Wearable Payment Devices Market on Track for 29% CAGR, Reaching US$ 171.38 Billion

Over the projection period of 2022 to 2032, the worldwide wearable payment devices market is likely to grow at an excellent compound annual growth rate (CAGR) of over 29%, with an estimated market value of US$ 171.38 billion by the conclusion of the aforementioned timeframe.

Thanks to developments in payment method technology during the past few years, the industry has been expanding quickly. The global adoption of cashless transactions is credited with driving industry growth.

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The usage of wearable payment devices increased historically at a CAGR of almost 27% between 2017 and 2021. Their advantages over conventional payment methods, such card and cash payments, were a key contributing factor in this rise. For instance, wearable payment devices enable no-contact payments, which is rather helpful given the COVID-19 epidemic at the moment. Due to the lack of wearable payment devices, credit card and smart device payments have become increasingly common in recent years. However, this is set to change.

The industry is predicted to expand at a CAGR of almost 29% during the next 10 years. Preference for contactless payments is the main factor affecting growth, as hygiene concerns become more widespread globally.

Key Providers of Wearable Payment Devices

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

Payments made via wearable devices that are linked to wireless technologies like NFC and RFID are referred to as wearable payments. In addition to offering customers a straightforward and contactless method of payment, wearable payment devices also ensure cleanliness and safety, especially in the wake of the COVID-19 outbreak.

Because of COVID-19, customers prefer cashless purchases for hygienic reasons. For instance, Mastercard had a 40% surge in contactless transactions during the initial quarter of 2020. In a similar vein, 60% of VISA holders who are not US citizens have made contactless payments using tap-to-pay technology.

Consequently, a number of banks, financial institutions, and payment service providers have started implementing the digital payment agenda; nevertheless, these payment devices need to be outfitted with improved security features to ensure customer satisfaction.

Issues with Battery Usage in Wearable Payment Devices Could Prevent Growth

To ensure smooth functioning, the device must be regularly recharged; if it runs out of power, it will immediately disconnect the user. This might impact the payment process by causing data insufficiency or a missing data cluster.

Better form factors and technology have allowed wearable payment gadgets to get smaller than before, which means less batteries are needed to power the payment features.

Furthermore, a sizable battery backup is necessary to ensure uninterrupted operation when a wearable device runs sophisticated operating systems. Conversely, wearable device batteries run out fast when the device is directly connected to the mobile network. It might negatively impact the lifespan of the battery.

Using Smart Technology to Open Up New Opportunities for Growth

Numerous wearable and contactless payment devices employ NFC, RFID, and host card emulation (HCE) technologies. The wearable payment device market has a lot of potential to grow since several wearable device manufacturers, including Apple, Samsung, and Huawei, are integrating NFC and RFID technologies into their wearable devices and payment platforms.

In a similar vein, businesses are using host card emulation technology to provide consumers instant access to any items by displaying product details on their smartphones.

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Competitive Landscape

The majority of participants in the extremely fragmented worldwide market for wearable payment devices are focused on product development and cooperation. Among the noteworthy advancements are:

In order to give cardholders quick and easy payment choices, Mastercard partnered with Bank of Baroda Financial Solution (BFSL) to release ConQR, a Mastercard QR on Card Solution, in 2021. SMEs may now take cashless payments because of this technology's special features.

Key Segments Covered in Wearable Payment Devices Industry Report

• By Device Type
o Fitness Trackers
o Payment Wristbands
o Smart Watches
• By Technology
o Barcodes
o Contactless Point of Sale Terminals
o Near Field Communication (NFC Wearable Payment Devices)
o Quick Response (QR) Codes
o Radio Frequency Identification (RFID Wearable Payment Devices)
• By Application
o Wearable Payment Devices for Festivals & Life Events
o Fitness Wearable Payment Devices
o Healthcare Wearable Payment Devices
o Retail Wearable Payment Devices
o Wearable Payment Devices for Transportation
o Others

rapid expansion underscores the increasing consumer preference for convenient, contactless payment solutions integrated into everyday wearable items such as smartwatches, fitness trackers, and rings. The demand is fueled by advancements in technology, rising adoption of digital wallets, and the need for secure, fast, and seamless transactions.

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This release was published on openPR.