GVR Report cover Wearable Payments Devices Market Size, Share & Trends Report

Wearable Payments Devices Market Size, Share & Trends Analysis Report By Device Type (Fitness Tracker, Smart Watches), By Technology, By Application, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Jan, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68039-284-2
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 140

Report Overview

The global wearable payments devices market size was valued at USD 10.35 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 29.8% from 2021 to 2028. The market growth can be attributed to the increasing demand for Host Card Emulation (HCE) and the growing adoption of cashless transactions. HCE allows mobile or wearable devices to permit card imitation on NFC-enabled devices without depending on access to an authenticated element. Furthermore, the increasing demand for wearable payment devices owing to their fast payment capability is expected to fuel the market growth over the forecast period. Numerous e-banking platforms are adopting wearable payment devices. These platforms are focusing on integrating the Near Field Communication (NFC) technology into their transaction operations, which facilitates seamless payments. Furthermore, the decreasing costs for deploying NFC technology are encouraging the rise in demand for the technology. Businesses widely use this technology to transfer data from their devices to various contactless payment terminals, such as NFC tags and smartphones.

U.S. wearable payments devices market size, by device type, 2016 - 2028 (USD Million)

The rapid growth in the use of contactless payments is driven by the mandates of digital payment networks by the governments across the globe, which, as a result, has increased the adoption of payment-enabled devices. Wearable payments offer a quick and convenient way of making payments, specifically for small to medium-sized monetary transactions. Factors such as the increasing integration of NFC payment systems in mobile devices increased comfort with using contactless cards, and the rising adoption of contactless point-of-sale readers are expected to create growth opportunities for the market over the forecast period. Additionally, the growth in IoT globally acts as a major driver for invisible payments, thereby propelling the market growth over the forecast period.

The market is significantly driven by the increase in digitization, followed by the growing adoption of a cashless economy observed in several countries. The use of smart technologies, coupled with rising internet penetration, has resulted in the increased adoption of connected devices. Furthermore, the market growth is influenced by the presence of VR and AI technologies, which is driven by developments in mobile applications. Digitization in banks is expected to gain traction as banks are focusing on connecting card management systems with various token service providers.

The outbreak of COVID-19 is anticipated to favorably impact market growth over the forecast period. In this time of the pandemic, customers across the globe are preferring contactless payments as a mode of payment, which is expected to fuel the adoption of wearable payment devices. However, factors such as the limited battery life of the devices, high cost of the devices, and security concerns are expected to hamper the market growth. The high costs of devices impact the ability of manufacturers to launch their products in the market, thus resulting in limited production. These payment devices are costly, which restricts various consumers from purchasing these devices. Additionally, the rising competition in the market and low awareness about the product are further limiting the market growth.

Device Type Insights

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. Numerous vendors have started integrating mobile payments into their fitness trackers. Moreover, customers are widely opting for fitness trackers owing to their increased safety feature, which protects them from frauds and identity thefts at the time of payment processes.

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. These smartwatches are connected to smartphones through Bluetooth, NFC, or RF, which makes it easier for users to pay their bills. For instance, prominent companies such as Samsung Electronics and Apple Inc. have included the Bluetooth connectivity feature in their smartphones to enable users to make use of their smartwatches more efficiently.

Technology Insights

The barcodes segment dominated the market and accounted for more than 30.0% share of the global revenue in 2020. Retailers are focusing on removing friction at checkouts and improving the overall customer experience. Wearable payments devices are encoded with barcode scanners that incorporate scan-and-go technology. This technology enables customers to effortlessly scan their items as they shop. Additionally, the barcode system enables retailers to eliminate the need for a traditional and static point-of-sale.

The contactless Point of Sale (POS) terminals segment is anticipated to witness the highest growth over the forecast period. According to Berg Insight AB, by the end of 2022, nearly eight out of ten POS terminals installed by retailers or vendors across the globe will be able to receive NFC-enabled contactless payments. 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. Vendors such as Samsung Electronics and Apple, Inc. have introduced their own contactless POS terminals, consequently driving the segment.

Application Insights

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. According to a survey by Vista Retail Support, 72% of the customers believe that wearable payment devices are the future of in-store shopping. Furthermore, numerous retailers across the globe are focusing on educating customers about contactless payment technology, which, in turn, is promoting the use of wearable payment devices in the retail sector.

Europe wearable payments devices market share, by application, 2020 (%)

The festival and life events segment is anticipated to witness significant growth over the forecast period. Festival and life event managers are focusing on adopting contactless payment technology to reduce long queues on the gates or entrances. Moreover, 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. At big events, event managers distribute wristbands, which can support both payment use cases and access to events. These wristbands eliminate the need to carry money and reduce waiting in line for both the purchase of food and beverages and access to events, which improves the overall experience for users.

Regional Insights

North America dominated the market and accounted for over 31.0% share of the global revenue in 2020. The market growth can be attributed to the presence of key players such as Apple, Inc.; Google LLC; Mastercard; and Visa, Inc. in the region. Trends such as the growth in technological dependence for timing and tracking and increasing adoption of wearable devices by fitness enthusiasts are also expected to fuel the regional market growth over the forecast period. Furthermore, North America is witnessing a substantial rise in the production of smart devices with tracking and payment features.

Asia Pacific is anticipated to emerge as the fastest-growing regional market over the forecast period. The market growth can be attributed to the presence of a large population and increasing demand for digital devices in the region. Factors such as steady growth in building a cashless economy and transformation in payments technology are expected to contribute to the market growth. The increasing number of market entrants is also an important trend in the market.

Key Companies & 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.

Businesses are collaborating with other players to launch effective and differentiated products in comparison to their competitors. For instance, in April 2016, Jawbone, in collaboration with American Express, launched the NFC chip-enabled UP4 fitness band. This wristband allows users to pay directly from their devices. Intense competition, demographic trends, regular changes in consumer preferences, and consumer spending patterns act as significant risk factors for vendors. Some prominent players in the global wearable payments devices market include:

  • Apple, Inc.

  • Barclays PLC

  • Gemalto NV

  • Google LLC

  • Mastercard

  • Nymi

  • PayPal Holdings Inc.

  • Samsung Electronics

  • Visa Inc.

  • Wirecard

Wearable Payments Devices Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 12.93 billion

Revenue forecast in 2028

USD 80.39 billion

Growth rate

CAGR of 29.8% from 2021 to 2028

Base year of estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million, transaction volume in USD billion, CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Device type, technology, application, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; Germany; U.K.; China; India; Japan; Brazil

Key companies profiled

Apple, Inc.; Barclays PLC; Gemalto NV; Google LLC; Mastercard; Nymi; PayPal Holdings Inc.; Samsung Electronics; Visa Inc.; Wirecard

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope

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Segments Covered in the Report

The report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global wearable payments devices market report based on device type, technology, application, and region:

  • Device Type Outlook (Revenue, USD Million, 2016 - 2028)

    • Fitness Tracker

    • Payment Wristbands

    • Smart Watches

  • Technology Outlook (Revenue, USD Million, 2016 - 2028)

    • Barcodes

    • Contactless Point of Sale (POS) Terminals

    • Near Field Communication (NFC)

    • Quick Response (QR) Codes

    • Radio Frequency Identification (RFID)

  • Application Outlook (Revenue, USD Million, 2016 - 2028)

    • Festival & Life Events

    • Fitness

    • Healthcare

    • Retail

    • Transportation

    • Others

  • Regional Outlook (Revenue, USD Million, Transaction Volume, USD Billion, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • Middle East & Africa

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