling

20%

13%

22%

26%

17%

Toys & Games

20%

23%

32%

18%

Fuel

18%

27%

20%

16%

13%

Digital or Virtual goods

18%

19%

23%

17%

11%

Charity

18%

13%

18%

19%

18%

Books & Magazines

16%

20%

15%

Sporting Goods

12%

13%

15%

Cryptocurrency

62%

58%

43%

35%

29%

27%

25%

23%

MILLS

33%

GEN Z

57%

eCommerce

Online Shopping Environments

Australians shop online in various environments, with 3-in-5 (62%) price checking or shopping while

in store. Australians also online shop while watching TV (43%), in bed (43%) or working (35%)

The ability to shop online is taken for

granted, with consumers online shopping

in different ways across a range of

settings.

Australian often complete online

behaviors while in store, with over 3-in-5

(62%) price checking or shopping on their

mobiles while in store.

When not in store, online shopping is

woven into day-to-day life, with

consumers digitally shopping while

watching TV/video streaming (43%),

lying in bed at the end of the day (43%)

or even while at work or working from

home (35%).

Younger generations (particularly

Millennials) are the most likely to engage

in this kind of multi-tasking, shopping

online while engaged in other activities.

(All Australians 18-75 years)

Online Shopping

CQ14. Thinking about shopping and browsing online, which of the following applies to you?

BASE: All Australians 18-75 n=1022, Gen Z (18-27) n=89, Millennials (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

Price checked or

shopped on mobile

in store

I've price checked

an item on my

mobile while

physically in

a store

I've shopped online

while watching

TV/video

streaming (e.g.

Netflix)

I've shopped

online while in

bed at the end

of the day

I've shopped

online while at work

or while working

from home

I've shopped online

while on public

transport or in a car

I've shopped online

for 'retail therapy'

I've shopped on

my mobile while

physically in a store

I've made a purchase

on the couch after

seeing an ad on TV

or streaming service

MILLS

61%

GEN Z

MILLS

GEN X

BOOMER

MILLS

58%

MILLS

48%

eCommerce

Online Payment Methods

Survey results show PayPal is Australia’s most preferred online payment method, with around a

third (32%) preferring PayPal and nearly two-thirds (64%) of Australians using PayPal for online

payments

The research indicates PayPal is the most

preferred online payment method for

Australians, with almost a third (32%)

preferring PayPal over alternatives.

When looking at online payment method

usage, Debit Cards (66%) are narrowly

ahead of PayPal (64%) when it comes to

the top payment method used by

consumers for their online payments and

purchases.

Coming in third for use are Credit Cards,

which are used by over half (54%) of

Australian consumers for their online

transactions.

Just over a third of consumers (37%) are

using BNPL services although only 1-in-10

consumers (11%) prefer it as their payment

method of choice.

Q3b. And which of the payment options that you use, if any, would you say is your preferred option for online purchases and payments? This excludes money being transferred to friends or family or

payments made online while in-store (Select one only).

CQ3a. Thinking about when you make a purchase or pay online, which of the following payment options, if any, have you used in the last 6 months? (Select all that apply) Please note 4% of consumers are

non ecommerce users

BASE: All Australians 18-75 n=1022

(All Australians 18-75 years)

Payment Methods used for Online Shopping

Online

Payment

Methods

Preferred

32%

18%

17%

11%

10%

PayPal

Debit Card

Credit Card

Buy Now Pay

Later

Apple Pay

Google Pay

PayID

Amazon, PayTo

& Shop Pay

Other

64%

66%

54%

37%

29%

20%

27%

PayPal

Debit Card

Credit Card

Buy Now Pay

Later

Apple Pay

Google Pay

PayID

Amazon, PayTo

& Shop Pay

Other

Online

Payment

Methods

Used

Note: 4% did not

have a preference

CQ23. If you find a product that you want on two separate sites, both of which are offering it for the same price, how likely would you be to buy it if...?

BASE: All Australians 18-75 n=1022

Relative uplift = Positive or negative percentage of likelihood to purchase if the service is available on that site when compared to that site without the service

eCommerce

The PayPal Effect

Consumers are more than 3 x more likely to purchase on sites which offer PayPal

The research reveals that Australians are

much more likely to purchase on websites

that offer PayPal, than on websites which

do not.

Regardless of whether the website is

based in Australia or overseas, the

research indicates that PayPal offers a

trust signal that increases likelihood to

purchase.

For Australian websites, consumers are

361% more likely to buy the same product

from a site with PayPal than from a site

without.

The impact of PayPal is more prominent

when it comes to international sites with

Australian consumers 425% more likely to

purchase on an international site that

offers PayPal than from one which

doesn’t.

(All Australians 18-75 years)

Likelihood to purchase if a product is …

75%

16%

361%

relative uplift

Available on an

Australian site that

accepts

PayPal

Available on an

Australian site that

does not accept

PayPal

70%

13%

Available on an

international site

that accepts

PayPal

Available on an

international site that

does not accept PayPal

425%

relative uplift

41%

40%

29%

14%

Chart Title

CQ5. Which of the following social media or streaming platforms, if any, have you made a purchase or payment through in the last 6 months?

BASE: C: All Australians n=1022, social shoppers n=284. Gen Z (18-27) n=89, Mills (Millennials) (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

eCommerce

Social Commerce Adoption and Platforms

Around 1-in-3 Australians (30%) made a purchase through social media in the past 6 months,

platforms most used by social shoppers are Facebook (50%), YouTube (44%) and Instagram (36%)

Around a third of Australian consumers

(30%) have made a purchase via social

media in the past 6 months, rising to

around 2-in-5 of Gen Z (41%) and

Millennials (40%). On the other hand,

only 14% of Boomers have purchased via

social media.

For those buying on social media, three

platforms stand out from the rest –

Facebook (50%), YouTube (44%) and

Instagram (36%).

There is a notable drop-off after this - the

next most popular platform is TikTok, but

only 16% of social media buyers have

purchased from this platform in the past 6

months.

While Snapchat has been used by just 9%

of Australians, this includes 21% of Gen Z,

highlighting their higher use of this

platform by the youngest cohort of

shoppers.

50%

44%

36%

16%

Facebook (incl. Messenger)

YouTube

Instagram

TikTok

X (formerly Twitter)

Snapchat

Discord

Twitch

WeChat

Other platform

21%

Gen Z

73%

Boomer

30%

of consumers made a

purchase through social

media in last 6 months

(All Australians 18-75 years)

Social Shoppers

(Social Shoppers)

Platforms Used by Social Shoppers

GEN Z

MILLS

GEN X

BOOMER

40%

30%

32%

MQ9. Do you currently, or will you in the next 6 months sell through via social media platforms (e.g. Facebook, Instagram, Pinterest, Twitch, TikTok)? MQ2. What proportion of your business’s online sales (i.e.

out of your total number of online sales) are made via the following methods? MQ8. Approximately how often, if ever, does your business use each of the following social media platforms to promote/market

your business (including paid ads and posts)? Note: On a regular basis (weekly or more often), occasionally (less often than weekly); BASE: M: Businesses that sell partially or wholly online n=413, Micro

(<$99k) n=94, SMB ($100k - $10m) n=259, Large ($10m+) n=60, Businesses that accept payments via social n=74

eCommerce

Business Use of Social Channels

About a third of Australian businesses (32%) sell through social media, accounting for 37% of total

sales. Furthermore, 90% of online businesses in Australia use social media for promotion.

In line with consumer adoption, 32% of

Australian businesses now sell through

social media, with micro businesses (40%),

in particular, using social channels for

sales.

Additionally, 90% of Australian

businesses use social media for marketing

and promotion, with a majority (59%)

doing so on a regular basis.

Social marketing is used by businesses of

all sizes, showing the importance of this

channel to reach consumers (Micro

businesses 85%, SMBs 91%, Large

businesses 90%).

89%

of Australian businesses

promote on social media

59%

31%

10%

On a regular basis

Occasionally

Never

Businesses

that sell via social

37%

Average % of sales

made via social

Up from

21%

last year

Social Sales & Promotion

(Businesses that accept payments via social)

(All Businesses)

Social Selling

32%

of businesses sell

through social media

MICRO

SMB

LARGE

(All Businesses)

85%

91%

90%

CQ9. How much of your monthly spending is in cash (i.e. compared to credit cards, debit cards, digital wallet, etc)?

BASE: All Australians 18-75 n= 1022, Gen Z (18-27) n=89, Mills (Millennials) (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

eCommerce

Consumers and Cash

With almost 1-in-6 Australians (15%) having already stopped using cash, rising to 1-in-4 Gen Z

(25%); across all Australians, cash makes up less than a fifth (17%) of monthly spending

Cash payments generally make up a small

part of consumer spending patterns, with

around twice as many Australians saying

they have stopped using cash (15%) as

those who say it makes up more than half

of their monthly spending (8%).

Cash does however still play a role for

most Australians, with around two-thirds

(67%) saying that it makes up between

1% and 30% of their monthly spending.

This aligns with the statistics for cash as a

share of spending, as it is sitting at 17% of

overall monthly spending for Australian

consumers. Boomers use cash the most,

but it still makes up less than a quarter

(22%) of their monthly spend.

(All Australians 18-75 years)

Cash Usage

(All Australians 18-75 years)

% Of Monthly Spend is Cash

Of Australian consumers have

stopped using cash completely

15%

67 %

11%

31%-50% cash

1%-30% cash

Stopped using

cash

51%+ cash

25%

16%

13%

11%

of Australian consumers

have stopped using cash

completely

10%

16%

17%

22%

Chart Title

17%

of monthly spend is

cash

GEN Z

MILLS

GEN X

BOOMER

14%

15%

12%

MQ7. How much of your monthly sales are cash (i.e. compared to credit cards, debit cards, digital wallet, etc)?

BASE: M: Businesses that sell partially or wholly online n=413, Micro (<$99k) n=94, SMB ($100k - $10m) n=259, Large ($10m+) n=60

eCommerce

Businesses and Cash

Around 1-in-4 businesses (27%) have already stopped using cash, rising to 2-in-5 Micro businesses

(41%); this is unsurprising given cash makes up less than a sixth (14%) of monthly sales revenue

Echoing consumer findings, cash sales

generally make up a small part of

business income, with only a minute

number of businesses (3%) receiving over

50% of their sales through cash.

Cash still has a role in businesses, with just

over half of businesses (57%) receiving 1-

30% of their sales through cash .

Similarly, this aligns with the statistics for

cash as a share of business sales, with an

average of 14% of sales being through

cash.

(All businesses)

Cash Sales

(All businesses)

% Of Monthly Sales are Cash

14%

of monthly sales are

cash

27 %

57 %

14 %

31%-50% cash

1%-30% cash

Stopped using

cash

51%+ cash

41%

22%

23%

of Australian businesses

have stopped using cash

completely

MICRO

SMB

LARGE

Table of contents

PayPal eCommerce Index 2025

eCommerce Drivers & Barriers

(All Australians 18-75 years)

Online Checkout Drivers

(All Australians 18-75 years)

Checkout Barriers

CQ12. Which, if any, of the following would lead to you being less likely to make an online purchase or payment?

CQ13. And, which of the following would lead to you being more likely to make an online purchase?

BASE: All Australians 18-75 n= 1022

Drivers & Barriers

Checkout Experience

Security and trust concerns (68%) are the most significant barrier to online checkout completion

while having preferred payment types (59%) or simple navigation (54%) are the top drivers for

conversion

Trust and security is the top checkout

barrier with over two-thirds of Australians

(68%) across all age demographics

showing a level of concern.

Other barriers include preferred payment

types not being offered (51%) and

difficulty with checkout such as it being

too long and confusing (47%), or having

to make a user account when guest

checkout is not available (45%).

On the flip side, the key checkout drivers

include offering preferred payment

methods (59%), easy navigation (54%),

including product reviews (51%).

Further, the research shows online

businesses can benefit from making

PayPal branding visible on their product

pages with 40% of Australians saying the

PayPal brand makes them more likely to

make an online purchase.

Long and confusing

check out

Offers my preferred

payment type

Easy navigation

Product reviews /

star ratings visible

on the store

Does not offer my

preferred payment type

Having to create a new

user account first/ guest

checkout not available

out

PayPal branding visible on

product pages, so I know

it's available at checkout

Security or trust

issues at checkout

68%

51%

47%

45%

59%

54%

51%

40%

(All Australians 18-75 years)

Abandonment

CQ11. Which, if any, of the following have you ever done when making a payment or purchase online?

BASE: All Australians 18-75 n=1022, Gen Z (18-27) n=89, Millennials (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

Drivers & Barriers

Abandonment

Over three-quarters of Australians (78%) have abandoned a purchase or payment online, due to

security concerns (44%), preferred payment method not available (38%), or surcharges (36%)

It is important that online businesses get

the checkout experience right for

consumers.

Over three-quarters of Australians (78%)

have abandoned a purchase or payment

online, particularly younger consumers

(Gen Z: 89%, Millennials: 84%).

The top reasons why consumers abandon

their carts are:

•

Security concerns at checkout (44%)

•

Preferred payment method not being

available (38%)

•

Didn’t complete because of a

surcharge (36%)

•

Checkout was too difficult (32%)

78%

Almost 4-in-5 Australians

users have abandoned a

purchase or payment online

31%

Of Australian eCommerce consumers have

added items to their card and abandoned it

in the hope of being sent an offer

44%

38%

Security

concerns

Preferred

payment

method wasn’t

available

36%

32%

Not completed

because of a

surcharge

Too difficult

89%

84%

79%

66%

49%

47%

48%

35%

49%

39%

31%

30%

44%

36%

31%

33%

34%

28%

(All Australians 18-75 years)

Top Reasons for Abandonment

GEN Z

MILLS

GEN X

BOOMER

44%

16%

12%

(All Australians 18-75 years)

ConsumerConcern

(All Australians 18-75 years)

Consumer Trust

66%

72%

75%

77%

CQ21. Which of the following online payment options would you trust to keep your payment secure and protect you should something go wrong with the purchase?

CQ22. Which payment option do you trust the most when purchasing or transacting online? [Select one only]

CQ24. Thinking about these, how has your level of concern about the following changed over the past 12 months?

BASE: All Australians 18-75 n=1022, Gen Z (18-27) n=89, Millennials (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

Relative uplift = Positive or negative percentage of likelihood to purchase if the service is available on that site when compared to that site without the service

Drivers & Barriers

Trust and Security

Three-quarters of Australians (73%) trust PayPal for secure online payments, with almost half

(44%) calling it their most trusted option. Furthermore, 84% are concerned when PayPal is not

available.

The research shows that almost three-

quarters (73%) of Australians trust PayPal

to keep their online payments secure, with

Boomers (77%) placing the most trust in it.

Trust is also high amongst other

generations.

Additionally, 84% of Australians are

concerned when PayPal is not available,

this concern being highest among

Boomers (89%) but prevalent across all

age demographics.

Debit Card is trusted by over half (55%),

followed by Credit Card (53%).

Results indicate that PayPal (44%) is also

the most trusted online payment method

in Australia, selected by more than 2-in-5

consumers. This puts PayPal well ahead of

other online payment options, with Credit

Card (16%) and Debit Card (12%), the

next most-trusted options.

Credit Card

53%

Debit Card

55%

(

All Australians 18-75 years)

84%

Concerned to make a

payment where PayPal

is not available

73%

Trust PayPal to keep

payments secure

74%

83%

84%

89%

Most Trusted Payment Options

GEN Z

MILLS

GEN X

BOOMER

Pay Pal

Credit Card

Debit Card

Apple Pay

Afterpay

Other

None of them

Non-eCommerce

User

(All Australians 18-75 years)

Shipping and Returns Barriers

CQ12. Which, if any, of the following would lead to you being less likely to make an online purchase or payment?

CQ13. And, which of the following would lead to you being more likely to make an online purchase?

BASE: All Australians 18-75 n=1022, Gen Z (18-27) n=89, Millennials (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

Drivers & Barriers

Shipping and Returns

Shipping costs & times, and return policies all play an important role in facilitating online purchases,

with most Australians (81%) citing expensive shipping fees as a barrier to purchase

Shipping and return options are key

elements Australian businesses should

consider.

Shipping cost is a key barrier to purchase

for 8-in-10 Australians (81%), with long

shipping times (52%) and return shipping

costs being too high (37%) also playing a

role.

Conversely, shipping and returns can also

increase likelihood to purchase. It’s no

surprise that free shipping is top of the list,

with more than 8-in-10 (84%) saying this

makes them more likely to make an online

purchase or payment.

Consumers also respond well to free

return shipping (65%) and shipping times

being within the window required (59%).

Shipping and Returns Drivers

(All Australians 18-75 years)

81%

Shipping fees being

too expensive

52%

Shipping times

being too long

81%

84%

83%

78%

58%

53%

42%

37%

Return shipping

costs are too high

35%

38%

37%

84%

Offers free shipping

65%

Offers free return

shipping

79%

86%

87%

82%

61%

68%

67%

61%

59%

Shipping times are

within the window I

require

62%

63%

60%

51%

GEN Z

MILLS

GEN X

BOOMER

Ethical Motivation

CQ13. And, which of the following would lead to you being more likely to make an online purchase?

BASE: All Australians 18-75 n=1022, Gen Z (18-27) n=89, Millennials (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

Drivers & Barriers

Ethical Shopping

Despite cost-of-living pressures, ethical factors continue to play a role in purchasing decisions. Over

a third of Australians (39%) have made a purchase decision based on ethical considerations; rising

to half of Gen Z (51%)

Ethical factors play a role in purchasing

decisions for over a third of Australians

(39%), with this being particularly

important for Gen Z (51%).

Breaking this down further, nearly a

quarter (22%) cite worker pay and

conditions, either locally or in the supply

chain, as a consideration, while for nearly

1-in-5 (17%) it is about the environmental

impact of the online businesses they are

looking to buy from.

One-in-ten consumers (12%) also cite the

diversity and inclusion policies of the

businesses they interact with as a factor.

On all fronts, Gen Z feel more strongly

about ethical considerations, with a third

citing worker pay and conditions (32%),

and environmental impact (30%), and a

fifth citing diversity and inclusion (20%).

39%

of Australians make online

purchasing decisions based

on ethical considerations

Ethical Considerations that Motivate Online Purchases

22%

17%

Worker pay and

conditions either locally

or in supply chain

Environmental

impact

12%

Diversity and

inclusion

51%

44%

36%

30%

32%

23%

17%

19%

30%

18%

13%

14%

20%

14%

(All Australians 18-75 years)

GEN Z

MILLS

GEN X

BOOMER

Table of contents

PayPal eCommerce Index 2025

Security

71%

Scam texts

(claiming to be from

legitimate businesses

or government)

77%

Scam emails

CQ26.Which of the following types of scams have you received or experienced, even if you have not fallen victim?

CQ25. And which of the following, if any, have happened to you?

BASE: All Australians 18-75 n=1022, Gen Z (18-27) n=89, Millennials (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

Security

Consumer Security Attitudes

9-in-10 Australians (91%) have experienced contact from fraudsters, with three-quarters having

received scam emails (77%), calls (72%), or texts (71%)

Most Australians (91%) have personally

experienced contact from fraudsters with

younger generations reporting the

experience of fraud and scam contacts at

a higher rate than older generations.

This includes a range of fraudulent

activity with around 3-in-4 four

consumers having experienced:



Scam emails: 77%



Scam phone calls or voicemails: 72%



Scam text messages: 71%

Alongside this, 2-in-5 consumers (40%)

have received fake invoices or bills.

Around 1-in-10 Australians (12%) has lost

money as a result of a scam.

91%

of Australians have

personally experienced

fraudulent activity

Consumer Security Experience

Consumer Security Components

42%

41%

42%

37%

72%

Scam phone

calls or

voicemails

40%

Fake invoices

or bills

70%

73%

80%

83%

69%

68%

71%

80%

67%

77%

71%

88%

89%

92%

93%

(All Australians 18-75 years)

13%

12%

11%

12%

Lost money

as a result of

a scam

GEN Z

MILLS

GEN X

BOOMER

Security Concerns

CQ24. Thinking about these, how has your level of concern about the following changed over the past 12 months?

BASE: All Australians 18-75 n=1022, Gen Z (18-27) n=89, Millennials (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

Security

Consumer Security: Total Concerns

Most Australians (79%) are more concerned about the security of their personal data than they

were 12 months ago

Almost 4-in-5 Australians (79%) are more

concerned about the security of their

personal data than they were 12 months

ago.

Specific areas of concern include:

•

My personal details being available to

criminals on the dark web (54%)

•

Privacy of my personal data and

control over how it is used (53%)

•

Safety and security of personal data

I’ve shared with businesses I deal with

(52%)

•

Sharing my financial details when I

buy things online (50%)

The level of concern increases with age,

with Boomers most likely to have grown

more concerned about their personal

data security than other generations.

79%

Australian consumers

more concerned about

security of their data

than 12 months ago

54%

53%

My personal

details being

available to

criminals on the

dark web

Privacy of my

personal data

and control over

how it is used

52%

50%

Safety and security

of personal data

I’ve shared with

businesses I deal

with

Sharing my

financial details

when I buy things

online

% of Australians are more concerned than 12 months ago about…

(All Australians 18-75 years)

GEN Z

MILLS

GEN X

BOOMER

45%

49%

55%

64%

69%

78%

81%

84%

42%

52%

55%

59%

42%

49%

54%

57%

41%

45%

53%

58%

82%

Concerned about

cyber criminals

impersonating

your business

CQ25. And which of the following, if any, have happened to you? CQ26. Which of the following types of scams have you received or experienced, even if you have not fallen victim?

MQ16. How has your level of concern about the following changed over the past 12 months? MQ20: Which of the following, if any, do you agree with?

BASE: C: All Australians 18-75 n=1022, Gen Z (18-27) n=89, Millennials (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

M: Businesses that sell partially or wholly online n=413, Micro (<$99k) n=94, SMB ($100k - $10m) n=259, Large ($10m+) n=60

Security

Online Shopping Fraud

Almost a third of Australians (30%) have visited fake websites, with 1-in-3 of these saying they’ve

also made a payment. Businesses are also affected, with 25% facing more payment fraud attempts

than before.

Almost a third of Australians (30%) have

visited a fake website. And with 10% of

Australians reporting that they’ve made a

purchase through a fake website, it means

that 1-in-3 of all the consumers that visit a

fake website have actually gone all the

way and made a purchase, potentially

losing their money and exposing their

details to cyber criminals.

Business concerns reflect the consumer

experience, with 82% of businesses

worried that online fraudsters will attempt

to impersonate them, and 84% concerned

about the cost and complexity of staying

ahead of cyber criminals.

Additionally, 25% of businesses have

experienced more attempted payment

fraud, and 15% report an increase in

chargeback fraud compared to three

years ago.

Consumer Online Shopping

Fraud Experience

(All Australians 18-75 years)

Business Concerns with Shopping

Fraud

(All Businesses)

84%

Concerned about

cost and

complexity of

staying ahead of

cyber criminals

25%

15%

Our business

experiences more

attempted

payment fraud now

than 3 years ago

Our business

experiences more

chargeback

fraud now than 3

years ago

77%

83%

88%

44%

31%

29%

24%

84%

85%

82%

13%

25%

42%

15%

23%

GEN Z

MILLS

GEN X

BOOMER

MICRO

SMB

LARGE

30%

Visited a fake

website

10%

12%

10%

Made a purchase

or payment

through a

fraudulent site

MQ19. How would you rate the capabilities of your business when it comes to..

CQ27. Thinking about keeping your details safe and secure online, which, if any, of the following do you agree with?

CQ24. Thinking about these, how has your level of concern about the following changed over the past 12 months?

BASE: C: All Australians 18-75 n=1022, Gen Z (18-27) n=89, Millennials (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

M: Businesses that sell partially or wholly online n=413, Micro (<$99k) n=94, SMB ($100k - $10m) n=259, Large ($10m+) n=60

Security

Consumer Expectations & Business Readiness

The majority of businesses (71%) rate themselves as cybersecure, however only 29% of Australian

consumers trust them to keep their details safe.

Most Australian businesses (71%) rate

themselves as ‘very good’ in at least one

component of their cybersecurity

capabilities.

However, consumer attitudes don’t match

up with business self-assessment. Only

29% of Australian consumers trust

Australian businesses to keep their details

safe.

Around two-thirds of consumers (69%)

expect the businesses they deal with

online to keep their details safe, and

almost half (48%) are more concerned

that Australian businesses are not doing

enough to address data security.

69%

29%

Expect the business

they interact with

online to keep their

details safe

I trust Australian

businesses to keep

my details safe

48%

Australian

businesses not doing

enough to address

this issue

61%

62%

75%

76%

28%

32%

24%

29%

39%

43%

48%

57%

Consumer Concerns (vs. 12 Months Ago)

(All Australians 18-75 years)

Business Security Evaluation

(All Businesses)

Consumer Security Expectations

(All Australians 18-75 years)

GEN Z

MILLS

GEN X

BOOMER

71%

Australian Business rate at least one component

of their Cybersecurity Capabilities “Very Good”

67%

73%

70%

MICRO

SMB

LARGE

CQ28. Which of the following have you done, or do you plan to do to strengthen your online security?; CQ26.Which of the following types of scams have you received or experienced, even if

you have not fallen victim?; CQ25. And which of the following, if any, have happened to you?

BASE: All Australians 18-75 n=1022, Gen Z (18-27) n=89, Millennials (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

Security

Consumer Security Measures

Australians are taking action to address online security, with most (98%) taking steps to protect

themselves including two-thirds (67%) who report using PayPal for secure online purchases

Nearly all consumers (98%) have taken

steps to protect themselves online, with

the top actions being to treat calls, emails

and texts with more suspicion (88%),

enabling two-factor authentication

(83%), improving their passwords (70%)

and learning more about how to identify

scams (67%)

Two-thirds of Australians (67%) agree

that they use PayPal for secure online

purchases as a means of strengthening

their online security.

67%

of Australians use PayPal

for secure online purchases

PayPal Effect

(All Australians 18-75 years)

Actions Taken to Strengthen Security

(All Australians 18-75 years)

63%

64%

69%

88%

83%

Treat calls, emails

and texts with

more suspicion

Enable two-

factor

authentication

70%

67%

Improve

passwords

Learn more

about how to

identify scams

and stay safe

online

78%

88%

89%

91%

79%

83%

86%

82%

56%

73%

72%

53%

67%

68%

73%

98%

Of Australians have taken at

least one step to strengthen their

online security

GEN Z

MILLS

GEN X

BOOMER

MQ16. Thinking about the challenge of keeping sensitive information safe and secure, how has your level of concern about the following changed over the past 12 months?

M: Businesses that sell partially or wholly online n=413, Micro (<$99k) n=94, SMB ($100k - $10m) n=259, Large ($10m+) n=60

Security

Business Security Concerns

Most Australian businesses (71%) are more concerned than 12 months ago about data security,

particularly impersonation (38%) and the cost of attacks (38%)

Most Australian businesses (71%) are

becoming more concerned about the

security of their data and financial

details. While this has changed the most

over the past 12 months for Large

Enterprises (75%), it holds true for two-

thirds or more of businesses across all

segments.

The top areas where businesses have

increased concerns are around cyber

criminals impersonating either their own

business (38%) or suppliers, vendors,

service providers or business partners

(37%), as well as the cost of staying

ahead of cyber criminals (38%).

71%

of Australian businesses

more concerned than 12

months ago about

security of their data

and financial details

Security Concerns

% of Australian businesses more

concerned than 12 months ago about…

36%

34%

45%

38%

Cyber criminals

impersonating

your business

The cost and

complexity of

staying ahead of

cyber criminals

37%

36%

Cyber criminals

impersonating

suppliers, vendors,

service providers,

business partners

Keeping your

customer's data

safe and secure

39%

34%

48%

41%

37%

35%

41%

33%

48%

66%

71%

75%

MICRO

SMB

LARGE

(All businesses)

56%

59%

Cyber criminals are

becoming more

sophisticated in their

attempts to defraud

businesses

Merchant Security Attitudes

MQ20. Which of the following, if any, do you agree with?

M: Businesses that sell partially or wholly online n=413, Micro (<$99k) n=94, SMB ($100k - $10m) n=259, Large ($10m+) n=60

Security

Security Attitudes

Over half of Australian businesses (59%) agree that cyber criminals are becoming more

sophisticated and that they have a duty to provide secure online services (56%)

Almost 3-in-5 Australian businesses (59%)

agree that cyber criminals are becoming

more sophisticated in their attempts to

defraud businesses, with this sentiment

expressed consistently by businesses of all

sizes.

As a result of this, just over half (55%)

believe that businesses of all sizes will

need more advanced cyber security in the

future.

They accept this responsibility, with more

than half (56%), regardless of size,

agreeing that it’s their duty to provide

secure online payment processes.

55%

Businesses have a

duty to provide

secure online

payment processes

Businesses of all sizes

will need more

advanced cyber

security in the future

64%

53%

55%

54%

60%

65%

56%

60%

(All Businesses)

MICRO

SMB

LARGE

MQ17. Which of the following have you done, or do you plan to do to keep sensitive information safe and secure

M: Businesses that sell partially or wholly online n=413, Micro (<$99k) n=94, SMB ($100k - $10m) n=259, Large ($10m+) n=60

Security

Business Security Measures

Most Australian businesses (91%) have also taken steps to safeguard themselves when it comes to

their cyber security systems and processes

Nearly all Australian businesses (91%)

have taken steps to strengthen their cyber

security capabilities, keeping information

safe and secure.

The top actions that have been taken by

businesses to strengthen their security

have been backing up their data and

implementing a recovery process (64%),

encouraging employees to treat calls,

emails and texts with more suspicion

(60%) and taking additional steps to

verify authenticity of communication with

customers, vendors and suppliers (53%).

Recognising that human errors can be a

prevalent attack vector for cyber crime,

almost half (48%) have also introduced or

increased employee training.

91%

of Australian businesses

have done something to

strengthen their

businesses cyber security

Taking Action

Actions Taken to Strengthen Security

30%

50%

68%

64%

60%

Back-up our data

and implement a

recovery process

Encourage employees

to treat calls, emails

and texts with more

suspicion

53%

48%

Take additional steps

to verify the

authenticity of

communication with

customers, vendors,

suppliers etc.

Introduce or increase

employee training

48%

66%

78%

46%

63%

73%

35%

55%

72%

79%

95%

93%

(All Businesses)

MICRO

SMB

LARGE

Table of contents

PayPal eCommerce Index 2025

SMB Landscape

MQ5. Thinking more broadly, which (if any) of the following business areas are important for your business’ success

BASE: Small and Medium Businesses that sell partially or wholly online, (SMB) ($100k - $10m) n=259

SMB Landscape

Small Business Priorities

Australian small and medium business have shifted priorities towards introducing or optimising their

product and service offering (47%), and away from social media strategies that topped this list in

2024

The cost-of-living crisis and continued

competitive pressures have led Australian

SMBs to prioritise their efforts around

introducing new products or services

(47%) or optimising their existing product

offering (47%).

This is a shift from last year, when social

media strategy was the lead business

priority for SMBs (40% in 2024).

Another important priority for Australian

SMBs is cyber and data security (41%), to

ensure customers and themselves are kept

safe online.

Around half of all Australian SMBs (49%)

have at least one ethical concern as a

priority, with the top ethical concern

being to ensure worker pay and

conditions, both locally and in their supply

chain, are fair and equitable (25%).

47%

41%

37%

29%

21%

25%

20%

19%

17%

20%

40%

60%

80%

100%

120%

Introducing new products or services

Optimising product or service offering

Cyber and data security across the business

Increasing customer retention

Social media strategy

Plan to address cost of living pressures

Investigating Artificial Intelligence tools

An ethical approach to worker pay and conditions both locally and in our supply

chain

Initiatives to reduce our environmental footprint

Diversity and inclusion initiatives

Introducing new initiatives to support customers and reduce wastage

40%

2024

32%

2024

(SMB Businesses)

Broader Business Priorities

34%

2024

NET Ethical Business

Priorities 49%

MQ4. Which (if any) of the following are important to the success of your eCommerce offering?

BASE: Small and Medium Businesses that sell partially or wholly online, (SMB) ($100k - $10m) n=259

SMB Landscape

eCommerce Priorities

The top eCommerce priority for Australian SMBs in 2025 is safety and security (58%, up 14% YoY),

with improving customer experience (49%) and attracting new visitors (40%) also key priorities

Safety and security rank as the top

eCommerce priority for Australian SMBs

in 2025 (58%). This is up 14% YoY from

44% in 2024, in line with the increased

concern from businesses regarding cyber

security.

Another top priority that increased

significantly YoY is improving customer

experience (49%), up 11% from 38% last

year. Attracting new customers rounds out

the top three eCommerce priorities for

Australian SMBs.

Return and refund policies (32%) and

processes are also an increasing priority

up 10% from last year (22%).

58%

49%

40%

34%

32%

29%

28%

16%

Safety and security

Improving online customer experience

Attracting new site traffic

Converting visitors to sales

Return and refund policies and processes

Technologies to simplify and improve operations

Personalisation of offers and promotions

Data analytics and insights to understand our customers

Online loyalty & rewards programs

Automated chat technologies

22%

2024

38%

2024

(SMB Businesses)

SMB eCommerce Priorities

44%

2024

MQ6. Which (if any) of the following are concerns for your business?

BASE: Small and Medium Businesses that sell partially or wholly online, (SMB) ($100k - $10m) n=259

SMB Landscape

Business Concerns

The state of the economy continues to be the top concern for SMBs (49%), closely followed by

inflation (47%), these are both up 8% from last year

The state of the economy continues to be

the top concern for small businesses (49%

concerned up 8% YoY) with inflation a

close second (47% also up 8% YoY).

Other key concerns are: Cost of

operations (44%) and reduced consumer

spending (43% up 10% YoY).

The area of concern that had the largest

YoY increase for SMBs is “Staying afloat

and making a decent living”, with almost

a third of SMBs (30%) now having this

concern, up 12% YoY.

49%

47%

44%

43%

32%

30%

29%

26%

25%

24%

15%

The state of the economy

Inflation

Cost of operations

Reduced consumer spending due to cost of living pressures

Risk of a global recession

Safety and security of data and financial information

Increased inventory and supply costs

Staying afloat/making a decent living

Changes in the competitive landscape

Keeping up with technology

Increasing regulatory red tape

Difficulties finding trained staff / enough staff

Access to finance

33%

2024

39%

2024

(SMB Businesses)

SMB Business Concerns

41%

2024

18%

2024

19%

2024

20%

18%

17%

15%

14%

12%

11%

10%

36%

MQ21. Which, if any, of the following statements apply to your business with regard to selling online internationally?

BASE: Small and Medium Businesses that sell partially or wholly online, (SMB) ($100k - $10m) n=259

SMB Landscape

Cross Border

Almost two thirds (64%) of Australian SMBs sell internationally, with around 1-in-8 (12%) planning to

sell internationally in the future

Almost two-thirds of Australian SMBs

(64%) sell online internationally, with

close to 1-in-8 (12%) planning to sell to

international customers in the future.

The key barriers to selling internationally

are the navigation of both international

fees and charges (20%) and

understanding international competition

and customer preferences (18%).

There is also a concern around

international fraud when selling outside

the domestic market (17%).

One-in-ten Australian SMBs (11%) actively

target international buyers.

Around 1-in-7 seven SMBs (14%) report

that selling to international customers has

helped grow their business

International fees and charges are hard to navigate

Understanding international competitors and customer preferences

is harder

Payment fraud and fraudulent chargebacks are harder to manage

internationally

There is little demand for our products or services internationally

Providing effective and affordable shipping options is harder than

for domestic customers

Selling to international customers has helped our business grow

I plan to sell to international customers in the future

Our business actively targets international buyers

We've had to offer new, local payment methods to sell

internationally

Australian regulation makes it harder for me to sell internationally

We do not understand the legislation and regulations in other

markets adequately to sell internationally

We do not sell internationally

64%

of Australian SMBs sell

internationally

(SMB Businesses)

Selling Locations

(SMB Businesses)

Business International Online Selling

Business Financing

MQ24. Consider if there have been times you have missed a business opportunity, or chance to expand, due to a lack of working capital. How much more revenue do you think your business could have

generated if this opportunity was not missed?

BASE: Small and Medium Businesses that partially or wholly online, (SMB) ($100k - $10m) n=259

SMB Landscape

Business Financing

More than two-thirds of SMBs (67%) report missing out on potential revenue due to insufficient

working capital, with the average revenue loss exceeding $20,000

Small businesses report that accessing

business loans can be difficult.

More than two-thirds of SMBs (67%) say

they’ve lost out on potential revenue due

to insufficient capital with more than half

(59%) reporting they’ve more than

$10,000 in revenue.

On average, Australian SMBs estimate

they have lost $22,000 of revenue as a

result of a lack of working capital.

Inability to access working capital not

only affects revenue and current

operations but may also hamper SMB’s

ability to invest in future growth

opportunities, hire new employees or

expand their services.

67%

of Australian SMBs have lost out

on revenue due to insufficient

working capital

(SMB Businesses)

59%

of Australian SMBs have lost

more than $10,000 in potential

revenue due to insufficient

working capital

$22,000

Average revenue

lost by SMBs due to lack

of working capital

Table of contents

PayPal eCommerce Index 2025

Buy Now Pay Later

CQ3a. Thinking about when you make a purchase or pay online (exc. any payments physically in-store), which of the following payment options, if any, have you used in the last 6 months? CQ4a. Thinking

about when you make a purchase or pay online, which of the following Buy Now Pay Later services, if any, have you used in the last 6 months?

BASE: All Australians 18-75 n=1022, BNPL Users n=377, Gen Z (18-27) n=89, Mills (Millennials) (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

Buy Now Pay Later

Adoption and Usage

More than a third of Australians (37%) have used Buy Now Pay Later (BNPL) at least once in the

last 6 months, an increase of 11% from last year

BNPL has become more popular in

Australia over the last 12 months.

More than 1-in-3 Australians (37%) are

now BNPL users (up 11% from 26% in

2024. BNPL is most popular with

Millennials with more than half (53%)

using it to make purchases within the last

6 months.

The research indicates Afterpay (78%) is

the most-commonly used BNPL service

(relatively steady from 80% in 2024),

ahead of PayPal Pay in 4 at 51%, up 6%

YoY (45% in 2024).

A quarter of Australian BNPL users have

used Zip (25%), while Klarna, StepPay

(CBA) and NAB Now Pay Later all

capture less than one-fifth of BNPL users

in the last 6 months (Respectively, 11%, 6%

and 3%).

(All Australians 18-75 years)

BNPL Adoption Status

37%

of Australians are BNPL

users

vs 26% last year

38%

53%

37%

20%

11%

Klarna

51%

PayPal Pay in 4

StepPay (CBA)

Afterpay

78%

25%

Zip

NAB Now Pay Later

vs 80% in 2024

vs 45% in 2024

(BNPL users)

Popular BNPL Brands by Usage

GEN Z

MILLS

GEN X

BOOMER

CQ16. How many times have you made an online purchase using a Buy Now Pay Later service in the past 3 months? CQ17. How much have you spent across all of your Buy Now Pay Later accounts in the last

3 months?

BASE: Buy Now Pay Later Users n=377; Gen Z n=39, Mills n=156, Gen X n=118, Boomer n=64

Buy Now Pay Later

Spend and Transactions

BNPL users spend an average of $309 per month on purchases using these services, making an

average of just over 3 BNPL purchases per month

Buy Now Pay Later users are spending

$309 per month on purchases using these

services.

BNPL spend is highest among consumers

under 60 years of age, with Gen X,

Millennials and Gen Z BNPL users

spending upwards of $320 per month via

BNPL services. Boomer BNPL users spend

the least through these services ($222).

Australian BNPL users make an average

of 3.1 BNPL transactions each month,

which equates to an average spend of

$101 per transaction. Gen Z ($111) leads

the way here, ahead of Millennials ($102),

with Gen X ($99) and Boomers ($93) both

spending under $100 per BNPL

transaction on average.

3.1

Average BNPL

purchases in last Month

(among BNPL users)

$101

Average spend per

transaction

$327

$332

$320

$309

$222

3.0

3.2

2.4

$111

$102

$99

$93

(BNPL users)

Average Spend per Month on BNPL Purchases

(BNPL users)

Average Spend Per Transaction

GEN Z

MILLS

GEN X

BOOMER

CQ15. Which of the following categories have/would you consider purchasing using Buy Now Pay Later services?

BASE: All Australians 18-75 n=1022

Buy Now Pay Later

Purchase Categories

Consumers are more likely to consider using BNPL for ‘big ticket items’, such as travel & tourism

(35%), and electronics & computing (29%)

Clothing and accessories remain the most

common BNPL purchases, with almost a

quarter (24%) of Australian consumers

using BNPL for this category. This is

followed by Tickets (20%), Electronics &

Computing (18%), and Health & Beauty

(15%).

Looking at potential growth categories,

many Australians are open to considering

BNPL for higher value purchases such as

Travel & Tourism (35%), Electronics &

Computing (29%) and Tickets (25%).

There is also a significant cohort who

would consider paying Government Fees

& Charges using a BNPL service (32%).

(All Australians 18-75 years)

Buy Now Pay Later Purchase Categories

NET

43%

45%

47%

35%

48%

32%

38%

40%

32%

29%

26%

40%

26%

25%

24%

20%

18%

15%

13%

12%

11%

19%

25%

29%

20%

35%

19%

25%

26%

29%

22%

21%

18%

32%

19%

Clothing & Accessories

Tickets

Electronics & Computing

Health & Beauty

Travel & Tourism

Toys & Games (physical)

Home & Garden

Luxury retail

Bill Payments

Sporting Goods

Subscriptions

Books & Magazines (physical)

Government fees and charges

Online or Digital Games

Digital or Virtual goods

TOTAL - CURRENTLY HAVE

TOTAL - WOULD CONSIDER

CQ23. If you find a product that you want on two separate sites, both of which are offering it for the same price (including any shipping costs), how likely would you be to buy the product if it...?

BASE: All Australians 18-75 n=1022, Relative uplift = Positive or negative percentage of likelihood to purchase if the service is available on that site when compared to that site without the service

Buy Now Pay Later

Impact on purchase behaviours

Australian eCommerce users are 82% more likely to purchase from a website that accepts BNPL

than one that doesn’t, with PayPal Pay in 4 driving a 119% relative uplift in purchase likelihood

The research indicates there’s a strong

benefit for businesses in offering Buy Now

Pay Later on their eCommerce platforms.

If two websites were offering a product

for the same price, Australians would be

82% more likely to buy that product from

the website that offers a BNPL option.

PayPal’s BNPL service, PayPal Pay in 4,

has an even greater impact on likelihood

to purchase as shown by the research.

Australians would be 116% more likely to

make a purchase on a website which

offers PayPal Pay in 4, than one that does

not. This is higher than another popular

BNPL option Afterpay, which drives a 91%

increase in purchase likelihood.

(All Australians 18-75 years)

Likelihood to purchase if a product is …

41%

22%

41%

22%

82%

relative uplift

Available on a site

that lets you

purchase using any

BNPL

Available on a site

that does not let

you purchase using

any BNPL

44%

20%

Available on a

site that accepts

Afterpay

Available on a

site that does not

accept Afterpay

Available on a site

that accepts

PayPal Pay in 4

Available on a site

that does not

accept PayPal Pay

in 4

91%

relative uplift

116%

relative uplift

CQ19. Thinking specifically about BNPL, which of the following, if any, do you feel apply to you?

BASE: Buy Now Pay Later users n=377, Gen Z (18-27) n=39, Millennials (28-43) n=156, Gen X (44-59) n=118, Boomer (60-75) n=64

Buy Now Pay Later

BNPL Behaviours

Almost half of Australian BNPL users (48%) say they’ve switched to using PayPal Pay in 4 because

it has no late fees

Results show nearly half of BNPL users

(48%) have switched to using PayPal Pay

in 4 due to it having no late fees, including

more than half of Gen X (53%) and

Millennial (52%) BNPL users

Almost two-thirds of BNPL users (65%)

agreed that they use these services to

spread out the cost of larger purchases or

payments, helping them more effectively

manage their finances in the current

challenging environment.

Building on this, more than half of BNPL

users agreed that it helps them manage

cost-of-living pressures (51%) and their

household budget and cashflow (51%).

When compared to other forms of credit,

half of BNPL users (50%) reported the

services have no or lower interest rates,

and nearly half (48%) agreed it provides

more flexibility than other forms of credit.

(BNPL users)

BNPL Usage

48%

of BNPL users switched to

PayPal Pay in 4 because

it has no late fees

35%

52%

53%

42%

BNPL helps me manage

cost-of-living pressures

I use Buy Now Pay Later

to help manage my

budget and cashflow

I use Buy Now Pay Later to

spread out the cost of

larger purchases or

payments

It has no, or lower,

interest rates than other

forms of credit

It provides more flexibility

than other forms of credit

65%

50%

51%

48%

(BNPL users)

Buy Now Pay Later Experience

GEN Z

MILLS

GEN X

BOOMER

MQ3. Which of the following online payment options do you offer your customers? MQ12. What are the benefits for businesses of offering Buy Now Pay Later?

BASE: Businesses that sell partially or wholly online n=413, Businesses offering Buy Now Pay Later n=110, Micro n=21, SMB n=72 and Large n=17

Buy Now Pay Later

Business BNPL Sentiment

Over a quarter of businesses (27%) offer Buy Now Pay Later as a payment option, with more than

half of those that do (53%) agreeing that it brings in new customers

Currently, over a quarter of Australian

businesses (27%) offer Buy Now, Pay

Later (BNPL) services to customers. For

over half of these businesses (53%), BNPL

is a strategy to attract new customers, a

benefit most notable among large

enterprises (71%) compared to micro

(52%) and SMBs (49%).

Additionally, 54% report that offering

BNPL meets customer expectations

around having a choice of payment

options, especially among large

enterprises (65%) and micro businesses

(62%).

Just under half (44%) of businesses

offering BNPL find that it helps bring in

younger customers, with this view more

common among large businesses (53%).

Business Buy Now Pay Later

Adoption

27%

of businesses

currently offer Buy

Now Pay Later

Business Buy Now Pay Later Benefits

(All Businesses)

(Businesses Offering Buy Now Pay Later)

54%

53%

Buy Now Pay Later

meets customer

expectations/ demands

for choice of payment

options

Buy Now Pay Later

brings in new

customers

44%

Buy Now Pay Later

brings in younger

customers

22%

28%

MICRO

SMB

LARGE

62%

49%

65%

52%

49%

71%

24%

47%

53%

MQ11. Approximately what percentage of your current online turnover, results from sales using a BNPL service? MQ13c. What impact has offering BNPL had / do you think offering BNPL would have on the

Average checkout value / conversion? MQ14. Which of the following statements regarding BNPL do you agree with?

BASE: Businesses offering Buy Now Pay Later n=110, Micro n=21, SMB n=72 and Large n=17

Business BNPL Impact

Implementing BNPL delivers double-digital increases in both average order value and conversion

rates, with businesses that offer BNPL receiving a quarter of their revenue through these services

Transactions using Buy Now, Pay Later

(BNPL) services account for a quarter

(25%) of online turnover among

businesses that offer BNPL services.

More than two-thirds of businesses (68%)

offering BNPL services report seeing an

increase in average order value (AOV).

On average the increase in AOV is 15%.

Similarly, 65% of businesses providing

BNPL services report an increase in

conversion rates, with the average uplift

on conversion being 11% as a result of

offering a BNPL payment option.

Additionally, 39% of businesses that offer

BNPL agree it enhances their

competitiveness with larger companies—a

benefit particularly noted among large

enterprises (65%).

More than a third of businesses (35%)

have observed that actively promoting

BNPL services on their website also boosts

customer conversion rates.

(Businesses Offering Buy Now Pay Later)

Business Buy Now Pay

Later Impact

Average Order

Value increase

43%

75%

71%

38%

74%

65%

68%

65%

have seen an increase on the

average conversion

have seen an increase on the

average order value

Average Conversion

Increase

25%

39%

of online turnover

comes from Buy Now

Pay Later services

Helps my business

compete with

bigger businesses

20%

26%

33%

35%

65%

MICRO

SMB

LARGE

15%

11%

35%

Promoting BNPL on

our website helps

drive increased

customer conversion

19%

38%

47%

Table of contents

PayPal eCommerce Index 2025

Circular Economy

(All Australians 18-75 years)

Secondhand popularity

CQ35. Why do you buy secondhand?

BASE: All Australians 18-75 n=1022, Gen Z (18-27) n=89, Millennials (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

Circular Economy

Secondhand Shopping

Near 9-in-10 Australians (87%) have bought secondhand products, typically looking to save

money (64%) and give products a second life (40%)

Nearly 9-in-10 (87%) of Australians have

bought secondhand. While this is led by

Gen Z (94%), it’s also a common

behaviour across other generations.

The top reasons that drive Australians to

buy secondhand are to:

•

Save money (64%)

•

Give products a second life (40%)

•

Save more than 50% (37%)

•

Access higher quality items at a lower

cost (36%)

We can see a greater emphasis among

Millennials on saving money (72% vs.

64% overall), likely reflecting the cost-of-

living pressures they are facing.

87%

of Australians have

bought secondhand

64%

40%

To save money

To give products a

second life

37%

36%

I can save 50% or

more when

compared to the

price of new items

Access to higher

quality items at a

lower cost

94%

92%

86%

80%

61%

72%

62%

58%

36%

40%

41%

39%

44%

35%

29%

43%

38%

28%

(All Australians 18-75 years)

Reasons for buying secondhand

GEN Z

MILLS

GEN X

BOOMER

(All Australians 18-75 years)

Purchasing secondhand

CQ36. Which of the following have you bought, or would you consider buying secondhand?

BASE: All Australians 18-75 n=1022, Gen Z (18-27) n=89, Millennials (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

Circular Economy

Buying Secondhand

Everyday items such as books, DVDs, CDs and vinyl (51%) are the most popular secondhand items,

followed by furniture (45%), clothing (41%), and homewares (31%)

Australians are open to buying a wide

range of items secondhand, with over half

(51%) having bought books, DVDs, CDs

and vinyl, with a further 33% claiming

they would consider buying these

products secondhand.

Moving down the list, we can see many

Australians have bought secondhand

items for their homes, with almost half

(45%) having bought furniture, and a

third (31%) having bought homewares.

While not many Australians have bought

gardening or other tools (23%) and sports

or exercise equipment (23%), there is a

high level of consideration when looking

to buy those items secondhand (53% and

49% respectively)

Additionally, while not many Australians

have bought luxury items such as designer

bags or accessories (16%) or jewellery or

watches (17%), around 2-in-5 Australians

would consider buying these items

secondhand.

51%

45%

23%

30%

41%

23%

31%

16%

17%

26%

23%

33%

38%

53%

43%

30%

49%

38%

43%

42%

32%

30%

14%

Books, DVDs, CDs, Vinyl

Furniture

Gardening or other tools

Collectables

Clothes and other fashion items

Sport or exercise equipment

Homewares

Designer bags, accessories

Jewellery and/or Watches

Technology

Toys and baby or kids' items

Appliances

Perfume or beauty items

NET

84%

83%

75%

73%

71%

69%

59%

57%

56%

53%

19%

TOTAL - CURRENTLY HAVE

TOTAL - WOULD CONSIDER

(All Australians 18-75 years)

Secondhand popularity

CQ34. If you sold all the unused and unwanted items in your household, how much money do you estimate you would make?

BASE: All Australians 18-75 n=1022, Gen Z (18-27) n=89, Millennials (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

Circular Economy

Unwanted Item Value

Most Australians (83%) have unused items they are willing to sell; on average, Australian

households estimate they could make $1,468 by selling their unwanted items

Around 8-in-10 Australian households

(83%) say they have unused or unwanted

items that they could sell. This is largely

consistent across generations – while

Boomers (72%) are slightly lower.

Looking specifically at the value of the

items per household they could sell, Gen X

claims an average of $1,766 of unwanted

goods, with Millennials not too far behind

at $1,586.

Gen Z is the only group to have less than

$1,000 of unneeded goods, with an

average value across this generation of

$872.

83%

of Australians have

unused or unwanted

items in their household

they are willing to sell

85%

88%

87%

72%

(All Australians 18-75 years)

Secondhand items value

$1,468

$1,586

$872

$1,766

$1,365

GEN Z

MILLS

GEN X

BOOMER

45%

49%

There is too much waste in our

society and we should all look

to resell and reuse

Secondhand attitudes

CQ33. Which of these statements do you agree with in relation to buying or selling goods?

BASE: All Australians 18-75 n=1022, Gen Z (18-27) n=89, Millennials (28-43) n=298, Gen X (44-59) n=313, Boomer (60-75) n=322

Circular Economy

Secondhand Shopping Behaviours

Almost half of Australians (49%) believe there’s too much waste in our society and that we should

look to resell and reuse, with a similar proportion (45%) preferring quality used items to lower-

quality new ones

Australians see the potential for

secondhand shopping to help them live a

more sustainable life, with half of

Australians (49%) thinking there is too

much waste in society and we should look

to resell and reuse. Similarly, close to half

(45%) would rather have a quality

secondhand item than a low-quality,

poorly made new item.

Importantly, this is not just a stated

attitude, with almost half of Australians

(45%) putting their money where their

mouth is, having bought something

secondhand within the last year.

45%

I'd rather have a quality

secondhand item than a low-

quality, poorly made new

item

I have bought something

secondhand within the last

year

46%

41%

50%

45%

46%

48%

46%

39%

43%

46%

52%

51%

(All Australians 18-75 years)

GEN Z

MILLS

GEN X

BOOMER

About PayPal

For over 25 years, PayPal has been transforming

commerce for businesses worldwide. By providing

innovative, secure, and personalised solutions for

payments, sales, and shopping, PayPal empowers

businesses across nearly 200 markets to grow and

succeed in the global economy.

For many businesses in Australia, PayPal is their end-to-

end payments partner, helping to deliver growth and

efficiencies. With just one integration, PayPal offers your

customers the payment methods they’re looking for

including PayPal, PayPal Pay in 4, credit and debit cards,

and Apple Pay

and Google Pay

To learn more about how PayPal can help you future-

proof and simplify your business, visit:

paypal.com/au/business

The content of this report is provided for informational purposes only. You should always obtain independent business,

tax, financial, and legal advice before making any business decision.

PayPal eCommerce Index Report

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