Wearable Payments Devices Market: Festival And Life Events Segment Is Anticipated To Witness Significant Growth
Wearable Payments Devices Industry Overview
The global wearable payments devices market size is expected to reach USD 80.39 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 29.8% from 2021 to 2028. Over time, payment systems have adapted to suit the needs of customers, such as increased convenience and reduced time while making payments. The growing popularity of contactless payment technology, coupled with the increasing adoption of wearable devices, such as smartwatches for contactless payments, is expected to fuel the market growth over the forecast period.
Wearables are gadgets or mobile phones that are worn by users to indirectly or directly interact with the device. Majorly used devices are smartwatches, fitness or health trackers, and wristbands. In terms of functionality, there are numerous wearables that are used in the commercial market, and the low entry barriers have enabled the high proliferation of payments devices.
Digitization in banks is expected to continue gaining traction over the forecast period as banks are now focusing on connecting card management systems with the token service providers. The increasing adoption of contactless payment models in the banking sector is further expected to drive the market. Furthermore, numerous players are focusing on creating reliable and secure wearable devices for consumer use, thereby creating growth opportunities for the market.
The COVID-19 pandemic is expected to positively impact market growth over the forecast period. The increasing adoption of cashless transactions in the time of the pandemic is expected to influence the adoption of wearable payments devices over the forecast period. Wearable devices offer users a convenient form of payment to make transactions through their stored payment credentials, thus enabling issuers to build brand loyalty among their users.
Wearable Payments Devices Market Segmentation
Grand View Research has segmented the global wearable payments devices market based on device type, technology, application, and region:
Based on the Type Insights, the market is segmented into Fitness Tracker, Payment Wristbands, and Smart Watches.
- The fitness tracker segment led the market and accounted for more than 43.0% share of the global revenue in 2020. Fitness trackers are expected to gain momentum owing to the increasing use of a variety of fitness devices and an increasing number of fitness enthusiasts across the globe.
- The smartwatchessegment is anticipated to witness the highest growth over the forecast period. The growing focus of vendors on launching low-priced smartwatches is expected to boost the adoption of smartwatches over the forecast period.
Based on the Technology Insights, the market is segmented into Barcodes, Contactless Point of Sale (POS) Terminals, Near Field Communication (NFC), Quick Response (QR) Codes, and Radio Frequency Identification (RFID).
- The barcodes segment dominated the market and accounted for more than 30.0% share of the global revenue in 2020. Retailers are focusing on removing friction at checkouts and improving the overall customer experience. Wearable payments devices are encoded with barcode scanners that incorporate scan-and-go technology.
- The contactless Point of Sale (POS) terminals segment is anticipated to witness the highest growth over the forecast period. According to Berg Insight AB, by the end of 2022, nearly eight out of ten POS terminals installed by retailers or vendors across the globe will be able to receive NFC-enabled contactless payments.
Based on the Application Insights, the market is segmented into Festival & Life Events, Fitness, Healthcare, Retail, Transportation, and Others.
- The retail segment led the market and accounted for more than 29.0% share of the global revenue in 2020. The segment growth can be attributed to the increasing demand for cashless payments in markets, local shops, and e-commerce.
- The festival and life events segment is anticipated to witness significant growth over the forecast period. Festival and life event managers are focusing on adopting contactless payment technology to reduce long queues on the gates or entrances.
Wearable Payments Devices Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
The market is moderately fragmented and competitive in nature. Mergers & acquisitions, joint ventures, strategic collaborations, and product launches are some of the business strategies adopted by prominent vendors to strengthen their geographical presence and market positioning. These prominent vendors contend in terms of product differentiation, availability of apps, portfolio, digital content, and pricing. Constant innovations in product portfolios are further anticipated to intensify market competition over the forecast period.
Businesses are collaborating with other players to launch effective and differentiated products in comparison to their competitors. For instance, in April 2016, Jawbone, in collaboration with American Express, launched the NFC chip-enabled UP4 fitness band. This wristband allows users to pay directly from their devices. Intense competition, demographic trends, regular changes in consumer preferences, and consumer spending patterns act as significant risk factors for vendors. Some prominent players in the global wearable payments devices market include:
- Apple, Inc.
- Barclays PLC
- Gemalto NV
- Google LLC
- Mastercard
- Nymi
- PayPal Holdings Inc.
- Samsung Electronics
- Visa Inc.
- Wirecard
Order a free sample PDF of the Wearable Payments Devices Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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