Mobile payments: a guide to paying with your smartphone
If predictions by the experts ring true, the days of paying with cash and coins could soon be a thing of the past. In fact, that could be as soon as 2022, according to a 2019 CommBank report.
And Aussies aren’t just ditching cash but we are also taking it digital. Recent research has shown that almost 10% of card users have adopted smartphone payments and that number is only set to grow.
Haven’t joined the digital wallet ranks yet? Here's a roundup of the major smartphone payment options available now, to help you decide which one is right for you.
But first … what is a mobile wallet?
A ‘mobile wallet’ simply refers to an app that gives you the ability to make purchases with your smartphone at point of sale (POS) terminals. Payments are contactless. Mobile wallet apps communicate with POS terminals through technology dubbed ‘near field communication’ (NFC).
In Australia, there are currently a few mobile wallet options available to banking customers: Apple Pay, Google Pay, Samsung Pay, Fitbit Pay and Garmin Pay.
Let’s have a deeper look into what each has to offer.
Apple Pay
Apple Pay uptake is booming in Australia as one of our favourite ways to pay. Apple Pay is compatible with iPhones (depending on the model), plus you can also use it to make in-app purchases on most Apple devices such as your Apple Watch and iPad.
Key facts:
- While AMEX and ANZ were the first providers to start offering Apple Pay in Australia, a range of banks and credit unions have followed suit. Since then, NAB started offering Apple Pay to its customers in May 2019, and Westpac in April 2020, as well as a number of other credit card and debit card providers. Even popular Aussie supermarket Woolworths adopted the digital wallet in June 2019.
- Apple argues that its mobile wallet is safer and more secure than a physical card issued by your own banking provider. That’s because when you make a purchase, your card details are completely hidden from the merchant in the form of an encrypted code.
How to use it on your smartphone:
1. Download or open the app from your Apple ‘Wallet’, using your existing Apple ID. Then you’ll be prompted to set up your Face ID or fingerprint password.
2. Upload the details of any eligible debit and credit cards you have in your name by taking photos when prompted with your smartphone.
3. Pay with Apple Pay online or in person at a terminal that accepts NFC transactions (anywhere you can use payWave and PayPass). Access the app with your Face ID or fingerprint, choose the card you want to pay with and hover your phone near the merchant terminal. Payment complete!
Google Pay
Google Pay, Google’s mobile wallet that was previously dubbed Android Pay, entered the scene a little later than Apple Pay in Australia, but it’s still going strong. And given that the search engine giant now offers its very own phone dubbed ‘Pixel’, we’ll probably see the number of Aussie Google Pay users steadily increase.
Key facts:
- A range of Aussie financial providers support Google Pay including all of the big four banks as well as other popular card providers such as American Express, UBank, ING, and more.
- It’s compatible with Android operating systems, including WearOS smartwatches, making the app suitable for smartphone users who aren’t Apple enthusiasts.
How to use it on your smartphone:
1. Download Google Pay from Google Play, then set up your account.
2. Upload your compatible cards.
3. To make a purchase with your phone, hold it over a payment terminal supporting NFC. You can set up fingerprint identification (if your phone supports it) or simply set up a pin.
4. Just unlock your phone as you normally would and hover away!
Samsung Pay
Samsung launched its own mobile payment app in 2016, known as Samsung Pay. While only 55% of credit card and debit card providers on the Mozo database offer this mobile payment method, it has some pretty handy features.
Key facts:
- AMEX and Citibank jumped on board first as the only two card providers offering Samsung Pay to their Aussie cardholders. But these days a wide range of banks, credit unions and other financial providers offer Samsung Pay, including all of the big four.
- Samsung Pay not only works at terminals where contactless payments are accepted, it can be used at older merchant terminals which read magnetic stripes too. That’s all thanks to “Magnetic Secure Transmission” (MST), a technology that can release magnetic signals from your phone. So the unique thing about Samsung Pay is that it has both NFC and MST capabilities. Impressive!
- The app can require facial recognition or fingerprint authentication if you opt in for it, just like Apple Pay.
How to use it on your Samsung phone:
1. Open Samsung Pay from your home screen, apps menu, or lock screen.
2. Swipe to choose the card you want to pay with.
3. Verify yourself with facial recognition or the touch of your finger (alternatively, you can tweak your settings to not include your face or fingerprint, but a pin number instead).
4. Hover your phone over the merchant terminal to make the purchase.
Wearables: Fitbit Pay and Garmin Pay
If paying with your phone isn’t enough, believe it or not there are also options to pay from the watch on your wrist (as long as it’s of the Fitbit or Garmin variety). Like Apple Pay, Google Pay and Samsung Pay, these wearable options allow you to make contactless payments at POS terminals. While two very separate smartwatch companies both Fitbit Pay and Garmin Pay launched back in 2017.
Key facts:
- Fitbit Pay launched in Australia with a massive partnership with ANZ, CommBank and NAB. While late to the party, Westpac now offers Fitbit Pay, along with a bunch of other banks and credit unions on the Mozo database.
- Garmin Pay which dropped around the same time as Fitbit Pay is also offered by all of the big four and other credit card and debit card providers.
- Both wearable options are designed for just that - to be worn. So while each has an app for your smartphone which you can link to your watch, there is no option to use Fitbit Pay or Garmin Pay as a payment method through your mobile phone device.
How to use Fitbit Pay:
1. On the Fitbit app on your smartphone tap the Today tab and then on your profile picture.
2. Tap your device image and then tap the Wallet tile.
3. Follow the on-screen prompts and add the card you desire. (You may need to verify some details or set up a 4-digit PIN).
4. Once your card is added, follow the on-screen steps to turn on notifications to complete set up.
How to use Garmin Pay:
1. Open the Garmin app on your smartphone and enter a 4-digit passcode.
2. Tap either Mastercard or Visa and fill in your card details (or scan them using your device’s camera).
3. Depending on your bank, you may need to verify yourself through a unique code in order to link your desired card.
4. Once verified, you are free to use Garmin pay. Simply press and hold the action button and tap the wallet icon.
What the big four banks offer
CommBank
While they weren't one of the first, Commbank have now jumped on board the digital wallet train and offer a huge range of options for debit and credit card customers. They have embraced Apple Pay, Samsung Pay, Google Pay and even have their own CommBank Tap and Pay within their banking app (only available on Android smartphones). They also have payment options for your wearables, like Apple Watch, Garmin, Fitbit, Samsung and Google Wear OS.
ANZ
ANZ was the first of the big four banks to offer customers Apple Pay for credit and debit cards. ANZ customers can also use Samsung Pay, Google Pay, Fitbit Pay and Garmin Pay. So whatever your mobile payment preference, there's an option to suit you.
NAB
NAB customers now have access to Apple Pay, Samsung Pay, Google Pay, Fitbit Pay and Garmin Pay. They also offer Nab Pay, which is compatible with Android powered mobiles. Once you’ve downloaded the app and set up your account, you simply press a button within the app to Tap & Pay at a merchant terminal that accepts contactless payments. All payment methods work with NAB credit and debit cards.
Westpac
Westpac offers mobile banking and digital wallets like Apple Pay, Samsung Pay, Google Pay. Customers can also use a range of wearable payment options with Westpac’s own PayWear as well as Fitbit Pay and Garmin Pay. You can pay with your phone or wearable with eligible Westpac debit and credit cards.
RELATED GUIDE: The banking world at your fingertips: A guide to biometric payments
So that was a roundup of the mobile wallets currently available to everyday spenders in Australia (and the ones in the works). To find out more about how this innovative technology works, head to our fintech hub or if you want to start comparing credit cards or check out out top choices of the best credit cards.
Want some of the best credit card deals available? Compare below. - last updated 19 March 2024
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NAB Low Rate Card - Balance Transfer Offer
Spend with confidence with a low 13.49% p.a. variable purchase rate and 0% p.a. interest on balance transfers for the first 28 months (T&Cs apply). 2% balance transfer fee applies. There’s also up to 55 interest free days on purchases to help you manage your budget better when you make minimum repayments. Minimum credit limit $1,000. No annual fee for the first year (usually $59).
Purchase rate
13.49% p.a.Balance transfer rate
0% p.a. for 28 months and then 21.74% p.a. (2.00% balance transfer fee)Annual fee
$59 $0 in the first yearRewards program
-CompareCompareLow Rate Card - Balance Transfer Offer
Spend with confidence with a low 13.49% p.a. variable purchase rate and 0% p.a. interest on balance transfers for the first 28 months (T&Cs apply). 2% balance transfer fee applies. There’s also up to 55 interest free days on purchases to help you manage your budget better when you make minimum repayments. Minimum credit limit $1,000. No annual fee for the first year (usually $59).
- Purchase rate
- 13.49% p.a.
- Balance transfer rate
- 0% p.a. for 28 months and then 21.74% p.a. (2.00% balance transfer fee)
- Annual fee
- $59 $0 in the first year
- Rewards program
- -
- Purchase rate
- 13.49% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 28 months and then 21.74% p.a. (2.00% balance transfer fee)
- Cash advance
- 21.74% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 0.0
- Foreign exchange margin
- 3.00%
- Annual card fee
- $59 $0 in the first year
- Late payment fee
- $15.00
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- 3%, Min $3
Read our Mozo Review to learn more about the NAB Low Rate Card - Balance Transfer Offer
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American Express Platinum Edge Credit Card
Enjoy $0 Annual Card Fee (usually $195) in the first year when you apply online and are approved. T&Cs apply. New Card Members only. Offer subject to change without notice.
Purchase rate
23.99% p.a.Balance transfer rate
No current offerAnnual fee
$195 $0 in the first yearRewards program
Membership RewardsCompareComparePlatinum Edge Credit Card
Enjoy $0 Annual Card Fee (usually $195) in the first year when you apply online and are approved. T&Cs apply. New Card Members only. Offer subject to change without notice.
- Purchase rate
- 23.99% p.a.
- Balance transfer rate
- No current offer
- Annual fee
- $195 $0 in the first year
- Rewards program
- Membership Rewards
- Purchase rate
- 23.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- No current offer
- Cash advance
- -
- Interest free days on purchases
- 55
- Intro fee
- 0.0
- Foreign exchange margin
- 3.00%
- Annual card fee
- $195 $0 in the first year
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- $30.00
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- 2%, min $2.50
Read our Mozo Review to learn more about the American Express Platinum Edge Credit Card
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Apply By 2 Apr 2024
American Express Qantas Ultimate Card
Receive 100,000 bonus Qantas Points when you apply online by 2 April 2024 , are approved, and spend $3,000 on eligible purchases on your new Qantas American Express Ultimate Card within the first 3 months. T&Cs apply. Available to new American Express Card Members only.
Purchase rate
23.99% p.a.Balance transfer rate
No current offerAnnual fee
$450Rewards program
Qantas Frequent FlyerCompareCompareQantas Ultimate Card
Receive 100,000 bonus Qantas Points when you apply online by 2 April 2024 , are approved, and spend $3,000 on eligible purchases on your new Qantas American Express Ultimate Card within the first 3 months. T&Cs apply. Available to new American Express Card Members only.
- Purchase rate
- 23.99% p.a.
- Balance transfer rate
- No current offer
- Annual fee
- $450
- Rewards program
- Qantas Frequent Flyer
- Purchase rate
- 23.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- No current offer
- Cash advance
- -
- Interest free days on purchases
- 44
- Intro fee
- -
- Foreign exchange margin
- 3.00%
- Annual card fee
- $450
- Late payment fee
- $30.00
- Cash advance fee
- 2%, min $2.50
Read our Mozo Review to learn more about the American Express Qantas Ultimate Card
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American Express Explorer® Credit Card
Receive 50,000 bonus membership rewards points when you apply online, are approved, and spend $4,000 on eligible purchases on your new card within the first 3 months (T&Cs apply). New Card Members only. Complimentary domestic & international Travel Insurance (T&Cs apply). Up to 55 days interest free on purchases. $395 annual fee.
Purchase rate
23.99% p.a.Balance transfer rate
No current offerAnnual fee
$395Rewards program
Membership RewardsCompareCompareExplorer® Credit Card
Receive 50,000 bonus membership rewards points when you apply online, are approved, and spend $4,000 on eligible purchases on your new card within the first 3 months (T&Cs apply). New Card Members only. Complimentary domestic & international Travel Insurance (T&Cs apply). Up to 55 days interest free on purchases. $395 annual fee.
- Purchase rate
- 23.99% p.a.
- Balance transfer rate
- No current offer
- Annual fee
- $395
- Rewards program
- Membership Rewards
- Purchase rate
- 23.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- No current offer
- Cash advance
- -
- Interest free days on purchases
- 55
- Intro fee
- -
- Foreign exchange margin
- 3.00%
- Annual card fee
- $395
- Late payment fee
- $30.00
- Cash advance fee
- 2%, min $2.50
Read our Mozo Review to learn more about the American Express Explorer® Credit Card
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G&C Mutual Bank Platinum Visa Credit Card
Receive 50,000 bonus Qantas Points when you apply, are approved, and spend $5,000 on eligible purchases on your new G&C Mutual Bank Platinum Visa Credit Card within 90 days. T&Cs apply. Available to new G&C Mutual Bank Card Members only. Earn 10,000 bonus Qantas Points annually. T&Cs apply. Access Platinum Visa Concierge. Add an additional cardholder at no extra cost.
Purchase rate
19.99% p.a.Balance transfer rate
No current offerAnnual fee
$299Rewards program
Qantas Frequent FlyerCompareComparePlatinum Visa Credit Card
Receive 50,000 bonus Qantas Points when you apply, are approved, and spend $5,000 on eligible purchases on your new G&C Mutual Bank Platinum Visa Credit Card within 90 days. T&Cs apply. Available to new G&C Mutual Bank Card Members only. Earn 10,000 bonus Qantas Points annually. T&Cs apply. Access Platinum Visa Concierge. Add an additional cardholder at no extra cost.
- Purchase rate
- 19.99% p.a.
- Balance transfer rate
- No current offer
- Annual fee
- $299
- Rewards program
- Qantas Frequent Flyer
- Purchase rate
- 19.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- No current offer
- Cash advance
- 21.99% p.a.
- Interest free days on purchases
- 50
- Intro fee
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- Foreign exchange margin
- 3.00%
- Annual card fee
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Read our Mozo Review to learn more about the G&C Mutual Bank Platinum Visa Credit Card
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