Contactless payments in Australia are everywhere, and I mean everywhere. The first time I tried to pay cash at a Melbourne café, the barista looked at me like I’d just pulled out a stone tablet and chisel. She took my $20 note with visible reluctance while the entire queue behind me tapped their phones and walked out in seconds.
I’m finishing my Master’s at the University of Melbourne, and I’ve been here long enough to go from fumbling with physical cards to becoming one of those people who gets mildly annoyed when a shop doesn’t have tap functionality. The transition wasn’t instant though. I remember standing at the Coles checkout for what felt like an eternity, trying to figure out if I was supposed to unlock my phone first or just wave it near the reader like some kind of wizard.
So here’s everything I know about using contactless payments, Apple Pay, and Google Pay in Australia. No corporate jargon, just what actually works based on my daily life here.
What Contactless Payment Actually Means in Australia
Let’s start with the basics because I wish someone had explained this to me properly before I arrived.
Contactless payment means you tap your card or phone on a payment terminal instead of inserting or swiping. In Australia, pretty much every business has this technology. We’re talking about your local milk bar, the campus café, the tram conductor’s machine, everywhere. The technical term is NFC (Near Field Communication), but nobody calls it that. You’ll hear people say “tap,” “tap and go,” or “payWave” (which is actually just Visa’s branding, but everyone uses it generically).
The important bit: transactions under $200 don’t need a PIN. You just tap and walk away. Over $200, you’ll need to enter your PIN or unlock your phone. This limit used to be lower, but it increased during COVID and stayed there because, honestly, it’s convenient.
Most international students get confused about the difference between tapping a physical card versus using your phone. They’re basically the same thing. Your phone is just storing your card details digitally and transmitting them the same way your physical card would. The advantage? You don’t need to carry your wallet, and if you lose your phone, you can remotely disable the payment function. Lose your card? You’re calling the bank at 2am.
Setting Up Apple Pay in Australia
I use an iPhone, so I set up Apple Pay within my first week of opening a bank account in Australia. The process took maybe three minutes, which surprised me because I expected more bureaucracy.
Here’s exactly what you do. Open your Wallet app (it comes pre-installed on iPhones). Tap the plus sign in the top right corner. Select “Debit or Credit Card” and then either scan your card with your camera or type in the details manually. Your bank will verify the card, usually by sending a code via SMS or through their banking app. Once you enter that code, you’re done.
Not all Australian banks supported Apple Pay immediately when I arrived. Most major banks do now, but I remember one of my friends having issues with a smaller bank. If you’ve followed my guide on best bank accounts for international students, you’ll likely have picked a bank that supports both Apple Pay and Google Pay without drama.
The verification process varies by bank. Commonwealth Bank verified mine instantly through their app. NAB sent me an SMS code. Westpac made me call them (yes, actually call them) because my card was too new and their system flagged it as suspicious. That was annoying but sorted within five minutes.
You can add multiple cards to Apple Pay. I have my debit card as default and a credit card as backup. You can switch between them when paying by double-clicking the side button and selecting which card to use. Honestly, though, I just use my debit card for everything and never bother switching.
Setting Up Google Pay in Australia
Google Pay works almost identically to Apple Pay, just for Android phones. My flatmate uses it, and I’ve watched him set it up multiple times for different cards.
Open the Google Pay app (download it from the Play Store if you don’t have it). Tap “Payment” at the bottom, then the plus sign to add a card. Like Apple Pay, you can scan the card or type the details. Your bank sends a verification code, you enter it, done.
One difference I’ve noticed: Google Pay seems more flexible with different Android phone models. Some older or cheaper Android phones might not support NFC payments, so check your phone’s specs before assuming it’ll work. Most phones sold in Australia in the last few years should be fine, but if you brought a phone from home, especially an older model, it’s worth checking.
Google Pay also lets you add loyalty cards, gift cards, and transit cards to the app. Apple Pay does this too, but Google’s interface feels slightly more organised for managing multiple cards. That said, both work perfectly fine for actual payments, which is what matters.
The default card setting works the same way. Whichever card you set as default will be used automatically when you tap to pay. You can change this in the app settings or select a different card before tapping.
How to Actually Pay With Your Phone
This is where I embarrassed myself multiple times before figuring it out.
For Apple Pay: Double-click the side button on your iPhone (or home button on older models). Your default card appears on screen. Hold your phone near the contactless reader while using Face ID or Touch ID to authenticate. You’ll feel a slight vibration and see a checkmark when the payment goes through. Keep your phone there for a second or two. Don’t pull it away immediately.
For Google Pay: Just unlock your phone and hold it near the reader. That’s it. You don’t need to open the app. Android phones are generally more forgiving about the exact positioning. If your screen is off, you might need to wake it up first, but you don’t need to unlock it for payments under $200.
The most common mistake I see international students make: holding the phone too far from the reader. It needs to be within a few centimetres. The back of your phone (where the NFC chip is) should be almost touching the terminal. I’ve seen people waving their phone around like they’re trying to bless the payment terminal. That doesn’t work.
Another thing: some older terminals take a second longer to register mobile payments compared to physical cards. If it doesn’t work immediately, keep your phone still near the reader for another second or two. The terminal will beep or flash when it’s processed.
If the payment fails (this happens occasionally), just try again. Sometimes the terminal times out, or there’s a brief connection issue. Don’t panic. The transaction won’t go through twice. I’ve had this happen at supermarkets during busy periods when the terminal is processing multiple transactions quickly.
Using Physical Cards for Contactless Payments
Before everyone goes all-in on mobile payments, you should know that using contactless payments with a physical card is still incredibly common in Australia. I still carry my card as backup because my phone has died at inconvenient moments.
Your Australian debit or credit card has a small contactless symbol (looks like a WiFi icon turned sideways). This means it supports tap payments. Every card I’ve received from Australian banks has had this built-in. If you got a new card after opening your bank account, it almost certainly has contactless functionality.
Using it is dead simple. Hold your card flat against or very close to the payment terminal. Wait for the beep and the confirmation on screen. Under $200, you’re done. Over $200, you’ll need to insert the card and enter your PIN.
The positioning matters here too. I’ve found that holding the card flat and steady works better than waving it around. Some older terminals are pickier about exact positioning. If it doesn’t work the first time, keep the card still near the reader for a second or two longer.
One advantage of physical cards: they work even when your phone is dead. I learned this after a long day at uni when my phone died and I needed to buy dinner. My card saved me from having to find a charging point or borrow money from a friend.
Where Contactless Payments Are Accepted
Short answer: almost everywhere.
Long answer: I can count on one hand the number of places I’ve been to in Melbourne that didn’t accept contactless payments. Even the tiny Vietnamese bakery near my place that looks like it’s from 1985 has a contactless terminal. Food trucks at markets, university cafes, public transport, parking meters, vending machines, literally everywhere.
The only exceptions I’ve encountered: some very small cash-only businesses (usually for tax reasons they won’t admit to), a few older market stalls, and occasionally at cultural festivals where vendors haven’t upgraded their equipment. But these are rare. If you see a payment terminal, assume it accepts contactless unless there’s a sign saying otherwise.
Public transport is probably the most useful application. In Melbourne, you can tap your phone or contactless card directly on the myki readers instead of getting a myki card. In Sydney, you can use it on the Opal system. This was a game-changer for me because I’m terrible at keeping track of transport cards. I’ve written more about this in my guide to public transport in Australia if you want specifics.
International payment terminals at the airport work with Apple Pay and Google Pay too. When I flew back home for a visit, I used Apple Pay at every airport I passed through without issues. The exchange rates were handled automatically by my bank.
Common Issues and How to Fix Them
I’ve run into a few problems with contactless payments over the years. Here’s what actually goes wrong and how to fix it.
Payment declined when you know you have money: This usually means your bank has flagged the transaction as suspicious or you’ve hit a daily limit. I had this happen at JB Hi-Fi when buying a laptop. The transaction was over $200, which triggered my bank’s fraud protection. I had to verify it through the banking app and try again. Sometimes you need to call your bank, but usually, the app sorts it quickly.
Terminal doesn’t recognise your phone: Make sure your NFC is turned on. On iPhones, this should be automatic, but on Android, you might need to enable it in settings. Also, check if your phone case is too thick. Some cases with metal or magnetic components interfere with NFC. I had a bulky protective case that blocked the signal until I switched to a thinner one.
Card works but phone doesn’t: Your card might not be properly set up in the wallet app. Open Apple Pay or Google Pay and check if the card shows as active. Sometimes cards expire or get deactivated for security reasons, and you need to re-add them. This happened to me when my bank sent me a new card and deactivated the old one without warning.
Can’t find where to tap: Look for a contactless symbol or a small screen that says “tap card.” Sometimes these terminals are positioned weirdly. At one café, the terminal was mounted on the side of the counter, and I kept trying to tap on the cash register like an idiot until the barista pointed it out.
Transaction processes but you get charged twice: This is rare but has happened to me once. If you tap, don’t get confirmation, then tap again, you might process two separate transactions. Check your bank statement later that day. If it did charge twice, one will usually be an “authorisation hold” that drops off within 24-48 hours. If both charges stick, contact your bank.
If you lose your bank card, you can immediately remove it from Apple Pay or Google Pay through your banking app. This doesn’t require you to have the physical card. The bank will also send you a new card, which you’ll need to add to your digital wallet again.
Security and Safety
Everyone asks about security, usually right after they’ve already set everything up.
Is it safe? Yes, much safer than carrying cash or even using your physical card. Here’s why: when you pay with Apple Pay or Google Pay, the terminal receives a one-time transaction code, not your actual card number. If someone hacks the terminal or intercepts the payment, they get a useless code that can’t be reused. Your real card details never leave your phone.
Physical contactless cards are slightly less secure because they transmit your actual card number (though it’s encrypted). There’s a theoretical risk of someone using an RFID reader to skim your card details while you’re standing in a crowd. In practice, this is incredibly rare in Australia, and the fraud protection on your card would catch suspicious transactions anyway.
What if someone steals your phone? If your phone is locked (and it should be), they can’t use Apple Pay or Google Pay without your Face ID, fingerprint, or PIN. Unlike a stolen physical card, which someone could use immediately for purchases under $200, your phone requires authentication even for small transactions.
If you realise your phone is stolen, immediately log into your bank’s website or app from another device and disable your cards. You can also remotely lock or wipe your phone through Find My iPhone or Find My Device on Android. I’ve never had my phone stolen, but a friend did, and she managed to lock everything down within minutes.
Daily limits: Most banks impose daily transaction limits on contactless payments for security. Mine is $1,000 per day for tap payments, but this varies by bank. If you need to make a large purchase, you might need to insert the card and use your PIN, or split the payment across multiple transactions. Check with your bank if you’re planning a big purchase.
The bank fees for using contactless payments are the same as regular card payments (usually none for domestic transactions, but check for international fees if you’re using an overseas card).
My Honest Take on Mobile Payments vs Physical Cards
After using both for years, here’s what I actually do.
I use Apple Pay for about 90% of my transactions. It’s faster, I always have my phone anyway, and I don’t need to dig through my wallet. The main situations where I use my physical card: when my phone is dead (rare), when I’m at a place that doesn’t accept mobile payments (rarer), or when the terminal is acting weird and won’t read my phone properly (happens occasionally at older equipment).
Some people prefer physical cards because they feel more tangible. Fair enough. But I’ve found that using my phone helps me track spending better because every transaction automatically shows up in my banking app with a notification. With a physical card, I’d sometimes forget what I spent money on until I checked my statement days later.
The cost of living in Melbourne is high enough without losing track of small purchases. Using mobile payments with instant notifications keeps me more aware of my spending patterns.
One unexpected benefit: I split bills with flatmates constantly, and using mobile payments makes it easier to remember exactly what I spent and when. If we’re at a restaurant and someone offers to pay the whole bill while everyone else transfers their share later, I can immediately check my banking app for the exact amount I need to send them.
What About Other Digital Wallets?
Australia has a few other payment options beyond Apple Pay and Google Pay that you might hear about.
Samsung Pay: Works basically the same as Google Pay but exclusive to Samsung phones. I don’t use Samsung, so I can’t give detailed personal experience, but my friends who use it report no issues. Setup is identical to Google Pay.
PayPal: You can’t use PayPal for tap-and-go payments at physical stores in Australia. PayPal is great for online shopping and sending money to friends, but it won’t work at your local Woolworths checkout. Some people get confused about this because PayPal is so common online.
BPAY and POLi: These are Australian-specific payment systems you’ll encounter when paying bills or doing online banking. They’re not related to contactless payments. BPAY is for paying bills using your bank account. POLi is a payment method some online retailers use. Neither works for in-person tap payments.
Cryptocurrency: Don’t even think about trying to use Bitcoin or whatever to pay for your groceries. A tiny handful of Australian businesses accept crypto, but it’s not practical for daily use. You’re an international student, not a tech evangelist. Use the systems that actually work.
The honest truth is that if you’re not using Apple Pay, Google Pay, or a physical contactless card, you’re making your life harder than it needs to be in Australia.
Tips That Actually Matter
After making every possible mistake with contactless payments, here’s what I’d tell my past self.
Set up your digital wallet as soon as you get your bank card. Don’t wait. Do it the same day. You’ll use it more than you expect, and having it ready prevents awkward moments at checkouts while you’re trying to set it up with a queue behind you.
Enable transaction notifications. Every major Australian bank lets you set up instant notifications for every transaction. Do this. You’ll catch fraudulent transactions immediately, and it helps you track spending. I get a notification within seconds of every payment, which has saved me from accidental double-charges a few times.
Carry your physical card as backup. Yes, mobile payments are great, but your phone will die at the worst possible moment. I keep my card in a thin cardholder in my backpack. It’s saved me multiple times.
Learn the $200 threshold. Under $200, tap and go. Over $200, you’ll need to verify with PIN or biometrics. This matters when you’re buying textbooks or electronics. If your purchase is $210, you might want to split it into two transactions to avoid the PIN step (though this feels a bit silly, people do it).
Don’t stress about double-tapping. The terminals are designed to prevent duplicate charges. If you tap twice by accident, it won’t charge you twice. The system recognises the duplicate attempt and ignores it.
Check your card’s international fees. If you’re using a card from your home country temporarily while waiting for your Australian account, check the foreign transaction fees. They can be 2-3% per transaction, which adds up fast. Get your Australian card sorted quickly.
Finally, if you’re curious about the difference between debit and credit cards for contactless payments, they work identically from a tap-and-go perspective. The difference is what account the money comes from.
Frequently Asked Questions
Do I need to unlock my phone every time I pay with Apple Pay or Google Pay?
For Apple Pay, yes, you need to authenticate with Face ID, Touch ID, or your passcode every time, even for small purchases under $200. For Google Pay, you only need to unlock your phone for purchases over $200. Under $200, just having your phone screen on is enough. This makes Android slightly more convenient but also slightly less secure.
Can I use Apple Pay or Google Pay on public transport in Australia?
Yes, absolutely. Melbourne’s tram, train, and bus system accepts contactless payments directly on myki readers. Sydney’s public transport works with Opal contactless. You just tap your phone like you would a transport card. The fare is charged to your default card, and you get all the same daily caps and discounts as regular transport card users. I haven’t bought a physical transport card in over a year.
What happens if my contactless payment goes through but the merchant says it declined?
This occasionally happens when there’s a lag between your bank approving the transaction and the merchant’s terminal displaying confirmation. Check your banking app immediately. If the charge appears there, show the merchant your transaction history on your phone. Usually, they’ll check their system and see it went through. If the charge appears but the merchant insists it didn’t, don’t pay again. Contact your bank later that day to sort it out.
Is tap and pay more expensive than using cash?
No. There are no additional fees for using contactless payments compared to cash. The money comes straight from your account at the same value. The merchant pays a small processing fee to the card network, but that’s not your problem. Some very small businesses might have a minimum purchase amount for card payments (usually $5-10), but this is becoming rare. I’ve never encountered a surcharge specifically for contactless payments in Australia.
Can international students use contactless payments from their home country bank cards?
Technically yes, if your card has contactless functionality and works internationally. But you’ll get hit with foreign transaction fees (typically 2-3% per transaction) and poor exchange rates. You can use it temporarily when you first arrive, but you should open an Australian bank account within your first week and switch to using that. Using your home country card for daily purchases will cost you hundreds of dollars in fees over a semester.
What do I do if the contactless terminal isn’t working?
First, try tapping again and keeping your phone or card steady near the reader for a few seconds. If that doesn’t work, ask the merchant if they have another terminal or if you need to insert your card instead. Some older terminals require you to insert the card and use your PIN for all transactions. If your card keeps failing everywhere, contact your bank because it might be deactivated or expired. This happened to me once when my card expired and the bank sent a new one, but I didn’t activate it properly.
Final Thoughts
Contactless payments in Australia aren’t just convenient. They’re basically expected. The faster you set up Apple Pay or Google Pay, the less you’ll stand out as someone who’s still figuring out the basics.
I remember being intimidated by all this tech when I first arrived. Cash felt safer somehow, more familiar. But once I got comfortable with tap-and-go payments, I realised I was just making my life harder for no reason. The system is designed to be simple, and after your first few transactions, it becomes automatic.
Set it up today. Add your card to your phone’s wallet. Try it at the campus café or your local Woolworths. You’ll mess it up the first time (everyone does), but by the third or fourth transaction, you’ll wonder why you ever carried a wallet.
If you’re still sorting out your finances in Australia, check out my guides on choosing the right bank account and understanding bank fees. And if you’re worried about budgeting while studying here, my breakdown of the cost of living in Melbourne might help you plan better.
Using contactless payments, Apple Pay, and Google Pay in Australia is one of those small things that makes daily life significantly easier. And trust me, you’ll need all the small wins you can get when you’re juggling study, work, and trying to figure out this whole Australian experience.
