Wearable Payments Devices Market is driven by Increasing Adoption of Cashless Transactions

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.

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 smartwatches segment 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 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.
• Customers are preferring wearable payment devices, such as payment rings and wristbands, as these devices reduce cash in circulation at big events and improve payment speed.

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.
• The contactless Point of Sale (POS) terminals segment is anticipated to witness the highest growth over the forecast period.
• The introduction of NFC and IoT-based contactless payment capabilities into wearable devices is expected to fuel the growth of the contactless POS terminals segment.

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.

Some of the prominent players in the 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.