From January 1, 2025, certain debit cards stored in mobile wallets may stop functioning due to a significant industry-wide update. This update affects how EFTPOS transactions operate through mobile wallets like Apple Pay and Google Pay. Here’s everything you need to know and how to resolve the issue.
The Reason for the Update
Australian Payments Plus (AP+), in partnership with the Australian Banking Association (ABA), introduced a technical update to some debit cards in digital wallets. This update ensures continued EFTPOS functionality for transactions made using mobile wallets from January 1, 2025.
On December 18, 2024, AP+ and the ABA informed customers about this update. While most of the 19.1 million debit cards in digital wallets will update automatically, about 60,000 cards require manual intervention.
The update impacts customers who added their debit cards to mobile wallets before July 2023, use EFTPOS-only cards, or have enabled the option to send transactions via EFTPOS.
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Who Is Affected?
The update applies to a small number of consumers with specific criteria:
- Those who added their debit cards to digital wallets before July 2023.
- Users who activated the option to send transactions through EFTPOS.
- Owners of EFTPOS-only debit cards.
How to Fix the Issue
Customers affected by this update should remove and re-add their debit cards to their mobile wallets. Banks have already reached out to most impacted customers with instructions.
For Apple users, follow these steps to remove and re-add your debit card:
- Open the wallet app and select the relevant card.
- Tap the three dots in the upper-right corner.
- Choose “card details” and select “remove card.”
- To re-add the card, tap the “+” sign in the wallet app and follow the prompts.
For those who use Android, the process is nearly identical. Remove the card and re-add it through your wallet app.
According to ABA CEO Anna Bligh, resolving this issue takes only a few minutes. “It’s a straightforward process that will only take a matter of minutes and will ensure your debit card can continue to make payments into the new year,” she said.
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Why Act Now?
Failure to update your digital debit card may result in transaction disruptions starting January 1, 2025. The update comes during a busy time of year for payments, which adds urgency to completing this process.
Lynn Kraus, CEO of AP+, said the update is a precautionary measure. “We are acting now out of an abundance of caution as it is an extremely busy time of year for payments, and for those who won’t be able to complete a payment, it will matter,” she said.
What About Physical Cards?
Physical debit cards and credit cards in digital wallets are not affected by this update. Only specific debit cards stored in digital wallets require manual updates.
If you haven’t received instructions from your bank but suspect your debit card may be affected, contact your bank directly for confirmation.
Addressing Concerns About Suspicious Messages
Messages from banks about this update may seem suspicious to some customers. AP+ CEO Lynn Kraus advises customers to verify the authenticity of such messages directly with their banks.
“I urge anyone who has received a message from their bank to update the debit card on their mobile wallet to do it today,” Kraus said.
Affected Customers Must Act Quickly
The update impacts only a small percentage of users, but timely action is essential to avoid payment disruptions. Most of the 19.1 million EFTPOS cards in digital wallets will update automatically, but the 60,000 active cards requiring manual updates represent a notable exception.
Banks have been proactive in notifying affected customers, but some users may still need to act. Removing and re-adding the affected debit card ensures seamless payment functionality for the new year.
Preparing for the Future of Digital Wallets
This update highlights the growing reliance on digital wallets and the importance of maintaining their functionality. As more Australians adopt digital wallets for everyday transactions, staying informed about updates is crucial.
The ABA and AP+ remain committed to ensuring that consumers experience uninterrupted payment services. “This update will only impact a small number of customers, and banks will be reaching out to those customers who need to take action,” Anna Bligh said.
Conclusion
If your debit card in a digital wallet stopped working on January 1, 2025, an essential update may be the reason. Ensure your card is functional by removing and re-adding it to your digital wallet.
Act promptly to avoid payment disruptions and ensure a smooth transition into the new year. For further assistance, contact your bank directly and follow their guidance.
By staying proactive, you can continue enjoying the convenience and efficiency of digital wallets without interruption.
