Gen Z steer clear of credit cards, opt for debit in online shopping

Young Australians are more financially cautious than expected, new research from BigCommerce has revealed

The 2025 ANZ Online Shopping Report shows over half of 18 to 24-year-olds prefer to use debit cards when shopping online, more than any other age group.

Visa credit card use across Australia and New Zealand has declined 8% over the past two years.

Debit card usage has remained steady, while PayPal continues to be popular with older consumers. Afterpay use is growing fastest among 25 to 34-year-olds.

Free shipping remains a key driver of online purchases, with 86% of shoppers selecting it as their preferred loyalty reward. However, delivery price tolerance is shifting.

Shoppers are now willing to pay up to $18.73 for faster delivery of small items, while acceptable fees for larger items have dropped from $119.49 in 2023 to $73.98 in 2025.

High delivery costs continue to impact purchase decisions, with 97% of respondents saying they would abandon a cart due to shipping fees.

Reviews remain a critical trust factor. While a third of shoppers don’t read reviews before buying, 77% say they would hesitate to purchase if no reviews are available. Detailed reviews influence 70% of respondents the most.

Demand for virtual try-ons and customer support chatbots is declining, while practical tools like price trackers (59%) and personalised recommendations (49%) are seen as the most useful features. The findings reflect changing shopper expectations amid ongoing cost-of-living pressures.

“The report shows that today’s shoppers expect thoughtful, value-driven experiences at every stage of the journey,” Shannon Ingrey, Vice President and General Manager, APAC at BigCommerce, said.

“Younger consumers in particular are demonstrating a strong desire for control and value. Whether that is through choosing debit over credit, expecting faster delivery, or trusting detailed product reviews, they are shopping with intention."

“Retailers who understand and respond to these evolving behaviours will be best positioned to build lasting customer relationships.”

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