According to a recent report “Wearable Payments” from market intelligence company Tractica, consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market.
Wearable payment systems may use near field communication (NFC), radio frequency identification (RFID) or quick response (QR) codes and barcodes as enabling technologies, and the contactless point-of-sale (POS) terminals and backend payment processing infrastructure being used for mobile payments are being leveraged to extend payment capabilities to wearables, as well.
The study notes that wearable payment transaction volume will grow from USD 3.1 billion in 2015 to USD 501.1 billion worldwide by 2020. The market intelligence company anticipates that, by that time, wearable payments will represent approximately 20% of the total mobile proximity transaction volume and about 1% of total cashless transactions in retail.
Tractica’s report analyzes the market opportunity for proximity payments or transactions made physically at POS terminals using wearable devices such as smart watches, fitness trackers, and payment wristbands. The report examines the market drivers and barriers, business models, enabling technologies and key applications for wearable payments. Market forecasts for wearable payment transactions and transaction volume are provided for the period from 2015 through 2020, and are segmented by device type, technology and world region.
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