I didn't know I could do that, so I just gave it a try.
First instinct, double tap the side button to open Wallet. Couldn't rearrange the cards there. So,I opened Settings app and couldn't rearrange the cards there. Finally, I opened the Wallet app and found I could rearrange cards there, though there's no visual indicators that I can. I accidentally changed my default card on the first attempt.
The fact that the double-click shortcut opens the Wallet app in a functionally limited but visually identical mode is terrible UI design.