Global Wearable Payments Devices Market By Type (Fitness Tracker, Payment Wristbands and Smart Watches), By Technology (Barcodes, Near Field Communication (NFC), Quick Response (QR) Codes, Contactless Point of Sale (POS) Terminals and Others), By Application (Retail, Transportation, Festival & Life Events, Fitness, Healthcare and Others), By Region, Industry Analysis and Forecast, 2020 - 2026
The Global Wearable Payments Devices Market size is expected to reach $42.9 billion by 2026, rising at a market growth of 27.2% CAGR during the forecast period. The safe and secure payment method offered to the consumers for their purchase of products or services through the advanced integrated technology in their wearable devices is referred as Wearable payments.
This method provides vendors and retailers to go with a more secure and error-free payment method and hence, also known as tap-and-go payment method by many retailers and organizations. Moreover, several banks and financial institutions are offering wearable payment options for widening their customer base around the world while delivering better convenience in outdoor shopping. Additionally, the adoption of contactless payments and wearable payments has increased globally during recent years, owing to the increasing adoption of smartphones and ease in transactions compared to the traditional banking payment methods.
The growth of the market is attributed to the rising demand for Host Card Emulation (HCE) and the increasing adoption of cashless transactions. HCE helps mobile or wearable devices to allow card imitation on NFC-enabled devices without depending on the connection to an authenticated element. Moreover, the rising demand for Wearable Payments Devices is due to their fast payment feature, which is estimated to boost the market growth during the forecast period.
There are many e-banking platforms that are adopting Wearable Payments Devices. These e-banking platforms are aiming to integrate the Near Field Communication (NFC) technology into their transaction operations that facilitate smooth payments. Moreover, the reducing costs for implementing NFC technology are propelling the demand for the technology. This technology is broadly used in businesses to transfer data from their devices to several contactless payment terminals like NFC tags and smartphones.
Based on Type, the market is segmented into Fitness Tracker, Payment Wristbands and Smart Watches. The segment of fitness tracker leads the market in 2019. These fitness trackers are estimated to propel the market due to the rising use of a wide range of fitness devices and a growing number of fitness enthusiasts around the world. Several vendors have initiated combining mobile payments into their fitness trackers. Furthermore, customers are broadly choosing fitness trackers due to their expanded safety feature that secures them from frauds and identity thefts during the payment processes.
Based on Technology, the market is segmented into Barcodes, Near Field Communication (NFC), Quick Response (QR) Codes, Contactless Point of Sale (POS) Terminals and Others. The contactless Point of Sale (POS) terminals category is expected to record significant growth during the forecast period. The integration of NFC and IoT-based contactless payment features into wearable devices is estimated to boost the growth of the contactless POS terminals category. Vendors like Samsung Electronics and Apple, Inc. have brought on their own contactless POS terminals, consequently leading this category.
Based on Application, the market is segmented into Retail, Transportation, Festival & Life Events, Fitness, Healthcare and Others. The retail category has dominated the market in 2019. This category’s growth is attributed to the rising demand for cashless payments in local shops, markets, and e-commerce. Moreover, various retailers around the globe are aiming for creating awareness among the customers about contactless payment technology that will help them in promoting the usage of Wearable Payments Devices in the retail industry.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. The Asia Pacific is expected to establish itself as the fastest-growing market in the region during the forecast period. The growth of the market is attributed to the existence of a huge population and rising demand for digital devices in the region. There are some factors like steady growth in building a cashless economy and conversion in payments technology that is estimated to propel the growth of the market. The rising number of new market players in the market is also an important trend in the market.
The major strategies followed by the market participants are Product Launches and Partnerships. Based on the Analysis presented in the Cardinal matrix; Apple, Inc., Google, Inc., and Samsung Electronics Co., Ltd. are the forerunners in the Wearable Payments Devices Market. Companies such as Barclays, Inc. Mastercard, Inc., Xiaomi Corporation, Visa, Inc., and Nymi, Inc. are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Apple, Inc., Thales Group S.A. (Gemalto NV), Google, Inc., Mastercard, Inc., Samsung Electronics Co., Ltd. (Samsung Group), Xiaomi Corporation, PayPal Holdings, Inc. (eBay), Visa, Inc., Nymi, Inc., and Barclays PLC.
Recent strategies deployed in Wearable Payments Devices Market
Partnerships, Collaborations, and Agreements:
Dec-2020: Mastercard entered into a partnership with MatchMove, a Singapore based Banking-as-a-Service provider, and Tappy Technologies, a world-leading wearable payment integrator. In this partnership, they launched tokenization into a small, flexible chip that could be attached to a range of battery-less wearables and accessories like watchstraps or keyrings, which turns them into safe contactless payments devices.
Oct-2020: Nymi came into partnership with HID Global, a worldwide leader in trusted identity solutions. Under this partnership, the companies aimed to bring next-generation Seos credential technology to customers of Nymi’s Version 3.0 workplace wearable wristband. Seos technology allowed the Nymi Band 3.0 to be utilized for applications ranging from safe intelligent print collection and social distancing and contract tracing to contractor and visitor management, canteen and vending machine payment, and secure remote working.
Jun-2020: Xiaomi partnered with Mastercard, an American multinational financial services corporation. Under this partnership, Xiaomi introduced Mi Smart Band 4 NFC, a special edition of the fitness band with contactless payment technology.
Jun-2020: Xiaomi collaborated with NXP, a Dutch-American semiconductor manufacturer. This collaboration allowed Xiaomi to use NXP’s mWallet 2Go technology to allow consumers in Europe to make payments by using its low-cost Mi Smart Band 4 wearable.
Feb-2020: Barclays signed a multiyear partnership agreement with Visa, an American multinational financial services corporation. The partnership aimed to drive innovation and product development as well as facilitate international expansion in the market.
Nov-2019: Mastercard came into partnership with Tappy Technologies, a world-leading wearable token service provider. The partnership aimed to provide contactless payments through fashion wearables by implementing their respective technologies into a range of accessories, beginning with analogue watches by Timex Group.
Feb-2019: Mastercard formed a collaboration with Fidesmo, a Swedish tech company. This collaboration enabled consumers who opt for traditional-looking, analog wearables to involve seamless and invisible technology in their devices. The collaboration helped Mastercard to drive innovation as a front-runner in paytech and Fidesmo helped Mastercard to provide more user-friendly and safe contactless experiences to customers.
Acquisition and Mergers:
Jan-2021: Google acquired Fitbit, a smart wearable company. The company maintains access to Android APIs that allows devices like fitness trackers and smartwatches to collaborate with Android smartphones, and continue to enable Fitbit users to select to connect to third-party services to sync their favorite health and fitness apps to the Fitbit account.
May-2016: Fitbit took over Coin’s wearable payments platform and the intellectual property. This acquisition allowed Fitbit to combine near-field communications (NFC) payment capability into future Fitbit devices. After the integration of Coin’s technology, Fitbit offered payment features through their devices.
Product Launches and Product Expansions:
Jun-2020: Xiaomi unveiled Mi Band 5, the variant with support for NFC. The band comes in four different strap color options including Black, Green, Yellow, and Red.
Apr-2020: Fitbit introduced its latest fitness wristband with contactless payments as a standard feature, Fitbit Charge 4. The wristband comprises the company’s prepaid wallet baked in. The chip works with cards from nearly 500 issuers in 44 countries and 10 transit systems globally.
Nov-2019: Xiaomi introduced its first smartwatch dubbed the Mi Watch. The smartwatch allows cellular connectivity, GPS, Wi-Fi, Bluetooth, and NFC for payments. The device carries out the firm’s homegrown wearable operating system MIUI for Watch, based on Google’s Wear OS.
Aug-2019: Barclays launched an online store. It provides users of its Pingit mobile payments service a broad range of wearable payments devices that include watches, wristbands, jewellery, and key fobs. Through this e-store, customers can easily browse and buy a wide selection of contactless payment devices, all in one place.
Mar-2019: Barclays is launching Wearable Payments Devices. These devices help in operating its mobile payment brand, Pingit, which allows users to access simple ways to pay. It is also launching new features enabling Pingit to improve the wearable experience.
Mar-2019: Barclays announced the integration of the bPay app with another of its own app Pingit. This integration added strength to its mobile payment product. It helped users to segment their accounts into jars which allow them to plan their expenses and investments for specific uses, such as a holiday or providing pocket money to a child.
Scope of the Study
Market Segments covered in the Report:
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