Wearable Payment Devices Market
Wearable Payment Devices Market Analysis by Device Type (Fitness Trackers, Payment Wristbands, Smart Watches), by Technology (Barcodes, NFC Wearable Payment Devices, QR Codes, RFID Wearable Payment Devices), by Application & Regional Forecast 2022-2032
Global Wearable Payment Devices Market Outlook (2022-2032)
The global wearable payment devices market is projected to expand at an impressive CAGR of around 29% over the forecast period of 2022 to 2032, with an expected market value of US$ 171.38 Bn by the end of the said timeframe.
Market Size (2022)
US$ 13.43 Bn
Value CAGR (2022-2032)
Market Size (2032)
US$ 171.38 Bn
Key Providers of Wearable Payment Devices
The market has been progressing at a rapid pace in the past several years with advancements in the technology of payment methods. Growth of the market is attributed to increasing adoption of cashless transactions across the world.
Demand for Wearable Payment Devices Market from 2017 to 2021 Vs Market Forecast from 2022 to 2032
Historically, from 2017 to 2021, the use of wearable payment devices expanded at a CAGR of roughly 27%, with the major element helping this rise being their benefits over traditional payment methods, such as card and cash payments. Wearable payment gadgets, for example, provide no-contact payments, which is very useful in the current COVID-19 pandemic. Payment via smart devices or credit cards has been more popular in recent years due to the scarcity of wearable payment devices, but this is about to change.
Over the next ten years, the industry is expected to grow at a CAGR of about 29%. Because of rising hygiene concerns throughout the world, the primary reason impacting growth is a preference for contactless payments.
Rising Preference for Contactless Payment Options Spurring Uptake of Wearable Payment Devices
Wearable payment refers to payment transactions conducted using wearable devices that are connected with wireless technologies such as NFC and RFID. Wearable payment gadgets not only provide clients with a simple and contactless means of payment, but also assure safety and cleanliness, particularly in the aftermath of the COVID-19 pandemic.
Customers prefer cashless transactions for sanitary grounds due to the outbreak of COVID-19. Mastercard, for example, saw a 40% increase in contactless payments in the first quarter of 2020. Similarly, 60% of VISA users living outside the United States have utilized tap-to-pay technology for contactless payments.
As a result, various financial institutions, banks, and payment service providers have begun to adopt the digital payment agenda; nevertheless, in order to assure consumer satisfaction, these payment devices must be equipped with enhanced security measures.
Problems with Battery Consumption in Wearable Payment Devices May Impede Expansion
It is critical to recharge the gadget on a regular basis to guarantee its smooth operation; if the device becomes drained, it quickly disconnects the user. This may result in data insufficiency or a missing data cluster, affecting the payment process.
Wearable payment devices are becoming smaller than ever, thanks to better technology and form factors, necessitating the use of small-sized batteries to power payment capabilities.
Furthermore, when a wearable gadget is powered by complex operating systems, a large battery backup is required to assure continuous performance. The direct connection of the gadget to the cellular network, on the other hand, can quickly deplete the battery of wearable devices. It might have a negative influence on battery life.
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Integration of Smart Technologies to Pave Way for Enhanced Growth
NFC, RFID, and host card emulation (HCE) technologies are all used in various wearable and contactless payment devices. Many wearable device makers, including Apple, Samsung, and Huawei, are incorporating NFC and RFID technologies into their wearable devices and payment platforms, creating attractive potential for the wearable payment device industry to flourish.
Similarly, industry participants are implementing host card emulation technologies to provide customers with quick access to any goods by presenting product information on their smart devices.
Country Wise Analysis
How the Sales of Wearable Payment Devices Fare Across the United States?
United States led the industry in 2021, accounting for more than 31% of sales. The existence of important firms such as Apple, Inc., Google LLC, MasterCard, and Visa, Inc. has assisted the market's expansion.
Trends such as the increased reliance on technology for timing and monitoring, as well as the rising acceptance of wearable devices by fitness enthusiasts, are likely to fuel the market development throughout the forecast period. Furthermore, the development of smart gadgets with monitoring and payment functionalities is accelerating in the United States.
What are the Growth Prospects for Wearable Payment Devices Market in China?
Over the projection period, China is expected to be the fastest-growing market. The presence of a big population as well as increased demand for digital gadgets can be credited to the market's expansion.
Factors such as continuous development toward a cashless economy and advancements in payment technology are projected to boost market expansion. A CAGR of around 30% is projected for the Chinese market.
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Category Wise Insights
Why are Fitness Trackers Popular in Different Regions?
The market is divided into three sub-segments based on device type: fitness trackers, payment wristbands, and smart watches. Fitness trackers contribute the most, accounting for around 44% of the worldwide market.
With an increasing number of fitness enthusiasts, fitness trackers are predicted to become more popular in the near future, thanks to the vast choice of fitness gadgets and their multifunctional uses, such as incorporating mobile payments into their fitness trackers. Furthermore, fitness tracker manufacturers are improving their functionality by providing protection against fraud and theft during payment operations.
The global wearable payment devices market is highly fragmented with majority of players concentrated on product development and collaboration. Among the significant developments are:
- By releasing ConQR, a Mastercard QR on Card Solution, in 2021, Mastercard teamed with Bank of Baroda Financial Solution (BFSL) to deliver quick and seamless payment options for cardholders. This technology makes it possible for SMEs to accept cashless payments thanks to unique technology.
Key Segments Covered in Wearable Payment Devices Industry Report
By Device Type
- Fitness Trackers
- Payment Wristbands
- Smart Watches
- Contactless Point of Sale Terminals
- Near Field Communication (NFC Wearable Payment Devices)
- Quick Response (QR) Codes
- Radio Frequency Identification (RFID Wearable Payment Devices)
- Wearable Payment Devices for Festivals & Life Events
- Fitness Wearable Payment Devices
- Healthcare Wearable Payment Devices
- Retail Wearable Payment Devices
- Wearable Payment Devices for Transportation
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