Using a device that is worn on the body, such as a smartwatch, fitness band, or other type of wearable technology, consumers can conduct transactions using a wearable payment device. Because of how practical, safe, and simple to use these devices are, people are choosing them more frequently.
Contactless payments are made possible by wearable payment devices using near-field communication (NFC) technology. Users only need to hold their wearable gadget close to a payment terminal for the transaction to be finished quickly. To guarantee that transactions are safe and confidential, certain devices also include extra security features like biometric verification or password protection.
Wearable payment gadgets are anticipated to grow in popularity as technology progresses since new functions and features are constantly being added to them. A wearable payment device might be the ideal choice for you if you're a fitness enthusiast, a fashion-conscious shopper, or simply seeking a more practical and secure way to make purchases.
The Global Wearable Payment Device Market size was valued at 48.84 billion USD in 2022 and is projected to reach 135.47 billion USD by 2030 with a CAGR of 13.6% in the forecast period of 2023-2030. Wearable payment devices, such as a wristwatch or a fitness tracker, are a form of contactless payment technology that may be worn on the body. The following factors are propelling the wearable payment device market:
Convenience: Wearable payment systems provide a simple and handy payment option that frees consumers from carrying cash or credit cards.
Security: To ensure that only the authorized user may make payments, wearable payment devices use secure authentication techniques like biometric authentication.
Contactless technology: Wearable payment gadgets use contactless technology, which has grown in popularity as a means of reducing physical contact and lowering the risk of infection during the COVID-19 epidemic.
Growing acceptance of mobile payments: The emergence of the Internet of Things (IoT) and the popularity of mobile payments have opened the way for wearable payment devices as a logical progression of these technologies.
Fashion and style: Wearable payment gadgets can also be made to seem chic and sophisticated, luring customers who value both practicality and beauty.
Apple Inc., Samsung Electronics Co. Ltd., Garmin Ltd., Xiaomi Corporation, Google LLC, Visa, Inc., Barclays, PayPal Holdings, Inc., Mastercard Inc., Fitbit (Google), and Tappy Technology Ltd. are some of the prominent companies competing in the global wearable payment devices industry.
Samsung Electronics Co. Ltd. unveiled the Galaxy Watch4 and Galaxy Watch4 Classic in August 2022. They are the first smartwatches to come with the new Wear OS Powered by Samsung, developed in partnership with Google, and they have One UI Watch, Samsung's most user-friendly user interface to date. The Galaxy Watch4 Series offers a more fluid and connected user experience than ever before thanks to enhanced hardware performance.
Garmin International, Inc., a division of Garmin Ltd., unveiled new band designs for its popular vvofit jr. 3 lines of children's activity trackers1 in May 2022. With a fun Grogu band or The Mandalorian band, kids can keep track of their daily exercise.
The Global Wearable Payment Device Market is segmented based on Device type, Technology Type, and Applications.
Fitness trackers, smart watches, payment wristbands, and smart rings are the various gadget categories that make up the market. The global wearable payment devices market is expanding as more developing countries switch from traditional to digital payment systems, and as mobile commerce becomes more popular worldwide.
It is segmented into near-field communication technology (NFC), radio frequency identification (RFID), QR, and barcode categories based on technology. In 2020, the barcode market controlled and generated the largest portion of worldwide revenue. Retailers are putting more effort into reducing friction at the register and enhancing the whole shopping experience. The barcodes on wearable payment devices are read by barcode scanners that use scan-and-go technology. Customers may easily scan their purchases as they shop thanks to this technology. Retailers are also able to do away with the necessity for a conventional, static point-of-sale thanks to the barcode technology.
By application, it is divided into retail and grocery stores, leisure facilities, dining establishments, and medical facilities and pharmacies. Additionally, the market is expected to grow as contactless payment systems become more widely accepted at restaurants, petrol stations, and retail outlets.
The market was headed by North America, which also accounted for the largest market share of worldwide revenue. The expansion of the market can be ascribed to the presence of major players in the area, including Apple, Inc., Google LLC, Mastercard, and Visa, Inc. Over the course of the forecast period, trends like the escalating reliance on technology for timing and tracking as well as the rising adoption of wearable technology by fitness enthusiasts are also anticipated to fuel regional market expansion. Furthermore, the production of smart devices with tracking and payment capabilities is significantly increasing in North America.
The Asia Pacific market for wearable payment devices is predicted to grow at a significant CAGR during the forecast period. The advantages of wearable payment devices, the rise in disposable money, and the increase in digitalization are credited with this expansion. The demand for wearable payment devices is anticipated to rise as a result of these causes. Customers can afford wearables because manufacturers in China and India sell them for cheap. Many global players have their wearables manufactured and put together by regional manufacturers before branding them with their names.
The wearable payment devices market is experiencing significant growth, driven by the increasing adoption of contactless payments, the growing trend towards cashless transactions, and the convenience and security offered by wearable payment devices. The market is expected to continue to expand in the coming years, with advancements in technology, the rise of mobile payments, and the growing demand for smart wearables. However, the market also faces challenges such as the need for interoperability between different devices and payment systems and concerns around data security and privacy. Despite these challenges, the wearable payment devices market holds immense potential, and stakeholders in the industry are expected to invest in R&D to further enhance the user experience, increase security, and expand the market reach. As the adoption of wearable payment devices continues to increase, it is clear that this technology is reshaping the way we make payments, and it is here to stay.