At Remitly, we’re all about helping you manage your money. This means becoming knowledgeable about different financial topics—from choosing the best bank for you to understanding the cost of living and getting started with investing. It also means making sure transactions are as convenient and user-friendly as possible. If you’re moving to Australia, understanding the tap and go payment system is key to your financial experience.
The tap and go payment system lets Aussies make contactless payments that are quick, easy, and convenient. This is a great way to pay for your everyday purchases, and one that is becoming more and more popular in Australia.
Overview of tap and go payments
Australians love a catchy slang term. Down under, a barbecue is a “barbie”. McDonald’s is “Macca’s”. And a contactless payment is “tap and go.”
Tap and go payments are a feature provided by debit and credit cards to make your purchases smoother and easier. All of Australia’s four major banks—CBA, Westpac, NAB, and ANZ—offer tap and go payments to their clients.
Definition and brief history
A tap and go payment is a feature that allows you to complete in-store purchases faster. Tap and go payments replace the need to swipe or insert your credit or debit card. Instead, if a merchant has a payment terminal, like an EFTPOS machine (that little card reader that looks like a calculator), you can hold your payment method within 4 cm of the machine to complete a purchase. If your total is less than $100, there’s nothing more you need to do. If your total is more than $100, you might have to enter your PIN.
Tap and go payments in Australia experienced a spike in popularity around 2019. This was likely driven by increased confidence in digital security as well as the major convenience of contactless transactions. The rise in tap and go payments can also be attributed to the COVID-19 pandemic as people made efforts to minimize the spread of germs.
These days, the majority of Australians believe that tap and go payments are the way of the future. Around 20% of Aussies live their daily lives without carrying any cash on their person.
Why choose tap and go?
Tap and go is easy. It’s the most convenient way to make a payment and requires the fewest steps. There’s no searching for exact change, like with cash. Unlike traditional credit and debit card purchases, you typically don’t have to enter your PIN or provide a signature for a contactless payment.
Going contactless also offers some security benefits. Instead of having to hand your credit or debit card over to a stranger, it never leaves your hand. Additionally, foregoing the use of your PIN reduces the risk of fraud.
Many cards offer rewards or points systems that can provide an additional benefit if you use your tap and go payments.
Types of contactless payment methods
Tap and go payments rely on Radio Frequency Identification or RFID technology. Any item with a chip and radio antenna can communicate through RFID technology. When placed close to a card reader, the antenna can pick up the signal and transmit the necessary information to complete the purchase.
Right now, there are three common methods of completing contactless payments. Read on to learn about mobile wallets, credit and debit cards, and wearable technology.
Contactless credit and debit cards
The easiest way to try out tap and go payments is with the credit or debit cards that you already use. Almost all new bank cards come issued with contactless payment technology. If your card has tap and go payment technology, you’ll see an icon for “PayPass” or “payWave” somewhere on the card. If you see this logo and your card is active, it’s ready to use for tap and go payments.
If you have an older card that doesn’t have tap and go technology, you can reach out to your bank to be issued a new card.
Mobile wallets
One of the most interesting trends that has occurred with the growing popularity of contactless payments is using your mobile phone to buy things. For many people, carrying their phone is becoming more important than carrying their wallets when shopping.
Mobile wallets are managed by different companies such as Google Pay, Apple Pay, or Samsung Pay. Your bank partners with these companies to offer mobile wallet capabilities. The mobile wallet securely stores your credit or debit card information within the app. When shopping, you activate the app and then place your phone near the point of sale to complete your purchase.
Using a mobile wallet eliminates the need for you to use your physical credit or debit card when making purchases. This means you’ll never be rifling through your wallet at checkout. In fact, you could even leave your wallet at home!
Although you do not need a strong signal to use your mobile wallet, your phone will need to have access to cellular data or WiFi to complete payments.
Wearable technology
Like mobile phones, many wearable technologies have contactless payment capabilities. Any item that can house the chip and antenna necessary for RFID technology can be a payment method.
If you have a newer watch or fitness tracker, it will likely be able to make tap and go payments. Other products, like rings, keychains, and hats, have been designed for contactless payment as well.
Some companies have even gone so far as to develop implantable chips that can be placed under your skin so that you can make payments with the snap of your finger—literally.
Remember, if you have technology that is capable of completing contactless payments, you want to treat that item with the same level of importance as you would your physical debit or credit card. With many different options, make sure you’re choosing a payment method that suits your lifestyle and daily habits.
How to use tap and go payments in Australia
Learning about contactless payments might sound futuristic and alien. However, the beauty of tap and go is that it’s very easy and user-friendly.
Setting up your payment method
Getting started with tap and go is pretty easy. Whether you’d like to use your physical card or your phone, everything you need to know is below:
Completing transactions step-by-step
- Check to see if your merchant accepts contactless payments. Sometimes you can see a logo or symbol on the point of sale terminal that indicates that tap and go is possible. This image is typically four curved bars, not unlike a Wi-Fi symbol, and a hand holding a card. If you don’t see the symbol, ask the merchant if tap and go is available.
- When the merchant asks you how you’d like to pay, ask for tap and go.
- Visually confirm that the payment total is correct. Although you should always do this, it’s important to check before using a contactless payment method because once you hold your card, phone, or wearable close to the machine, the payment will automatically go through.
- Wait to see if the payment is approved. In some situations, like for larger payments, you might have to enter your PIN.
Using tap and go on your phone
To set up tap and go on your phone, you first need to ensure that you have a debit or credit card that has contactless payment technology. Have a look at your cards and try to locate the “PayPass” or “payWave” symbol.
Once you’ve chosen what card or cards you’d like to add to your phone, navigate to your mobile payment app or digital wallet. There should be a plus symbol or an option to add your cards. You’ll have to provide the card number, expiration date, and security code. This information will then be sent to your bank for verification. As soon as your bank verifies your card details, you’ll be ready to make tap and go payments using your phone!
Most phones allow you to add more than one card to your digital wallet. Having multiple options for payment on your phone can provide you with in-the-moment options. Before you make a tap and go payment with your phone, make sure you’re using your preferred card.
Sometimes, you’ll have to enable mobile payments through the settings on your physical card. To do this, log in to your mobile banking app or your bank’s website.
Security and safety concerns
Are contactless payments safe?
There are security measures put into place to help ensure that you don’t make accidental contactless payments. These protections often make tap and go a more secure payment method than traditional cards.
When a contactless payment is initiated, it is assigned a unique transaction code. This makes sure that you don’t accidentally make multiple payments. It also means that your spending will be easy to track.
With tap and go, your card information is never handed over to someone else. In fact, if you use your mobile phone or wearable technology, your card doesn’t even have to come out of your wallet! This can help prevent theft and fraud.
The $100 transaction maximum for tap and go payments in Australia means that even if someone gets their hands on your card, they won’t be able to splash out!
Protecting yourself from fraud
Here are a few different things you can do to protect yourself from fraud and theft related to contactless payments.
- Don’t keep your cards or tap-and-go-enabled devices in easily accessible pockets and bags. Don’t be conspicuous with your wallet or phone, especially in public places where pickpockets might be lurking.
- You can prevent your card from being “read” accidentally or maliciously by using RFID blockers. These are metallic sleeves you can place over your cards to prevent the chip from being able to read or pass signals.
- Don’t let anyone take your card out of sight when making payments. Since you’re using contactless technology, you shouldn’t have to hand your card over at all!
- Always ask for a receipt to track payments.
- Check in on your bank statements regularly to ensure that all the purchases are familiar to you.
- Talk to your bank as soon as possible if you think your card—or its information—has been stolen or compromised.
Benefits of using contactless payments
Now that you know everything needed to make tap and go payments, why should you take the step and use this technology? If you’re used to more traditional payment options, there are some benefits to tap and go that might convince you to make the switch.
Convenience and speed
Tap and go payments are fast and simple. They simplify the number of steps needed to complete a purchase. For smaller payments, it’s just one step: putting your card near the reader. For larger payments, the addition of entering your PIN makes the transaction a two-step endeavour.
Needless to say, this is easier than finding your card, swiping it, entering your PIN, and signing. And it’s certainly easier than using cash!
Popularity in Australia
Whether you live in a big city or a smaller town, if you want to shop like an Aussie, you’re going to have to get used to tap and go payments. Contactless payments make up the vast majority of sales in Australia.
In 2022, around 80% of all in-person transactions were made using tap and go technology. Of all the transactions made using a credit or debit card, only 5% were completed using traditional methods. This means that nearly every single time Australians use a credit or debit card, their preferred method is tap and go.
As you prepare for your move to Australia, consider setting up tap and go payments. It will make your new life a little easier!
FAQs
Can you tap and go for a charge over $100?
Limits for contactless payments are determined by the bank or company through which you’re paying. In general, simple tap and go payments have an upper limit of $100. If you’re making a purchase worth more than $100, you can probably still use tap and go, but you’ll have to enter your PIN.
If tap and go isn’t available, you’ll be asked to traditionally swipe or insert your card at the point of sale.
How do I use PayID in Australia?
In Australia, PayID is a popular digital payment platform. PayID allows you to use your mobile number, email address, or other username as a personal identifier. This lets other people pay you without you having to provide an account number or a routing number. Also, it’s just easier to remember!
PayID is not an independent app. Instead, it’s integrated into different Australian banks and their online banking options. To use PayID, log in to your mobile banking app or your bank’s website and look for the PayID option. It’s usually under profile or settings. From there, you can set up your PayID function.