Adyen report finds Singapore shoppers split by age

Adyen has published its Adyen Index 2026 Singapore Retail Report, highlighting a divide in spending and shopping behaviour across generations in Singapore.

The findings show that 42% of Singaporeans are spending more than they were a year ago, while 25% are spending less. Among those spending more, 62% cited rising living costs and changes in interest rates, 36% pointed to changes in needs or priorities, and 20% cited economic uncertainty.

Younger shoppers were more likely to report higher spending. Half of Gen Z respondents and 51% of Millennials said they were spending more than a year ago, compared with 36% of Gen X and 29% of Baby Boomers.

Spending through social media shopping channels also varied by age group. Gen Z respondents spent an average of S$104 per purchase through social commerce, while Millennials spent S$106, compared with S$80 for Gen X and S$62 for Baby Boomers.

The data also suggested different motivations behind higher spending. Some 28% of Gen Z respondents and 17% of Millennials said they were "choosing to enjoy life more", compared with 6% of Baby Boomers.

AI shopping

Use of artificial intelligence in shopping was widespread across the survey, with 72% of Singaporeans saying they have used AI assistants to help with shopping.

Among those using AI-assisted shopping tools, 72% said the technology helped them cut through online noise, 68% said it inspired them faster, and 66% said they wanted to use it to find unique brands and shopping experiences.

The trend was strongest among younger consumers. The report found that 85% of Gen Z and 80% of Millennials use AI assistants for shopping.

Consumer expectations around the shopping process also reflected demand for smoother links between digital and physical retail. Nearly half of respondents, or 46%, said they wanted a seamless shopping experience across online and in-store channels, while 43% wanted real-time product visibility and 38% wanted technology that makes shopping faster and more convenient.

Ben Wong, General Manager of Southeast Asia and Hong Kong at Adyen, said the results point to a market that is becoming more segmented.

"Singapore consumers are responding to the same economic conditions in different ways, and that is creating a more segmented retail environment," Wong said.

"To navigate this fast-changing segmentation, the focus must shift from simply accumulating data to ensuring data integrity. Clean data, paired with the right platform and expertise, can retailers unlock actionable insights at a close to real-time speed."

Retail response

On the retail side, the study found that 99% of surveyed enterprise retailers in Singapore have already begun using AI in some form. Still, 95% said they face barriers to wider adoption.

The most common uses of AI were customer service and support at 46%, marketing and promotions at 45%, customer experience at 43%, and operations and efficiency at 42%.

Retailers in Singapore were more likely to identify practical implementation issues than concerns about losing direct customer relationships. The main barriers were competing priorities or limited resources at 39%, difficulty integrating AI into existing systems at 38%, and a lack of internal AI skills or expertise at 35%.

The report also pointed to payment performance as a significant issue for customer trust. When consumers encounter a payment error at checkout, 59% said it negatively affects their perception of the brand.

About 24% said their trust drops significantly after a payment error. Another 20% said they would abandon the purchase and avoid the retailer in future, while 15% said they would switch to a competitor.

Wong said the findings show that retailers still need to get the basics right as they add more AI tools.

"AI in payments has the potential to be a force multiplier for the business. However, research continues to show that fundamentals must always be in place, namely that customers want reliable, secure payment experiences, and that retailers can protect conversion and build loyalty even as consumer priorities diverge," he said.

"The challenge is not simply adding more technology. It is making sure the full retail journey, from discovery to checkout, works in a way that supports different consumer priorities while maintaining trust and performance at scale."