Chicago, Oct. 27, 2022 (GLOBE NEWSWIRE) -- The report "Wearable Payment Device Market by Device Type (Smart Watches, Fitness Trackers), Technology (NFC, RFID), Sales Channel, Application (Retail/Grocery Stores, Restaurants, Entertainment Centers), and Geography (2021-2026)", Wearables devices are small electronic devices that are worn by users on their bodies, which assist them with mobile computing and wireless networking. Wearable payment devices refer to rings, bracelets, and smart watches, which can be integrated with NFC and RFID tags, among others and are used for contactless payments. To work, wearable payment devices must be linked to debit or credit cards. The appeal of wearable payment devices for users is due to the use of items worn on the body to pay for goods and services, thus boosting the adoption of contactless payments.
The global wearable payments devices market size is projected to grow from USD 43.0 billion in 2021 to USD 82.0 billion by 2026 at CAGR of 13.6% during the forecast period.
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Top 11 Key Market Players in Wearable Payment Device Industry
The wearable payments device players have implemented various types of organic as well as inorganic growth strategies, such as product launches, product developments, and acquisitions to strengthen their offerings in the market.
- Apple Inc. (US)
- Samsung Electronics Co., Ltd. (South Korea),
- Fitbit Inc. (US),
- Garmin AB (Switzerland),
- Xiaomi Corporation (China) ,
- Google LLC (US),
- Tappy Technologies Ltd. (US),
- Barclays PLC (UK),
- VISA Inc. (US),
- PayPal Holding Inc. (US), and
- Mastercard, Inc. (US) are some of the major players in market.
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132 – Tables
51 – Figures
207 – Pages
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Wearable Payments Device Market Dynamics
Driver: Growing inclination toward contactless payment methods due to hygiene concerns amid COVID-19
Wearable payment includes payment transactions carried out through wearable devices integrated with wireless technologies such as NFC and RFID.
Wearable payment devices not only offer customers a convenient and contactless mode of payment but also ensure safety and hygiene, especially after the outbreak of COVID-19. Due to the spread of COVID-19, customers prefer doing cashless transactions for hygiene reasons. For instance, Mastercard witnessed a surge of 40% in contactless payments in the first quarter of 2020. Likewise, 60% of VISA users who live outside the US have also used tap-to-pay technology for contactless payments.
Therefore, several financial institutions, banks, and payment service providers have started accepting the digital payment agenda; however, to ensure customer satisfaction, they have to apply stronger security measures to these payment devices.
Restraint: Battery drain issues in wearable payment devices
It is essential to regularly recharge the device to ensure its smooth operation; if the device gets discharged, it immediately disengages the user. This may lead to the inadequacy of data or missing data cluster, which, in turn, affects the payment process.
With improved technologies and form factors, wearable payment devices are getting smaller than ever, which creates the need for small-sized batteries to power payment functionality. Moreover, when a wearable device is powered by advanced operating systems, it requires a high battery backup to ensure uninterrupted performance. However, the direct connectivity of the device to the cellular network can quickly drain the battery of wearable devices. It may have an adverse impact on battery life.
Opportunity: Increasing adoption of advanced technologies, such as NFC, RFID, and host card emulation, in wearable payment devices
NFC, RFID, and host card emulation (HCE) technologies are integral parts of different wearable and contactless payment devices.
Many wearable device manufacturers such as Apple, Samsung, and Huawei are integrating NFC and RFID technologies into their wearable devices and payment platforms, thereby offering lucrative opportunities for the growth of the wearable payment device market.
Similarly, market players are adopting host card emulation technologies for providing customers easy access to any products by displaying product information on their smart devices.
Challenge: Security concerns related to wearable payment devices
Wearable devices interact with several elements in the ecosystem on a wider scale, which includes internet services, multiple devices such as embedded chips, mobile apps, computing apps, and many others.
Wearables payment devices have become ubiquitous in grocery stores, restaurants, hospitals/pharmacies, and entertainment centers due to their convenience, fast transaction speed, along with their ability to capture and analyze complex data in real time. However, companies using wearable payment devices are putting themselves at the risk of a data breach.
The interconnectivity of devices and the use of cellular networks make them vulnerable to attacks. However, companies can resolve these security-related challenges in a short span of time by updating their software and devices.
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