What are Mobile Payments & Wearable Payment Devices in Australia

More and more, Australians are going cashless and opting for secure ways to pay using their smartphone or wearables. But with the wide variety of mobile payment devices and wearable options on offer in Australia to tap and go, how do you choose what suits you?

A mobile wallet or mobile payment is a method of paying for everyday items using a mobile device instead of paying via cash or card at a point-of-sale terminal. This can be done using an app on a smartphone or via a wearable such as a watch enabled with mobile payments, like an Apple watch.

This can be particularly handy if, for example, you like to go for a morning walk to your favourite café where you grab a coffee. A mobile wallet allows you to enjoy your walk with nothing but your mobile phone or a smartwatch such as an Apple watch or fitness watches such as a Garmin or Fitbit.

In Australia, there are a variety of mobile wallet options available to banking customers — Apple Pay, Google Wallet (formerly Google Pay) and Samsung Pay to name some of the major options. These smartphone apps allow you to add your eligible credit or debit card information securely to your phone or wearable so that you can then tap your device to pay just like you would a physical card. These apps may also require an additional security measure such as a quick ID verification like facial recognition or a PIN to unlock and use the app when you want to make a purchase.

For some, mobile wallets are more appealing as they don’t require you to use a card that could be lost, and when you make a purchase your card details are hidden from the merchant as no physical card is presented.

Should you lose your mobile phone or someone else accesses it, typically they won’t be able to access your mobile wallet if they can’t bypass your PIN-locked screen. However, if they do, it’s important to add additional security measures such as facial recognition or fingerprint scan to activate your mobile wallet for added protection.

Should your phone ever become lost or stolen, it’s important to notify your bank or credit card provider so it can freeze your card and prevent it from being used until your phone is recovered.

Depending on the model of iPhone or Apple device you’re using; Apple Pay is the payment app compatible with these devices. You may be able to use Apple Pay to make many in-app purchases on your Apple devices such as your Apple Watch and iPad.

To use Apple Pay on a compatible device you will need a supported debit or credit card from a card issuer and an Apple ID signed into the iCloud. You can then follow the setup instructions in the Wallet app before making purchases using your mobile wallet both in physical stores as well as within participating apps or websites you access on your phone.

What was once called Google Pay, Google Wallet is the name for existing Google payment products. It works mostly the same way but is designed for devices operating on Google or Android systems including WearOS smartwatches. This makes the app suitable for those who aren’t Apple enthusiasts or who don’t have an Apple device.

You can download Google Wallet from Google Play, and then set up your account by uploading your compatible credit or debit card. You can also set up additional security measures if your device supports this, including fingerprint identification or a PIN.

Likewise, for those who own a Samsung device, they’ve also launched a mobile payment service known as Samsung Pay.

Conveniently, Samsung Pay not only works at terminals where ‘tap and go’ contactless payments are accepted, but it can also be used at older merchant terminals that read magnetic stripes too.

Like the other platforms, users of Samsung Pay can also set up facial recognition or fingerprint authentication for added security measures.

For added convenience, you can also make payment using a compatible smartwatch or fitness watch like a Garmin or Fitbit. Like Apple Pay, Google Pay and Samsung Pay, these wearable options enable you to make payments at the same point-of-sale terminals where you’d use your phone.

Wearable options are designed to be worn, keeping your hands free when you’re on the go. These wearable options work via an app for your smartphone that you can link to your watch, whether that’s Apple, Google or Samsung.

As the popularity of digital payments grows, many of the major banks and lenders in Australia are ensuring they offer options to enable their customers to link their cards on various digital wallets which allow you to make payments using your compatible mobile device.