Global inspiration, local confidence: The new habits shaping Australia’s holiday shoppers

12/23/2025

Total retail spending across Australia increased by 5% year on year in the seven weeks leading up to Christmas, while spending in Departmental and Discount stores increased by 16.1%
AI is becoming a key shopping tool this year, with 47% of Australians using AI for gift ideas, research or planning
Payment safety fears rise sharply, with 76% of Australians worried about more sophisticated scams during peak shopping months

Australians are heading into the festive season with a global mindset and resilient local spending patterns, according to new insights from Visa’s Global Spending Shift and the annual Visa Consulting & Analytics (VCA) Retail Spend Monitor. Together, the reports paint a picture of a modern holiday shopper shaped by international choice, digital innovation and secure payment experiences.

Visa’s Global Spending Shift highlights how Australian expectations around where and how they shop are evolving, while the VCA Retail Spend Monitor - which analyses transactions for a seven-week period beginning 1 November - shows those behaviours translating into solid retail performance during the peak Christmas period.

Reshaping Christmas spending patterns

Retail spending over the seven-week period beginning 1 November increased by 5% year on year, with indicators that shoppers are increasingly purchasing Christmas gifts earlier.

David Peacock, Head of Visa Consulting & Analytics for Visa Oceania, said: “Sales continue to have a material impact on how Australians shop for Christmas, incentivising earlier gift purchases. There has also been a general increase in the growth of retail spend in Australia, with resilient employment supporting higher-than-expected spending.”

While nearly 58% of total spending was made in store, online sales surged by 15%. Two of the highest growth categories were Departmental and Discount Stores and Electronics, where shoppers spent 16.1% and 10% more, respectively.

“Whether shoppers were upgrading their tech, refreshing their closets, or stocking up at one‑stop shops, retailers delivered seamless shopping experiences both in stores and online,” said Wayne Best, chief economist at Visa. “This season also marked a turning point, with artificial intelligence shaping how people discover products, compare prices, and interact with offers. This led to a more informed, more intentional consumer, ensuring they could stretch their discretionary spending.”

Australians shop globally – and spend at home

Australia has emerged as one of the world’s most active cross-border shopping nations, with 71% of Australians buying from overseas retailers according to the Visa’s Global Spending Shift report - well above the global average of 59%. Seeking the best prices and unique products, Australians are also looking for ways to stay connected with family and friends abroad.

This positive outlook is reflected domestically, with VCA’s Retail Spend Monitor showing total retail spending across Australia increased by 5% year on year, indicating resilient consumer confidence over the holiday period.

That focus on confidence is mirrored in broader concerns around security. According to Visa’s Global Spending Shift, over three quarters of Australians (76%) cite they worry about more sophisticated scams during peak shopping months, highlighting the heightened importance of payment safety during the festive season.

AI-Driven, Tap-and-Go Christmas Shopping Raises the Stakes on Trust

Australians are embracing technologies that make festive shopping faster and more efficient, with almost half of Australians (47%) say they have used AI this year for gift ideas, research or planning, helping them personalise choices and compare value. However, this growing reliance on AI comes with caution, with 65% of shoppers remaining concerned about how their data is used – underscoring the need for transparency as digital tools become more embedded in the path to purchase.

At the same time, four in five shoppers (80%) want frictionless checkout experiences, while nearly half (47%) already use biometric authentication to verify payments – placing trust firmly at the centre of the holiday shopping experience.

Alan Machet, Visa’s Group Country Manager for Oceania, said Australians are entering the holidays with clear expectations shaped by global choice and modern payment behaviours.

“Simple, smart and safe – that’s what Australians expect from holiday spending. From tapping a phone in store to shopping in global marketplaces, people want confidence that every payment is secure. That trust is what keeps everyday spending moving.”

About the Visa Global Spending Shift Report

This report was conducted between 14 October 2025 to 28 October 2025, surveying a sample of 1,000 adults in each market. The interviews were conducted online, and the data were weighted based on gender, education attainment, age, and race. Results from the full report have a margin of error of plus or minus 1 percentage point.

About the VCA Retail Spend Monitor

Visa’s Retail Spend Monitor is powered by Visa Consulting & Analytics, the payment advisory arm for Visa, and reports on national retail sales across all payment types (excluding cash). These figures are not adjusted for inflation. This is constructed using a subset of depersonalised transactional data pulled from Visa’s payments network, which is then normalised and scaled to market using third-party public sources such as the Australian Bureau of Statistics (ABS) and the Reserve Bank of Australia (RBA).

VCA is comprised of a global network of thousands of consultants, data scientists, and product experts from around the world. Their expertise combined with the power of VisaNet data – which represents over 329 billion transactions a year – helps clients identify trends and make data-driven decisions. In the last year, VCA delivered nearly 4,500 consulting engagements that helped clients realize an estimated $6.5 billion in incremental revenue as a result.

The views, opinions, and/or estimates, as the case may be (“views”), expressed herein are those of the Visa Consulting & Analytics team and do not necessarily reflect those of Visa executive management and other Visa employees and affiliates. The Visa Retail Spend Monitor is intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial, or other advice and do not in any way reflect actual or forecasted Visa operational or financial performance. Visa neither makes any warranty or representation as to the completeness or accuracy of the views contained herein, nor assumes any liability or responsibility that may result from reliance on such views. These views are often based on current market conditions and are subject to change without notice.

About Visa

Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, sellers, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.