Wearable Payment Device Market

Wearable Payment Device Market Outlook (2024 to 2034)

Revenue from the wearable payment device market is analyzed to reach US$ 33.47 billion in 2024. The market is evaluated to reach a value of US$ 133.09 billion by the end of the assessment period in 2034, and expanding at a CAGR of 14.8% from 2024 to 2034.

Wearable payment describes financial transactions carried out through wearable technology connected to wireless protocols such as NFC and RFID. Wearable payment devices ensure cleanliness and safety in addition to offering customers a convenient and contactless way to make purchases.

Key Market Growth Drivers

• The technologies driving advancements in wearable payment devices are Near Field Communication (NFC), Host Card Emulation (HCE), and Radio Frequency Identification (RFID). Major corporates such as Apple, Huawei, and Samsung are leading the way in integrating cutting-edge solutions that are improving user experience by enabling quicker and more secure transactions, thus driving wearable payment device market growth.
• Wearables come in several forms than just fitness trackers and smartwatches. One innovative method of conducting transactions is the introduction of payment rings.
• By doing away with the need to carry physical wallets or even use digital wallets saved on smartphones, these devices-the payment ring from Quontic Bank being one example-offer convenience and a distinctive value proposition.
• These developments are a component of banks' larger plans to differentiate themselves in the crowded field of digital banking.
• The use of biometric technologies to improve the security of transactions conducted through wearable devices is addressing security concerns. Since they are offering safe and easy-to-use user experiences, biometric payment systems-which recognize voice, facial patterns, and fingerprints-are gaining popularity there.
• Fitbits and smartwatches are no longer the only wearable payment devices available; payment rings and other cutting-edge forms are now part of the market. Linked to a single bank or account, these devices provide a unique way to conduct transactions without requiring physical wallets or cards. They are also offering a combination of convenience and security.

Report Attribute	Detail
Wearable Payment Device Market Size (2024E)	US$ 33.47 Billion
Projected Market Value (2034F)	US$ 133.09 Billion
Global Market Growth Rate (2024 to 2034)	14.8% CAGR
East Asia Market Share (2024E)	23.5%
North America Market Share (2024E)	33%
Revenue Share of Fitness Trackers as Payment Devices (2034F)	39%
Key Companies Profiled	Fitbit Inc.; Apple, Inc.; Tappy Technologies Ltd.; Barclays PLC; Xiaomi Corporation; Gemalto NV; Wirecard; Google LLC; Visa Inc.; Garmin AB; Samsung Electronics; Mastercard; PayPal Holdings Inc.; Nymi.

What are the Prevailing Wearable Payment Market Trends?

“Consumer Interest in Wearable Payment Devices Rising with Technological Advancements”

The market for wearable payment devices will continue expanding its diversification, with a growing emphasis on improving customer experiences in industries such as retail and transportation. A promising future for this rapidly evolving market is suggested by the strategic adoption of wearable technology, which offers effective and seamless interactions with customers. According to a study by Raddon, there is a 17% increase in time spent by consumers on using applications on smartwatches or similar wearable devices for transactions to find more contactless methods of making purchases. These factors are further positively affecting demand for wearable payment devices.

The need for cashless transactions in retail establishments and online channels is leading to a notable adoption of wearable payment technologies by the retail industry. Furthermore, it is projected that the festival and life events industry will witness a significant increase in the use of wearable payment devices, such as wristbands, which provide attendees with a safe and easy way to make purchases without carrying cash.

What Challenges are Responsible for Decreasing Wearable Payment Device Market Size?

“Direct Cellular Network Connectivity of Wearable Devices Causing Batteries to Deplete Quickly”

Small-sized batteries are required to power the payment functionality of wearable payment devices because they are becoming smaller than ever due to advancements in technology. However, a wearable computer running a cutting-edge operating system needs a large battery backup to guarantee continuous operation. Wearable device batteries tend to run out fast due to direct cellular network connectivity, further negatively affecting the battery life. The industry is also facing difficulties such as short battery lives, high prices, and security concerns despite the sector's encouraging growth.

Country-wise Insights

North America is analyzed to hold 33% of the global wearable payment device market share in 2024 as the region is expanding at a significant growth rate across the globe. Moreover, the Asia Pacific region is projected to grow at a high rate. The expansion of the industry is ascribed to the region's high population and growing demand for digital gadgets. It is anticipated that factors including the ongoing shift toward a cashless economy and advancements in payment technologies are supporting the market growth.

How is the Market for Wearable Payment Device Faring in the United States?

“Uses of Wearable Payment Devices Growing among Fitness Enthusiasts”

Attribute	United States
Market Value (2024E)	US$ 4.91 Billion
Growth Rate (2024 to 2034)	14.5% CAGR
Projected Value (2034F)	US$ 19.12 Billion

The United States is projected to account for 44.5% of the North American market share in 2024. Expansion of the country market is facilitated by the existence of major players, including Visa, Google LLC, Apple Inc., and MasterCard Inc. Throughout the projection period, wearable device adoption by fitness enthusiasts and a rise in technological dependence on timing and monitoring are likely to fuel market development. Furthermore, the creation of smart gadgets with payment and monitoring capabilities is expanding quickly in the United States.

What Makes China a Lucrative Market for Wearable Payment Devices?

“Country’s Move Towards Cashless Economy Helping Manufacturers of Wearable Payment Devices”

Attribute	China
Market Value (2024E)	US$ 3.85 Billion
Growth Rate (2024 to 2034)	15.6% CAGR
Projected Value (2034F)	US$ 16.44 Billion

China is analyzed to account for around half of the share in the East Asian market in 2024. China is projected to grow at a noteworthy rate due to the country’s large population base and rising demand for digital devices among the general public. The market expansion is also aided by ongoing developments in payment technology.

Category-wise Insights

The market for wearable payment devices is categorized into different devices such as fitness trackers, payment wristbands, and smartwatches of which the first one is expected to account for 42% in 2024. In terms of application, the market is expected to capture 20% from fitness, 17% from healthcare, 28% from retail, and 18% from festivals and life events in 2024.

Why are Fitness Trackers Demanded More as Wearable Payment Devices?

“Fitness Trackers Assist Customers in Multiple Ways”

Attribute	Fitness Trackers
Segment Value (2024E)	US$ 14.06 Billion
Growth Rate (2024 to 2034)	14% CAGR
Projected Value (2034F)	US$ 51.9 Billion

Fitness trackers are projected to gain widespread popularity due to the growing number of fitness enthusiasts and the availability of a wide variety of fitness gadgets, including the ability to integrate mobile payments into fitness trackers. Manufacturers of fitness trackers are also enhancing their products' usefulness by offering security against theft and fraud when making payments. Fitness trackers assist users in monitoring their fitness parameters and analyzing, and recording, their heart rate, activities, and calories burned. As a result, the growth of the global market is aided by all of these factors combined.

Which Application is Generating Significant Revenue for Wearable Payment Devices?

“Retailers Focusing on Educating Customers for Seamless Payment through These Devices”

Attribute	Retail
Segment Value (2024E)	US$ 9.37 Billion
Growth Rate (2024 to 2034)	15.6% CAGR
Projected Value (2034F)	US$ 39.93 Billion

Retailers are focusing on enhancing the general customer experience and minimizing friction during checkouts. Barcode scanners are equipped with scan-and-go capabilities to encrypt data on wearable payment devices. Customers also have an option to easily scan and pay after they are done with shopping due to this technology.

The growing popularity of cashless payment methods in local stores, marketplaces, and e-Commerce is the reason for the segment's expansion. Vista Retail Support conducted a survey, which mentioned that about 72% of respondents mentioned that wearable payment devices would be used more in in-store shopping going forward. Retailers worldwide are emphasizing customer education regarding the technology used in contactless payment, encouraging the sales of wearable payment devices in retail.

Competitive Landscape

Key players in the wearable payment device market are focusing on product development and collaboration to expand the market. Giant corporate houses such as Samsung, Apple, and Huawei are integrating RFID and NFC into their offerings, thus providing opportunities for global market growth.

• To increase the variety and appeal of its product line Garmin International, Inc., a division of Garmin Ltd., announced new band designs for the vívofit jr. 3 kids' fitness tracker lineup in May 2022.
• In December 2021, Xiaomi introduced the wearable S1, a smartwatch. The goal of Xiaomi's launch was to provide reasonably priced wearable payment options.
• BillBox, in association with Visa and NSDL Payments Bank, introduced TapTap, a wearable gadget that enables contactless payments. This invention is evidence of the expanding contactless payment trend in India.

Fact.MR provides detailed information about the price points of leading providers of wearable payment devices positioned across the world, sales growth, production capacity, and technological advancements, in this revised market report.

Segmentation of Wearable Payment Device Market Research

• By Device Type :

  • Fitness Trackers
  • Payment Wristbands
  • Smart Watches

• By Technology :

  • Barcodes
  • Contactless Point of Sale Terminals
  • Near Field Communication [NFC Wearable Payment Devices]
  • Quick Response [QR] Codes
  • Radio Frequency Identification

• By Application :

  • Festivals & Life Events
  • Fitness
  • Healthcare Retail
  • Transportation

• By End Use Industry :

  • Construction
  • Residential
  • Non-Residential
  • Infrastructural
  • Offshore
  • Oil & Gas
  • Wind

• By Region :

  • North America
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Western Europe
  • Eastern Europe
  • Middle East & Africa