The bank launched Google Pay on April 6 after last month offering Apple Pay.

CEO, Geoff Seccombe, said the digital wallet services are part of the bank's ongoing product development and innovation strategy, to give its customers more ways to bank and make payments.

He said the new services were about giving the bank's customers more choice rather than pushing them into banking and shopping in particular ways.

For many people, their phones are their wallets, and much more, so we're responding to meet these needs," Mr Seccombe said.

"But we are maintaining our branch network and other services - having re-opened our Lake Macquarie branch in Edgeworth in December last year," he said.

"The Mutual Bank is about using technology to be a leader among member-owned financial institutions in giving our members the best possible banking experience."

Mr Seccombe said Google Pay and Apple Pay are easy to set up and have appropriate security and privacy measures. He said COVID-19 has made contactless payments even more important.

"Google Pay and Apple Pay can be a great back-up way to pay if you don't happen to have your Mutual Visa Card with you."

"You don't need to hand your card to someone else or touch buttons, so it is very COVID safe."

"Card numbers are encrypted and not stored on the device or on Google or Apple servers."

"Our staff can easily help members set up either digital payment option."

Google Pay was launched as Android Pay but rebranded in 2018. It allows people to make, secure, in store, in app, and online payments from a credit card or debit card account, using an android phone, rather than the physical card.

The May 2020 Roy Morgan Digital Payments Report found 10.8 per cent of Australians use non-bank contactless mobile payment services such as Apple Pay and Google Pay, up from 7.1 percent in 2019.

The Mutual Bank is member-owned and has been serving Hunter people since 1888. It has branches in Dungog, East Maitland, Edgeworth, Maitland, Mayfield, Rutherford, and Raymond Terrace.