Research commissioned and released by PayPal Australia reveals a desire to buy and support local, and also suggests there will be a significant increase in online shopping this festive season, the first since the COVID-19 pandemic.

More than a third of consumers planned to buy Australian-made presents where possible, the research shows.

A total of 41 per cent said this Christmas they wanted to support Australian businesses that were doing it tough off the back of the drought and bushfires, such as those businesses on the new Buy From The Bush Marketplace, sponsored by PayPal Australia.

Since the online emporium's launch last month, more than 400 rural businesses have signed up, among them stores and makers from Dubbo region.

"There are so many beautiful, unique gifts to discover from small businesses in the bush," Buy From The Bush founder Grace Brennan said.

"The great joy of buying from the bush at Christmas is knowing the impact of your purchase. The gift you buy your loved one is also a gift to a small rural community.

"It generates cashflow, creates jobs and provides opportunity for growth."

PayPal's research reveals the amount of online Christmas shopping in Australia is expected to almost double to 48 per cent, taking it to an almost even split with in-store shopping.

"2020 has been an unusual year for us all with the pandemic changing many aspects of our daily lives, and Christmas will be no exception," PayPal Australia consumer shopping expert Danielle Grant said.

"This year many more Australians will shift their shopping behaviour and purchase gifts online rather than in-store - with safety and security driving this trend."