Applause, the world leader in digital quality and crowdsourced testing, has released the results of its sixth annual survey on retail trends over the festive shopping period. The findings show a consumer willingness to leverage AI (e.g., search, chatbots and agents) for shopping, with 60% intent on using AI to find deals, while another 56% will ask AI to make gift recommendations. 69% of consumers also said they would let an AI agent do their shopping for them and overwhelming 94% might try one. The results contrast with AI investment, as only half of organisations are developing shopping or purchasing agents.
Social commerce continues to thrive with 57% of consumers stating they will shop via social platforms to search for goods, deals and recommendations. 68% of shoppers prefer to use Instagram for this, followed by Facebook (63%) and TikTok (53%). The study also revealed that 78% of consumers are turning to buy-now-pay-later (BNPL) payment options like PayPal, Klarna and Affirm. Key factors for budget-conscious shoppers when choosing a BNPL provider include - interest rates and fee structures (43%), repayment timeline (36%), credit limit (15%) and refund policies (6%).
The Applause Holiday Shopping & Payments Survey 2025 canvassed 3,300 consumers and software professionals to gauge the consumer appetite for AI-assisted shopping and other trends, and evaluate digital retail strategies.
The study revealed a healthy appetite for high street and online shopping. A staggering 90% of shoppers will be buying gifts in-store, with 36% willing to spend more than last year. Similarly, 92% will also be shopping online with 41% set to spend more this year. However, returns are becoming the norm with 33% admitting they are likely to return holiday gifts or purchases. When it comes to payment options, online retailers need to offer a seamless checkout experience, as shoppers will only try a purchase twice before abandoning their cart if they encounter an issue. And, 78% of shoppers will abandon their purchase if the app or website doesn't accept their preferred payment method. Of the 40% who adopted new payment methods, 54% started using digital wallets which continue to rise in popularity.
Shoppers also judge retailers on the quality of their omnichannel. 51% of shoppers are likely to leave a brand that has a poor omnichannel experience. Favourite omnichannel experiences include buy online/pick up in store (BOPIS) (78%), delivery lockers (41%) and curbside pickup (41%).
On the selling side, the study found that brands are asking developers and QA professionals to prioritise localisation in global markets to drive retention and loyalty. 68% say their company's websites and apps are available in multiple languages. Another 67% have adjusted customer journey/checkout flows to align with norms in different countries and cultures.
"Good news for retailers - consumers are planning a healthy mix of in-person and online shopping over the Black Friday/Cyber Monday weekend and throughout the holiday season," said Luke Damian, Chief Growth Officer, Applause [1]. "But, it's clear the industry needs to adapt to a world where AI is more and more involved in the customer journey. Despite continuing concerns around AI accuracy and bias, people are more than willing to let an AI agent help with their holiday shopping. This reflects the explosive growth potential of AI across markets and increasing quality that is enabling agentic AI to enter the consumer equation. It is crucial for these agents to be rigorously tested to alleviate the risks - that means human-led fine-tuning, red teaming and more."
"Flexibility and quality are essential factors for driving customer retention and loyalty," Damian continued. "This year's results show growing interest in convenient payment and omnichannel experiences, including buy now, pay later and a range of pickup and delivery options. These are complex processes that must run smoothly to avoid cart abandonment and customer churn. Incorporating regional payment preferences and UX factors into testing will be a game changer for retailers competing for holiday shoppers this season"