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Except that you have to trust the Woolworths app with your credit card details in order to be able to use Everyday Pay. No thank you!.
Apart from the process of registering your card, the app won't actually store your credit card details. The way these things work is you provide your card details and their server talks to the payment processor server and gets a token. That token is specific to your card to be used to pay Woolies.
So if you're ok paying at the checkout with your credit card, the risk is the same for all intents and purposes.