You don't need the new one. The new one protects you from fraudulent charges, but isn't required.
Also, the new one is actually two devices-you have to choose. One is like the old swipe, it just has two slots, one for chip cards, one for the old swipe. It plugs into the headphone jack.
The other device is a flat square disk that is wireless. It does chip cards and apple pay. You could also use the old swipe if the card did not have a chip.
