Wearable computing has so far focused mostly on systems employing small displays, or no displays at all. In contrast, we explore the possibilities of a smart handbag that functions as a wearable public display, focusing on user perceptions of different design concepts. Our prototype smart handbag explores functionalities such as: changing the bag's appearance to match clothing, displaying textual information, creating a see-though perception enabling items inside the bag to be seen, and enabling interaction with items inside the bag. We report on the findings from a wizard-of-Oz based user study, which included the users walking in public with the smart handbag. The smart handbag concepts were positively received, especially from the utilitarian point of view, but issues related to privacy were raised. Key insights are e.g. the creation of a 'handbag mode' for smartphones placed within the smart handbag and the importance of evaluating such wearables in real-world contexts.