Commerce, an open, intelligent ecosystem of technology solutions that empower businesses to unlock data potential and deliver personalised experiences at scale, has partnered with PayPal Australia to release the 2025 Digital Payments Report, revealing a decisive turn in how Australians choose to pay online.
The report shows that buy now pay later (BNPL) is now used by more than one in three Australian shoppers, marking a significant shift in payment behaviour. Uptake is strongest among Gen Z and Millennials, who are using flexible payment options to budget or manage one-off expenses such as weddings, birthdays or moving house—reflecting a broader trend toward financial control and flexibility over traditional credit use.
PayPal ‘Pay in 4’ continues to grow in popularity, used by half (50 per cent) of all BNPL shoppers—a 20 per cent increase since 2023. The growth is being driven by Gen Z and Millennials, with more than half using BNPL to budget or manage one-off expenses.
“Younger Australians are reshaping the path to purchase,” said Shannon Ingrey, vice president and general manager for APAC at Commerce. “They’re more deliberate, financially cautious, and value flexibility over credit. For retailers, this means success in 2026 won’t only depend on what they sell, but how they help customers pay and feel in control while doing it.”
The findings highlight how payment diversity is increasingly shaping consumer decisions at the checkout. According to the report, 75 per cent of Australian shoppers say they are likely to complete a purchase on a site that accepts PayPal, compared to just 16 per cent when it’s not offered, showing how trusted and flexible payment options have become key drivers of conversion and loyalty.
“Consumers today expect transparency, trust and choice every time they check out,” said Simon Banks, managing director, PayPal Australia. “As preferences shift toward digital wallets and BNPL, checkout has become the true moment of loyalty. Retailers that make payments fast, secure and flexible are the ones converting intent into long-term relationships.”
