The eTail Australia Conference 2025, held from February 25-26 at the Sheraton Grand Sydney Hyde Park, convened retail leaders, economists, and technology experts to explore the shifting dynamics of Australian ecommerce. With a robust lineup of keynotes and panels, the event tackled economic challenges, the fusion of digital and physical retail, and the transformative yet debated role of artificial intelligence (AI). The conference offered a wealth of insights into how economic trends, consumer expectations, and technological advancements are reshaping transaction ecosystems. Speakers including Stephen Walters, Jo Hall, and Eric Bruzek’s AI panellists provided compelling perspectives that resonate deeply with payment professionals navigating this evolving landscape. 

Navigating Economic Headwinds with an Eye on Rebound: Stephen Walters’ Outlook 

The conference opened with Stephen Walters, Chief Economist of the Business Council of Australia (BCA), delivering a keynote titled ‘Diagnosing Australia’s Economic Health’. Walters outlined a challenging economic climate marked by persistent inflation, rising interest rates, and a softening housing market, all of which are straining consumer confidence and discretionary spending. He noted that inflation continues to impact consumer purchasing power. “81% nominated cost of living,” he revealed from a recent survey, with consumers ”feeling a bit cranky” after the 13 interest rate hikes since 2022.

According to Walters, for “seven quarters in a row, the GDP growth in Australia has gone backwards once you take out population growth… we’ve never had that” citing data going back to 1959. Walters pointed out that living standards have slumped, with real disposable income having “gone backwards” while other countries have largely recovered in the post COVID years.

However, Walters struck a cautiously optimistic chord, suggesting a consumer rebound may be on the horizon. While current conditions remain tough, projections indicate that easing inflation and stabilising interest rates could soon revive spending. Growth is forecast to rise from 1.5% to 2.5% in 2025, driven by private sector momentum with a resilient labour market (4.1% unemployment).  He urged retailers to prepare now to capitalise on this potential uptick.  

Reimagining Retail with Hybrid Shopping 

Jo Hall, a retail veteran and former Chief Commercial Officer at Toys’R’Us, delivered a standout keynote ‘Reimagining Retail’, urging a bold embrace of digital-physical integration in retailing. According to Hall the days of siloed retail channels are fading, giving way to “hybrid shopping”, a seamless omnichannel experience where consumers “don’t really see the difference between the two.”

Hall dove deep into the technological drivers of this shift. She highlighted AR-powered virtual try-on tools, which allow customers to “test” clothing or cosmetics online before buying, effectively bridging the digital-physical gap. Such innovations, she argued, elevate the shopping experience and boost conversion rates. Seamless checkout systems paired with AR tools could streamline transactions, reducing cart abandonment and enhancing trust. Citing McKinsey, she further noted a 40% revenue boost is possible with personalisation via AI and AR, exemplified by innovations like Sephora’s AR makeovers, next-generation trading cards using QR codes to enhance collectability, and Louis Vuitton’s use of QR codes to combat counterfeiting.

Drawing from her experience with Asian markets she showcased how advanced transaction ecosystems are redefining retail. 

• Hema’s Cashless Revolution: Hall highlighted Hema, Alibaba’s supermarket chain, where the store features “live seafood that is cooked on-site” and a conveyor belt system for efficient product circulation. There are no checkouts, just mobile payments. “Everything is paid by your mobile phone” she explained, underscoring a seamless, app-driven transaction model. Hema rose to China’s fifth-largest grocer in just eight years. For Australia, where mobile wallets lag behind China’s WeChat Pay, this signals a push for integrated, real-time payment systems to eliminate checkout friction. 

• Meituan’s 30-Minute Delivery: Hall praised Meituan’s delivery prowess, a $80 billion delivery services business in China which has revolutionised last-mile delivery with a 30-minute KPI. Instant payment settlement is key; customers pay upfront, and merchants get funds instantly.  

• Social Commerce Boom: Social commerce in China, with WeChat and Douyin (TikTok), alone representing a $100-150 billion business (12% of China’s retail sales), is influencing global retail trends in blending content and instant purchasing. She noted that Gen Z consumers have high expectations, lack of brand loyalty, and have a strong focus on sustainability. Payments must embed into platforms like TikTok, enabling one-tap checkouts for impulse buys.

Hall also addressed sustainability, a growing consumer priority. She urged retailers to adopt eco-friendly practices—reducing packaging waste, and sourcing sustainable materials—noting that such moves build customer loyalty and competitive edge. Hall’s call to “stay agile and innovative” resonates with payment professionals, who must adapt to these multifaceted shifts to remain relevant. China’s cashless and social commerce models are a call to action.  “It’s coming,” she warned, despite Australia’s legal hurdles, urging retailers to prepare. 

AI in Retail: Game-Changer or Overhype?  

Eric Bruzek (Amerinda) moderated a dynamic keynote panel, ‘AI in Retail: Disruption or Hype?’, featuring Florian Pasquier (CARMA), Marcio Oliveira da Silveira, Mozi Zhang (Urban Sales), and Mal Chia (Ecom Nation), which dissected AI’s role in retail. The panelists agreed AI is transforming the industry—from personalised customer experiences to automated supply chains—but tempered enthusiasm with realism.  

Florian framed AI’s current state as being in “a stage of user acceptance testing,” suggesting it’s transformative yet still maturing. He highlighted the human element, advocating that AI augment rather than replace human capabilities. Mozi echoed this, envisioning AI shifting our values from scarcity to abundance, enabling us to focus more on “what and why” over “how.”  Mal shifted focus to workforce implications, stressing upskilling to harness AI’s potential. He highlighted readily available practical AI agents, as seen in tools like Shopify Magic and Gorgias’ assistant, freeing human capacity for more complex tasks. 

Marcio tempered the optimism, warning, “If you put the cart ahead of the horses, things will go wrong,” stressing human oversight and governance. Ethical concerns such as privacy, bias, and AI-generated content’s authenticity loomed large, with Mal advocating regulation to maintain trust. Marcio noted that while AI’s potential is vast, integration remains a hurdle for some retailers due to complex systems and the ability to implement throughout organisations. Mozi reinforced this reminding us that AI is only as good as the data it’s trained on, urging for robust data governance.  

Throughout the conference there were various examples of AI in practice: 

• New Aim is using AI for customer support and reduced their ecommerce logistics costs by 30-40% through horizontal optimisation.  
• Desiderate uses virtual try-ons for online jewellery conversions. 

Bruzek later presented a case study for a leading global fashion retailer, illustrating AI’s practical impact. The retailer used AI for a personalised styling assistant, providing outfit recommendations by leveraging the latest trends, user behaviour and individual preferences. It increased ecommerce platform usage and sales conversions, reduced returns by 28% and reduced stockouts and overstocks. A customer-centric model – offering omnichannel personalised recommendations whilst applying customer feedback – offers a blueprint for achieving customer service and tangible business outcomes. 

Payments Provide Backbone in Digital Retailing 

eTail Australia 2025 painted a multifaceted picture for the payments industry. Walters cautious optimism of economic recovery tempered by risks suggests a rebound in retail. With the fast pace of technological change, this likely translates to investment in digital transformation. 

Hall’s vision of digital-physical fusion and social commerce calls for frictionless, embedded payment systems, from cashless supermarkets to instant social checkouts, with sustainability as a competitive edge. 

AI developments also place payments at a crossroads. AI-driven security, personalisation, and efficiency are attainable but require clean data, ethical practices, and strategic focus over hype. As retailers evolve, payments providers must deliver secure, scalable solutions to power this transformation. 

Share your thoughts with ross.mcintyre@paymentsconsulting.com

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Payments Consulting Network was a media partner of eTail Australia 2025 which was recently held in Sydney. We are also supporting eTail Asia 2025 happening on May 14-15 at Equarius Hotel, Sentosa, Singapore. Check out the latest agenda for this upcoming event. Register now!

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Author: Ross McIntyre, Associate, Australia, Payments Consulting Network

Ross McIntyre has over 15 years of experience in data science, financial analysis, and the preparation of business cases, proposals, and strategies. His experience includes business case lead on several end-to-end supply chain reviews, commercial lead on high-level pricing strategies, profit worker design for retail, and business case support for large corporate deals.

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