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AI-shy Aussies love in-store shopping and brands with purpose
Australia stands out as a unique and sometimes surprising retail market, and new Adyen research reveals three critical trends shaping the local landscape — trends that retailers can’t afford to ignore.
In terms of progress, many Australians are embracing brands that demonstrate purpose. However, while digital dominates, in-store shopping remains remarkably resilient, particularly among older Australians. And while global momentum around AI seems unstoppable, Australian shoppers are more cautious about embracing it than their international counterparts.
For retailers, these insights aren’t just interesting. They’re essential. Successfully navigating the Australian market means finding the right balance between innovation and trust, leveraging AI carefully, while demonstrating purpose and preserving the physical retail moments that matter most. Understanding and responding to these consumer behaviors will be key to staying relevant, competitive, and customer-centric in this discerning retail environment.
AI in retail: Why Australian shoppers are raising red flags
AI is rapidly reshaping the retail experience, from product recommendations and fraud prevention to conversational commerce. But while AI adoption is surging globally, Australian shoppers are emerging as the most skeptical audience in the world.
In fact, according to recent research, 35% of Australian consumers say AI makes them more worried about fraud and scams — more than any other market globally. Meanwhile, 43% say they find AI-driven personalisation invasive, the highest rate in the Asia-Pacific region. While many consumers globally express mixed feelings about AI, Australia leads in discomfort.
This presents a clear challenge for retailers. On one hand, AI is quickly becoming a cornerstone of modern commerce. In 2025, 56% of retailers globally plan to invest in AI to drive sales, personalise marketing, prevent fraud, and better understand customer behavior. But on the other hand, Australia’s cautious sentiment highlights the risk of overstepping consumer boundaries.
For retailers operating in Australia, this signals the need for a nuanced approach. Simply adopting AI isn’t enough; brands must implement it transparently and ethically, with clear communication about how data is used and why, with a goal of enhancing customer experience without eroding trust. That could mean giving consumers more control over personalisation settings, or using payment data (rather than behavioral tracking) to tailor offers without feeling invasive.
For example, Adyen AI automates checkout decisions that boost conversion, prevent fraud, and reduce cost. We look at the complete journey of a transaction as a connected process.
Social purpose is important to a large share of shoppers
Australians have high expectations of retailers. A solid 46% say they’d be more loyal to a retailer that demonstrates a strong social purpose and/or contributes to charitable causes. However, ethically sourced or locally produced products often come with a higher price. So, are shoppers willing to pay more?
The answer is a little less enthusiastic. Just over a third (37%) of shoppers are willing to pay a premium for ethically sourced items.
With this in mind, how can retailers demonstrate social purpose, without alienating the two thirds of shoppers who may not want to pay more?
One answer lies in supporting shoppers in their giving. 72% of consumers give to charity, and to build deeper connections with these shoppers through purpose, retailers can offer ways for shoppers to support the causes they care about.
Solutions such as Adyen Giving allow retailers to embed donation options, sustainability pledges, or local impact initiatives right at checkout, where intent to buy is strongest. This helps to convert socially-conscious customers into loyal advocates, and is an opportunity to demonstrate support for values such as sustainability, inclusion, and social impact. For example, in Australia, Grill’d offers Adyen Giving across channels for its Local Matters initiative to donate to community organisations and projects.
Australians still love the physical store - and expect more from it
Australian shoppers show a stronger-than-average preference for in-store shopping. While 46% of global consumers say it’s their preferred channel, the number is even higher locally — reinforcing the value of bricks-and-mortar retail in Australia. Physical stores remain central not just to purchases, but to brand connection and customer experience.
This creates a clear opportunity for local differentiation. Retailers that go beyond transactions — offering curated experiences, personalised service, or faster, more flexible payments — can stand out. Half of Australians say touching and feeling products is their top reason for shopping in-store, and 30% want the experience to be more interesting.
Australians also lead in self-checkout adoption, with 61% using it in the past year. This highlights a growing demand for speed and convenience alongside hands-on experiences. By investing in digital enhancements like Tap to Pay, AR, or app integrations, retailers can turn stores into brand and experience hubs.
The takeaway: physical stores are here to stay — but expectations are rising. Retailers who evolve with them will be best placed to drive engagement, loyalty, and growth.
True Alliance transitioned to Adyen in 2022, with local acquiring, one contact, and one contract with global tiered pricing for all regions of operation across Australia and New Zealand. The decision was led by Adyen’s leading Unified Commerce solution and single financial technology platform, along with the RevenueProtect fraud engine, 3DS2 authentication, and cutting-edge POS terminals across all 100 stores.
Find out more
From AI-driven experiences to immersive in-store environments and socially conscious retailers, Australian shoppers have their own unique preferences.
Read the Adyen Index: Australian Retail Report to explore the latest trends, data, and strategies shaping the future of retail in Australia and beyond.