Australians today expect seamless, convenient and secure payment options – but the specifics of these expectations evolve every year. For small and medium-sized businesses (SMBs), staying competitive means adapting to these shifting demands and ensuring their online checkouts accommodate current payment preferences.*
Nearly 4-in-5 Australians (78%) still abandon shopping carts because of security concerns (44%), preferred payment methods not being available (38%), and the purchase or payment being too difficult to complete (32%). So, it's clear that offering the right payment options can make or break a sale.
Get to know the payment trends shaping the way consumers pay in 2025.
PayPal’s latest eCommerce Index found that smartphones are now the most preferred device for online shopping (47%), a 4% increase from last year. Australians are embracing the convenience of shopping and paying directly on their mobile.
Digital wallets are an easy way to pay online, particularly on mobile, so it’s not surprising that their use is also on the rise. PayPal is the most used digital wallet for online purchases (64%), with Apple Pay® (29%) and Google Pay™ (20%) also popular choices. Offering all three leading digital wallets into your checkout will enable you to cater to diverse payment preferences and help reduce cart abandonment.
Buy Now, Pay Later (BNPL) solutions are gaining traction, with 37% of Australians using them for online purchases, up 11% year-on-year. Clothing and accessories (65%) and event tickets (54%) are the two most popular categories for BNPL purchases among BNPL users.
By accepting BNPL payment methods like PayPal Pay in 4, Australian SMBs can keep in step with the latest in consumer payment preferences. Benefits include unlocking new revenue streams and enhanced customer satisfaction too. Australian businesses offering BNPL have seen a notable impact on sales and customer engagement – 75% of SMBs say BNPL has increased their average order value (AOV), while 74% say it has improved conversion.
Security is the leading reason for cart abandonment, with 68% of Australians indicating they are less likely to purchase if they have trust or security concerns at checkout. Shoppers expect robust measures to protect their financial information, including encrypted transactions and fraud prevention tools.
For SMBs, offering secure payment options isn’t just a necessity – it’s a competitive advantage. Prioritising security at checkout can build customer confidence, reduce cart abandonment and foster long-term trust.
PayPal Complete Payments is the all-in-one solution that addresses Australia’s latest payment expectations for the future. Designed for SMBs, the platform can help elevate your business’ payment offerings in several key ways:
As consumer payment preferences continue to evolve, SMBs that adapt and invest in robust payment solutions will stand out in a competitive market. By leveraging tools like PayPal Complete Payments, you can meet your customers’ expectations for convenience, security and flexibility while driving growth and building trust.
Get more insights into consumer expectations and the challenges facing Australian businesses by downloading your copy of the PayPal eCommerce Index 2025 report.
In partnership with three expert business owners, the PayPal Bootcamp includes practical checklists and a short video loaded with tips to help take your business to the next level.
We'll use cookies to improve and customise your experience if you continue to browse. Is it OK if we also use cookies to show you personalised ads? Learn more and manage your cookies