Global Wearable Payment Device Market 2024-2031

Global Wearable Payment Device Market 2024-2031

Wearable Payment Device Market Size, Share & Trends Analysis Report by Type (Fitness Tracker, Payment Wristbands, Smart Watches, and Others), by Technology (Barcodes, Contactless Point of Sale (POS) Terminal, Near Field Communication (NFC), Quick Response (QR) Codes, and Radio Frequency Identification (RFID)), and by Application (Festival & Life Events, Fitness, Healthcare, Retail, and Transportation) Forecast Period (2024-2031)

Wearable payment device market is anticipated to grow at a CAGR of 16.5% during the forecast period (2024–2031). Wearable payment devices include a range of electronic products such as watches, wristbands, and rings with contactless payment features. The market growth is driven by rising demand for smartwatches, growth in the global digital payment market, increasing adoption of wrist wearables, and a changing trend in digital payments. Further, the market is expected to be positively influenced by novel product launches in wearable technology by financial institutions, the growth of the smart payment ring market, and the growing adoption of NFC (near-field communication) technology.

Market Dynamics

Growth in the Smartwatch Market

In recent years, the sales of smartwatches have considerably increased owing to the affordability of the product, changing technological trends, advancements in technology, and increasing adoption of wearable technology products, which has benefited the wearable payment device market. Further, most wearable devices are smartwatches, creating scope for market players to integrate payment technology to the devices, resulting in added product features and growing sales. For instance, in February 2023, Gizmore, one of the top companies of fitness equipment, home audio, and smart accessories in India, expected to sell more than 1.5 million smartwatches by 2023–2024 and take a 5.0% market share there. In addition, Gizmore stated that it will be working with Optiemus Electronics Limited (OEL) to produce approximately a million smartwatches over the following year.

Rising Trend of Contactless Payments

Another key factor driving market growth is the increasing popularity of contactless payments. The market has seen a significant increase in the number and volume of contactless transactions since the advent of NFC (near-field communication) and radio frequency identification (RFD) technology, as consumers' preferences for digital payment are shifting toward more convenient solutions. According to a whitepaper released by Visa and Worldline India, contactless payments' share to total face-to-face (F2F) transactions increased by more than six times to 16.0% in December 2021 from less than 2.5% in December 2018. The highest adoption of contactless payments was observed in sectors like quick-service restaurants, pharmacies, food, and grocery which accelerated with the impact of the pandemic. Also, in January 2020, contactless transactions accounted for 25.0% of all supermarket transactions. By January 2022, this figure increased to 31.0%. Further, novel NFC-enabled wearable devices have been successful in promoting the trend and are expecting to capitalize on the changing payment dynamics.

Segmental Outlook

Based on type, the market is segmented into fitness trackers, payment wristbands, smart watches, and others (rings, and fob sleeve).

Based on technology, 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).

Based on application, the market is segmented into festival & life events, fitness, healthcare, retail, and transportation.

Smartwatches are the Biggest Segment

The smartwatch segment remains the most selling and demanded wearable payment device among the market owing to its increasing demand, advancement in technology, rising trend of smartwatches, and overall practicality of the product. In September 2023, Apple announced Apple wearable Series 9, which added new capabilities to the best-selling wearable while also marking an important environmental milestone. Apple Watch Series 9 is more powerful than ever, thanks to the new S9 SiP, which improves speed and capabilities; a magical new double tap gesture; a brighter display; faster on-device Siri, which can now access and log health data; precision finding for iPhone, and more.

Near Field Communication (NFC) is Projected to Dominate the Segment

NFC-based wearable devices and technology are gaining popularity worldwide due to their convenience, security, and speed. Furthermore, the technology syncs better with POS and wearable devices whilst being cost-effective. For instance, in December 2021, the Bank of Baroda and bob World joined hands with National Payments Corporations of India (NPCI) to launch bob World Wave, a wearable line of products for payments, integrated with a complete health ecosystem. The device will provide contactless payments of up to Rs 5000 ($59.8) in all NFC-enabled PoS devices. Customers can make contactless payments above Rs. 5000 ($59.8) using a PIN.

Regional Outlook

The global wearable payment device market is segmented based on geography including North America (the US, and Canada), Europe (the UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

Asia-Pacific is Estimated to Demonstrate a Significant Market Growth

Asia-Pacific regional market is predicted to demonstrate the highest growth rate in the future attributed to the ongoing increase in expenditure made by regional companies to improve product capabilities and expansion in the region, rising consumption of smart wearable devices in the region, growing number of low-cost wearable payment device manufacturers such as Noise, Boat, among others, and increasing disposable income. For instance, in June 2024, Air Link Communication Limited, a smartphone maker in Pakistan, signed a Memorandum of Understanding (MoU) with IMIKI Corporation, a Chinese technology company, to create smart wearable devices.

Market Players Outlook

The major companies serving the global wearable payment device market include Apple Inc., Google LLC, Huawei Device Co., Ltd., Samsung Electronics Co., Ltd., and Xiaomi Communications Co., Ltd. among others. The market players are focusing on capitalizing on growth by adopting strategies such as collaboration, partnerships, and market expansion among others. For instance, in September 2023, Eastern Bank PLC (EBL) in collaboration with payment network partners Mastercard and Visa officially launched the nation's first wearable payment devices branded WEAREBL. It will be available in a compact payment ring, a versatile phone holder and a grip, a stylish wristband, and a compact portable fob sleeve.