To meet increased customer demand, several manufacturers, like Samsung Electronics and Apple Inc., are integrating payment technology into their wearable gadgets. In addition, the cost of installing NFC technology has decreased, which has aided industry expansion. Customers may have a secure purchasing experience with wearable payment gadgets because they are equipped with advanced technology.
According to a recent analysis published by Fact.MR, the global Payment Wristbands market is estimated to reach a worth of over US$ 15.6 billion by 2021, and will grow at a staggering CAGR of around 29 percent from 2021 to 2031.
In the last few years, wearable payment gadgets have seen significant growth. Several financial institutions and banks have begun exploiting the advantages of these electronic payment devices in order to extend their current customer base since the introduction of Host Card Emulation (HCE) and cashless payment methods. The rise of HCE can be related to an increase in demand for wearable payment devices, as HCE enables wearable devices to imitate cards on NFC-enabled devices without requiring access to an authorised element. Furthermore, due to their capabilities that allow a seamless transaction experience, NFC, RFID, and HCE technologies are key aspects of wearable and contactless payment devices.
Payment Wristbands Market: Key Takeaways
- During the projected period, South Asia is expected to increase at a rapid rate (34 percent between 2021 and 2031).
- North America, with a market share of over 31%, is expected to lead the way, followed by Europe.
- North America and Europe will account for 57% of global wearable payment device sales in 2020. About the next 10 years, the European market is predicted to offer over US$ 35.6 billion in absolute dollar opportunity.
- Fitness trackers and payment wristbands combined accounted for around three-quarters of the global market share in 2020.
- Barcodes are expected to cover a larger market share under technology, accounting for roughly 30% of the market.
- Retail had the biggest proportion of wearable payment devices, accounting for approximately 28% of all applications.
According to a Fact.MR analyst, “globally, increased cyber-attacks during online and mobile payments has boosted the adoption of contactless payment through wearable payment devices.”
Which Region Offers Huge Opportunity for Wearable Payment Device Manufacturers?
North America has been recognised to have a concentration of major markets. Wearable payment device sales in North America account for roughly 31% of global sales.
During the projected period, the region is expected to offer about US$ 43 billion in absolute dollar opportunity. NFC and RFID are being used by many manufacturers, including Apple, Inc., Google LLC, and others, for wearable payment devices. Several firms are also introducing host card emulation technology in wearable devices for a simple user interface.
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