Wearable Payment Device Market Size, Share & Segmentation By Device Type (Smart Watches, Payment Wristbands, Fitness Trackers, Smart Rings) By Technology (Near Field Communication Technology (NFC), Quick Response (QR) Codes, Barcodes, Radio Frequency Identification (RFID), Contactless Point Of Sale (POS) Terminals) By Sales Channel (Direct Sales, Indirect Sales) By Application (Retail/Grocery Stores, Hospitals, Restaurants, Entertainment Centers, Others), By Regions And Global Forecast 2023-2030

Report Scope & Overview:

Wearable Payment Device Market Size was valued at USD 19.13 billion in 2022, and is expected to reach USD 138.05 billion by 2030, and grow at a CAGR of 29.8% over the forecast period 2023-2030.

Wearable devices are electronic components and software-controlled products that can be incorporated into clothing or worn on the body as accessories; they also include contactless payments. Payment transactions using wearable devices integrated with wireless technologies such as NFC and RFID are referred to as wearable payment devices. Payment can now be quickly and invisibly added to wearables, resulting in a better customer experience. As a result, many financial institutions and banks are offering wearable payment options to their customers in order to provide a convenient and contactless experience.

MARKET DYNAMICS:

KEY DRIVERS:

• Wearable technology providers are increasingly focusing on providing enhanced customer services through mobile applications.

• Adoption of secure and advanced technology-based digital payment solutions is increasing.

• Rising demand for wearable electronic devices will drive the growth of wearable payment devices.

RESTRAINTS:

• Consumer electronics have a shorter life cycle.

• Wearable payment device battery drain issues.

OPPORTUNITIES:

• Wearable payment devices are increasingly incorporating advanced technologies such as NFC, RFID, and host card emulation.

CHALLENGES: 

• Wearable payment devices raise security concerns.

IMPACT OF COVID-19: 

The COVID-19 pandemic had little effect on the market. The rise in health concerns following COVID-19 has boosted demand for wearable devices. The current pandemic has brought to light the importance and utility of wearable devices. Wearable devices are increasingly being used by users to measure, monitor, and continuously assess their personal health. The pandemic has also increased public awareness of the benefits of contactless payments. Due to the risk of contamination, it has accelerated the shift from cash to digital options via smartphones and wearable payment devices. Contactless payments have emerged as an essential solution for all businesses, allowing them to drive their operations forward while also ensuring safety in the face of the coronavirus pandemic.

MARKET ESTIMATION:

Based on Device Type, the wearable payment device market is segmented by Smart Watches, Payment Wristbands, Fitness Trackers and Smart Rings. The smartwatch segment is expected to grow the most during the forecast period. The growing emphasis of vendors on launching low-cost smartwatches is expected to boost smartwatch adoption over the forecast period. These smartwatches communicate with smartphones via Bluetooth, NFC, or RF, making it easier for users to pay their bills. 

Based on Technology, the wearable payment device market is segmented by Near Field Communication Technology (NFC), Quick Response (QR) Codes, Barcodes, Radio Frequency Identification (RFID) and Contactless Point of Sale (POS) Terminals. The contactless Point of Sale (POS) terminals segment is expected to grow the most during the forecast period. According to Berg Insight AB, nearly eight out of ten POS terminals installed by retailers or vendors worldwide will be able to accept NFC-enabled contactless payments. The incorporation of contactless payment capabilities based on NFC and IoT into wearable devices is expected to fuel the growth of the contactless POS terminals segment. Contactless POS terminals have been introduced by vendors such as Samsung Electronics and Apple, Inc., driving the segment.

Based on sales channel, the wearable payment device market is segmented by Direct Sales and Indirect Sales. Indirect sales channels or third parties account for a large portion of the market because these channels are primarily used by wearable payment device providers to offer their devices to various end users. The majority of the market's key players have well-established sales networks and sell their products globally. At the moment, the contactless payment function is mostly used by smart watches in the wearable device market. Furthermore, the ongoing COVID-19 scenario has resulted in a shift in consumer behavior, with consumers now preferring contact-free shopping experiences and practicing social distancing. Customers also prefer to purchase consumer electronics such as smartphones and wearable devices from third-party providers due to the periodic discounts and offers made available by online shopping websites.

Based on Application, the wearable payment device market is segmented by Retail/Grocery Stores, Hospitals, Restaurants, Entertainment Centers and Others. Contactless payment via wearable devices has been used for billing in retail and grocery stores because it is convenient and allows consumers to keep a record of their transactions. Furthermore, consumers are increasingly avoiding cash transactions. In addition, to keep customers safe, several retailers around the world are investing in contactless payment technologies. As a result, the retail and grocery store market is expected to grow at the fastest rate during the forecast period.

COMPETITIVE LANDSCAPE:

The key players in the wearable payment device market are Alibaba Group, Google Inc., Samsung Electronics, Apple Inc., Fitbit Inc., Barclays Plc., Mastercard, Jawbone, PayPal Inc. and Visa.

MARKET SEGMENTATION:

BY DEVICE TYPE

• Smart Watches

• Payment Wristbands

• Fitness Trackers

• Smart Rings

BY TECHNOLOGY

• Near Field Communication Technology (NFC)

• Quick Response (QR) Codes

• Barcodes

• Radio Frequency Identification (RFID)

• Contactless Point of Sale (POS) Terminals

BY SALES CHANNEL

• Direct Sales

• Indirect Sales

BY APPLICATION

• Retail/Grocery Stores

• Hospitals

• Restaurants

• Entertainment Centers

• Others

REGIONAL ANALYSIS:

North America dominated the market. The presence of key players in the region has contributed to market growth. Trends such as increased technological reliance for timing and tracking, as well as increased adoption of wearable devices by fitness enthusiasts, are expected to fuel regional market growth during the forecast period. Furthermore, North America is seeing a significant increase in the production of smart devices with tracking and payment capabilities. Asia Pacific is expected to be the fastest-growing regional market during the forecast period. The presence of a large population and rising demand for digital devices in the region are driving market growth. Factors such as consistent growth in the development of a cashless economy and transformation in payment technology are expected to contribute to market growth. The increasing number of market entrants is also a significant market trend.

REGIONAL COVERAGE:

• North America

  • USA

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

  • The Netherlands

  • Rest of Europe

• Asia-Pacific

  • Japan

  • south Korea

  • China

  • India

  • Australia

  • Rest of Asia-Pacific

• The Middle East & Africa

  • Israel

  • UAE

  • South Africa

  • Rest of Middle East & Africa

• Latin America

  • Brazil

  • Argentina

  • Rest of Latin America

Frequently Asked Questions (FAQ) :