Wearable Payments Devices Market

The global wearable payments devices market size was valued at around USD 15.49 billion in 2022 and is expected to reach USD 151.11 billion by 2031, expanding at a CAGR of 28.8% during the forecast period, 2023–2031. The growth of the market is anticipated to the rising acceptance of digital transactions.

Wearable payment as a method of financial transaction that provides retailers and vendors to operate effective error-free payment and secure method. The method is also referred to as tap-and-go payment method by many organizations and retailers.

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Furthermore, various financial institutions and banks are providing wearable payment offers for expanding their customer base across the globe while offering enhanced convenience in outdoor shopping. In addition, the acceptance of wearable payments and contactless payments has increased worldwide in the recent years due to the increasing penetration of smartphones and ease in transactions compared to the conventional banking payment procedures.

Host card emulation is able wearable devices to permit card imitation on Near Field Communication (NFC)-enabled devices without permission of access to an authorization factor. Various e-banking firms are also adopting wearable or mobile payment devices. These firms are focusing on amalgamation of the NFC technology into their transaction processes, which enhances transparent payments.

The COVID-19 pandemic outbreak is proven to be a major factor that drives the market growth during the forecast period. During the pandemic, customers across the world opted for contactless payments to avoid risks of contracting or spreading the virus. However, high cost of the devices, limited battery life of the devices, and security concerns remain the major factors hindering the market expansion.

The expensive costs of devices affect the ability of producers to introduce their products in the market, therefore, that has resulted to limited production. These payment devices are expensive, which limits numerous consumers from buying these devices.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing demand for mobile or wearable payment devices due to their prompt payment capability is estimated to boost the market growth.

• Reducing costs for deploying NFC technology is promoting the rise in demand for the technology. This is expected to be a key deriver for the market growth.

• Expeditious growth in the use of contactless payments is encouraged by the instructions of digital payment. This is predicted to provide growth opportunities of th market in the coming years.

• Various governments across the world are making efforts for increasing the adoption of payment-enabled devices, which is expected to propel the market growth during the forecast period.

• Rising competition in the market and low awareness about the product are key factors limiting the market growth during the forecast period.

Scope of Wearable Payments Devices Market Report                               

The report on the global wearable payments devices market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Wearable Payments Devices Market Segment Insights

Based on device types, the global wearable payments devices market is segmented into payment wristbands, fitness tracker, and smart watches. The fitness tracker segment is expected to account for a key share of the market during the forecast period due to increasing use of a variety of fitness devices and an increasing number of fitness enthusiasts across the globe.

However, the smart watches segment is anticipated to expand at a rapid pace during the forecast period owing to rising focus of manufacturers on launching low-priced smart watches.

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In terms of technology, the market is differentiated into contactless point of sale terminals, barcodes, quick response codes, near field communication, and radio frequency identification.

The barcodes segment is estimated to expand at a robust growth rate during the projected period as retailers are focusing on eliminating friction at checkouts and enhancing the customer experience. Meanwhile, the point of sale terminals segment is anticipated to register a high growth rate in the coming years due to introduction of NFC and IoT-based contactless payment capabilities into wearable devices.

On the basis of applications, the global wearable payments devices market is divided into fitness, festival & life events, retail, healthcare, transportation, and others. The retail segment is projected to expand at a considerable CAGR during the forecast period due to increasing demand for cashless payments in markets, local shops, and e-commerce.

On the other hand, the festival & life events segment is expected to account for a key market share during the projected period as event managers are focusing on accepting contactless payment technology to cut off long queues on the gates or entrances.

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In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to account for a key share of the market during the forecast period owing to growth in technology for tracking, timing, and rising acceptance rate of wearable devices by fitness enthusiasts.

The market of Asia Pacific, however, is expected to constitute a major share of the market in the coming years due to rising demand for digital devices and presence of a large population in the region.

Segments

The global wearable payments devices market has been segmented on the basis of

Device Types

• Payment Wristbands
• Fitness Tracker
• Smart Watches

Technology

• Contactless Point of Sale Terminals
• Barcodes
• Quick Response Codes
• Near Field Communication
• Radio Frequency Identification

Applications

• Fitness
• Festival & Life Events
• Retail
• Healthcare
• Transportation
• Others

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Barclays PLC
• Apple, Inc.
• Google LLC
• Gemalto NV
• Nymi
• Mastercard
• Samsung Electronics
• Visa Inc.
• PayPal Holdings Inc.
• Wirecard

Competitive Landscape

Key players competing in the global wearable payments devices market are Barclays PLC; Apple, Inc.; Google LLC; Gemalto NV; Nymi; Mastercard; Samsung Electronics; Visa Inc.; PayPal Holdings Inc.; and Wirecard.

The main market players are continuously engaged in various business development activities such as mergers and acquisitions, research and developments, investments for innovative products, and collaborations. For instance, Jawbone launched the NFC chip-enabled UP4 fitness band in collaboration with American Express in April 2016.