From digital wallets to wearables: Why the next wave of payments could be on your wrist
Australians are embracing the shift from physical bank and ATM cards, with smartphone-powered payments leading the charge. However, the next frontier in how we pay may not be in your hand – but on your wrist or even in your palm.
This week, global payments processing company Worldpay released its 10th Global Payments Report, revealing that as of 2024, digital wallets accounted for nearly two-fifths (39%) of online transaction value in Australia – up from just 21% in 2014.
By 2030, that figure is forecast to jump to 51%, making digital wallets the dominant e-commerce payment method. For in-store purchases, wallet use has already increased ninefold over the past decade, now representing almost one-fifth (19%) of point-of-sale (POS) value, and projected to double again to 38% by 2030.
While smartphones are the core payment tool for Aussies today, the report hints at a potential shift: “Any technology can quickly turn from the disruptor to the disrupted. Payments via wearables like smartwatches continue to gain popularity,” the report notes. “Biometric authentication using palm or retina scans allows consumers to pay even without a device.”
Aussies keen for fast, simple and stress-free solutions
With biometric and wearable tech becoming more sophisticated, industry insiders suggest that future payment experiences may move beyond phones entirely. In restaurants, for example, Worldpay predicts “you may regularly enter, eat and leave without ever taking out a wallet or phone,” pointing to the rise of frictionless biometric checkouts.
The move toward more seamless, embedded payment experiences is driven by consumer expectations. Convenience is now king: nearly three quarters (73%) of Australians using digital wallets at POS cited convenience and speed as their main reasons for doing so.
This evolution also opens the door for financial institutions to rethink how they connect with digital-first customers. While wearable and biometric payments may seem futuristic, they’re still often powered by everyday tools – namely, your bank account or debit card.
Worldpay's report found more than two-fifths (42%) of Australians fund their digital wallets via debit cards, while around one-fifth (19%) use bank accounts. That means your choice of bank account still plays a central role in how fast – and how smoothly – your payments go through.
As the world shifts from wallets to wearables, now’s a smart time to check whether your bank is keeping pace with the future of payments. Speak to your bank and if you're unsatisfied then you may want to compare transaction accounts that offer full compatibility with mobile wallets, wearables, and biometric platforms – and make sure your money moves are ready for 2030.