Do wearables and digital wallets spell the end of the credit card as we know it?

Kelly Emmerton

21 Nov 2018

Wearable payment technology credit cards content

Wearable payment technology and digital wallets are the coolest new trend in the banking world - but does it really have the power to replace something as everyday and useful as your credit card? According to MyState Bank it’s more likely than you might think.

Although digital wallets have technically been around since the 1990’s, recent innovative versions including Apple Pay, Samsung Pay, Google Pay, FitBit Pay and Garmin Pay started really making a splash in the Aussie market a few years ago, with banks big and small jumping on the trend.

Now, MyState Bank has predicted a big take up of digital wallet technology in the coming years.

“We expect a 200% increase in customers using digital wallets by 2020 and these services could easily overtake the use of credit cards by 2022,” said MyState Bank CEO, Melos Sulicich.

MyState Bank recently added Garmin Pay and FitBit pay to it’s payment technology options, alongside Apple Pay, Samsung Pay and Google Pay.

Although MyState Bank said digital wallets are ‘simple’ and ‘secure’, it also said security concerns are still the biggest obstacle for Aussies picking up this new technology in droves.

RELATED: How to save on international shopping this Black Friday and Cyber Monday

Mozo Data Manager Peter Marshall wasn’t so optimistic about the chances of digital wallet technology overtaking plastic, and agreed that security concerns could be one thing holding spenders back.

“I think we could see a drop in the use of debit cards, but I think it’s going to be a long time before plastic is phased out completely,” he said.

“One reason for that is habit - people are used to using a plastic card when paying. But I do think security concerns play into it as well. Credit cards in general have pretty robust security measures and dedicated fraud prevention programs. If a digital wallet appears as a chink in your financial armour, it’s definitely enough to make you think twice.”

Most digital wallets do have security measures in place to keep Aussies details safe, for example, on the Garmin Pay website, it states that “Garmin Pay protects you by using watch-specific card numbers and transaction codes every time you make a purchase.  And your card number is not stored on your device, on our servers or passed to merchants when you pay.”

Does your credit card need upgrading so you can jump on emerging digital payment trends? Check out some of today’s credit card offers below.

Credit card offers 2018

Rates updated daily. Advertiser disclosure.

  • Apply By 28 February 2022

    Bendigo Bank Low Rate Credit Card

    No current offer

    0% p.a. for 18 months then 11.99% p.a.

    $45

    0% p.a. on purchases for up to 18 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.

    • 0% p.a. for 18 months then 11.99% p.a.

    • 0% p.a. for 18 months

    • No current offer

    • 13.99% p.a.

    • 55

    • 3.00%

    • $45

    • $15.00

    • 0.50%, Min $3.25

    Read our Mozo Review to learn more about the Low Rate Credit Card

    Details Close

  • Virgin Money Virgin Australia Velocity Flyer Card - Bonus Points Offer

    0% p.a. for 18 months and then 20.99% p.a.

    20.74% p.a.

    $129 $64 in the first year

    Earn up to 100,000 bonus points in the first 4 months (conditions apply) and 0% Balance transfer for 18 months

    • 20.74% p.a.

    • -

    • 0% p.a. for 18 months and then 20.99% p.a.

    • 20.99% p.a.

    • 55

    • 64.0

    • 3.30%

    • $129 $64 in the first year

    • $30.00

    • 2.7%, Min $2.70

    Read our Mozo Review to learn more about the Virgin Australia Velocity Flyer Card - Bonus Points Offer

    Details Close

  • Westpac Low Rate

    0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)

    13.74% p.a.

    $59 $0 in the first year

    Enjoy a super low rate of 13.74% with 55 days interest free plus 0% balance transfer for up to 28 months at 1% BT fee. No annual card fee for the first year, $59 thereafter. New Cards only. Offer ends February 24th 2022. T&C's and exclusions apply.

    • 13.74% p.a.

    • -

    • 0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)

    • 21.49% p.a.

    • 55

    • 0.0

    • 3.00%

    • $59 $0 in the first year

    • $15.00

    • 3%

    Read our Mozo Review to learn more about the Low Rate

    Details Close

  • humm90 Mastercard

    No current offer

    23.99% p.a.

    $99 $0 in the first year

    With up to 110 days interest free on your spending, this card is pretty unique in the market, and great for managing your daily spend. Plus, no foreign transaction fees overseas or online. Plus $400 cash back when you spend $4,000 on eligible purchases within first 120 days (T&Cs apply).

    • 23.99% p.a.

    • -

    • No current offer

    • 25.99% p.a.

    • 110

    • 0.0

    • 0%

    • $99 $0 in the first year

    • $35.00

    • 3%, min $3

    Read our Mozo Review to learn more about the Mastercard

    Details Close

^See information about the Mozo Experts Choice Credit cards Awards