PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1057422
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1057422
The global Wearable Payments Devices market was valued at USD 42,008.4 Million in 2020, growing with 14.8% CAGR during the forecast period, 2021-2027.
Consumers can use advanced technology integrated into their wearable devices to pay for products or services securely. The tapping-and-go method of payment is also called tap-and-go by many retailers and organizations since it provides retailers and vendors with a safer and more secure method of payment.
According to a report released by the National Association for the Advancement of Science, the major factors driving the market growth include the adoption of COVID-19-compliant cards and wearable devices, a growing demand for contactless payments for safe and secure payments, and growing adoption of NFC technology.
Wearable payment is defined as the act of making payments using devices that include wireless technologies such as NFC and RFID. Wearable payment devices are now being offered to customers more than just a convenient, contactless mode of payment since COVID-19 was spreading. Additionally, they can be used in both a healthy and safe manner. As an example, in the first quarter of 2020, MasterCard saw an increase of 40% in contactless payments. The technology is also used by 60% of all VISA customers outside of the United States for contactless payments. As a consequence, there has been a number of financial institutions, banks, and payment service providers who have accepted the digital payment agenda.
The COVID-19 pandemic had little effect on the market. Post-COVID-19, health concerns have prompted an increase in wearable device demand. During the current pandemic, wearable devices have been highlighted for their importance and usefulness. They are being adopted by users as ways to measure, monitor, and continuously gauge their health. As a result of the pandemic, contactless payments are becoming more popular. Due to contamination risks, phones and these devices have accelerated the switch to digital expense options.
The Wearable Payments Devices industry is segmented based on devices type, application, sales channel technology, and region.
In terms of devices type, the global Wearable Payments Devices industry is separated into smartwatches, fitness trackers, wristbands, smart rings, and others. Among these, into fitness tracker devises type segment accounted for the highest market share in 2020. Due to the increasing use of fitness devices and an increasing number of fitness enthusiasts around the world, fitness trackers are expected to grow in popularity in the coming years. Some fitness tracker vendors offer mobile payment capabilities. In addition, customers are increasingly choosing fitness trackers because of their added security features, which will protect them from frauds and identity thefts during the expense process.
Based upon the sales channel, the global Wearable Payments equipment industry is fragmented into indirect sales channels and direct sales channels. Most of the wearable payment device market is dominated by indirect sales channels or third parties since these channels are most commonly used by providers to sell their products to consumers. The market's key players have well-established sales networks and sell their products worldwide. As of now, smartwatches are primarily used for contactless payment in the wearable device market. Apple, Samsung, Fitbit, Garmin, and other major companies in this sector depend heavily on indirect sales channels for revenue generation.
Further, in terms of technology, the global Wearable Payments equipment industry is classified as Near Field Communication Technology (NFC), QR & Barcode, and Radio Frequency Identification (RFID). Among these barcode technology segment has the largest market share in 2020. Consumers are being focused on improving their experience at the checkout and reducing friction. Barcode scanners integrated with wearable devices allow them to scan and go. Customers can scan their items effortlessly while shopping with this technology.
The global Wearable Payments Devices industry is characterized by the presence of many global giant companies operating in various regions. Prominent players operating in this industry include Apple Inc. (US) Samsung Electronics Co., Ltd. (South Korea), Garmin AB (Switzerland), Xiaomi Corporation (China), Fitbit Inc. (US), Google LLC (US), Barclays PLC (UK), Tappy Technologies Ltd. (US), VISA Inc. (US), PayPal Holding Inc. (US), and Mastercard, Inc.
This industry is moderately fragmented in nature and shows the presence of many players competing for market share. Major players are adopting mergers and acquisitions as one of the prominent strategies to expand their foothold in the industry. For instance, Fitbit, a wearable device company, has been acquired by Google LLC for USD 2.1 billion in an all-cash deal in January 2021. As a result of the acquisition, the internet giant will increase competition oversight while strengthening its hardware business.
The scope of this report covers the market by its major segments, which include as follows:
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