Wearable Payment Device Market

Global Wearable Payment Devices Market Size (2023 to 2028)

The global wearable payment devices market is expected to be worth USD 104.75 billion by 2029 from USD 55.86 billion in 2024, growing at a CAGR of 13.4% from 2024 to 2029.

Current Scenario of the Global Wearable Payment Devices Market

The world has entered a digital era, and every sector is following the trend, which has given rise to wearable payment devices. A wearable payment device, as the name suggests, is a device that can be used for payment quickly, seamlessly, and with no hassle. The chips used for payments are NFC or RFID, very small in size, and can be fitted into most accessories. This allows almost any fashion accessory to become a possible wearable payment device such as smart rings,  smartwatches, fitness trackers, and others, which gave rise to an increase in demand for wearable payment devices. Earlier, this technology was only limited to cards. The wearable payment devices market has a lot of potential opportunities in the future. Smartwatches and accessories now come with an in-built feature for wireless payment to meet demand and create a USP in the market. 

MARKET DRIVERS

The key players know their customer loyalty and brand value and to create an ecosystem of their own products, they push smartwatches, which also propels the wearable payment devices market.

This, in turn, made NFC payments more accepted, which in turn led to new entrants with innovative products in the wearable payment devices market. Vendors need a small chip or a bar code to start accepting the payments, making the whole process easy on their end as well. The usage of wearable payment devices is expected to be fuelled by the growing demand for smart fashion products in the coming years. To keep up with consumer trends, manufacturers are constantly trying to innovate and add new features to wearable devices, which is prompting the growth rate of the market. Wearable payment devices are smart and fashionable and are an excellent way to meet the growing demand.

The recent trend of going cashless is also boosting the growth rate of the wearable payment devices market. Users can carry their wearables and make any payments they want on the go, giving them the convenience of avoiding carrying cash or other modes of payment. The wearable payment devices market also fulfills the demands of consumers to keep up with the trends and current fashion standards, which is supporting global market growth.

Digitalization is growing rapidly worldwide and evolving, which is offering room for opportunities for wearable payment devices. Companies are only focusing on smartwatches and fitness bands, and only a few key players are also entering the market for other wearable payment devices. New entrants, as well as key players, have a lot of opportunities and potential to enter the sunglasses, key chain, and locket/pendant markets, as not many companies are targeting them.

MARKET RESTRAINTS

The short battery life is a restraint to the growth of the wearable payment devices market. Devices that offer more features tend to be quite taxing as well, which results in short battery life for these devices. These devices have many other features that drain the battery rapidly. The high cost of the devices is slowly degrading the growth rate of the market. Wearable payment devices can be very expensive because a lot of hardware and software go into them. The overall price is high, especially for premium products in the market. For instance, Apple Pay is only available on Apple products, which come at a premium price. The poor acceptability of these devices is further impeding the growth of the global market. Wearable payment devices are still relatively new in the market and don’t have a wide acceptance rate in comparison to other modes of payment. If there are no vendors that accept payments via wireless mode, then the market for wearable payment devices would fall as well.

Impact of COVID-19 on the wearable payment devices market

The COVID-19 pandemic had a positive impact on the wearable payment devices market in general, as people were avoiding physical contact with other objects outside. Wearable payment devices came in handy and could be used easily, quickly, and with minimal to no touching or contact. Despite the COVID-19 pandemic, the demand for wearable payment devices has increased significantly in recent days and the trend is likely to accelerate in the coming years and boost the growth of the wearable payment devices market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Wearable Payment Devices Market By Type

The fitness trackers segment had the highest share of the global market, followed by smartwatches in 2022.

Wearable payment devices can be of many types, most commonly smartwatches, and fitness trackers. The expansion of fitness wearables into payment functionalities is one of the major factors driving the growth of the fitness trackers segment in the worldwide market. The fitness tracker devices in the payment modalities are expected to grow at a CAGR of 14.6% in the next five years and the same growth can be seen in the global wearable payment devices market. The manufacturers of fitness trackers such as Fitbit, Garmin, and Xiaomi, have been putting significant efforts to boost the adoption of payment integration with the fitness trackers.

The smartwatch segment is anticipated to grow substantially during the forecast period. The rising adoption of smart wearables and growing usage of contactless payment modes are majorly supporting the growth of the smartwatches segment in the worldwide market. The transactions using smartwatches are growing gradually. The wearable payment transactions through smartwatches are expected to grow by 20% annually. The growing number of partnerships between tech companies and payment services providers is adding a significant boost to the growth rate of the smartwatches segment in the worldwide market.

Global Wearable Payment Devices Market By Technology

NFC and RFID are the most used technology in the wearable payment devices market. These are affordable and small enough to fit into any wearable accessory. Bar code is a much cheaper alternative to this in the wearable payment device market.

The NFC segment is expected to hold the leading share of the global market during the forecast period owing to the growing popularity of contactless payments, convenience, and speed that NFC provides. The NFC-enabled wearable payment transactions are expected to grow by 25% annually. The growing integration of NFC technology in smartwatches and wristbands and the rapid adoption of NFC in public transportation systems are further boosting the growth rate of the NFC segment.

The QR and barcode segment is anticipated to grow at a lucrative pace during the forecast period.

Global Wearable Payment Devices Market By Application

The retail and grocery stores segment is anticipated to account for the largest share of the worldwide market during the forecast period, owing to the rapid adoption of contactless payments for convenience and speed and increasing demand for frictionless transactions. Contactless payments in the retail industry are growing at a significant rate, which is expected to drive the retail and grocery stores segment in the global market. For instance, the contactless payments in retail are expected to grow at a CAGR of 18%.

On the other hand, the hospitals and pharmacies segment is estimated to grow at a notable pace during the forecast period. The hospitals and pharmacies segment is gaining traction and is expected to hold a considerable share of the worldwide market during the forecast period.

Global Wearable Payment Devices Market By Material of The Device

The silicone segment held the major share of the global market in 2022 and is expected to continue to lead in the market during the forecast period. Usually, the material of the wearable payment device is either silicone or fabric; they both are comfortable on the hand and are very resistant and rugged. These materials also don’t interfere with the mini chips of NFC or RFID as some other materials do. 

REGIONAL ANALYSIS

The majority of the global wearable payment devices market share was captured by Asia-Pacific and North American regions in 2022.

The Asia-Pacific market is predicted to grow at a promising CAGR during the forecast period due to rapid urbanization, widespread adoption of mobile payments, the presence of a tech-savvy population, and growing support for digital finance from the governments. China led the wearable payment devices market of Asia-Pacific in 2022, whereas the Indian market is expected to grow at the fastest CAGR during the forecast period in this region.

The North American regional market is anticipated to grow exponentially in the global wearable payment devices market during the forecast period owing to the presence of the developed economies and rising popularity of wearable devices. North American countries are quick to adopt the latest technological trends, and due to this, the use of wearable payment devices is high in North American countries.

Europe is estimated to capture a substantial share of the global market during the forecast period owing to the rapid adoption of contactless payments.

Latin America is predicted to grow healthy during the forecast period owing to the growing efforts by governmental and non-governmental organizations to promote digitalization across the Latin American region.

KEY MARKET PLAYERS

Companies playing a noteworthy role in the global wearable payment devices market include Apple Inc., Samsung, Visa, Mastercard, Huawei, Xiaomi, and Thales Group

DETAILED SEGMENTATION OF THE GLOBAL WEARABLE PAYMENT DEVICES MARKET INCLUDED IN THIS REPORT

This research report on the global wearable payment devices market has been segmented and sub-segmented based on type, technology, application, material of the device, and region.

 By Type

• Smart Watches
• Fitness Trackers
• Payment Wristbands
• Smart Rings
• Glasses

By Technology

• Near Field Communication Technology (NFC)
• Radio Frequency Identification (RFID)
• QR and barcode

By Application

• Retail and Grocery Stores
• Restaurants
• Hospitals and Pharmacies
• Entertainment Centers

By Material of The Device

• Fabric
• Silicone

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa