Wearable Payment Market - Size, Industry Share, Growth Trends and Forecasts (2024 - 2031)

By Device Type:

Based on the device type, the market is segmented into smart rings, wristbands, fitness tracker, and smartwatch.

The smartwatch segment accounted for the largest revenue share of 56.94% in the year 2023.

• A smartwatch refers to a device that enables users to conduct financial transactions.
• Many smartwatches support contactless payment systems like Google Pay and others.
• Moreover, the smartwatch segment offers a range of benefits including notification, security, convenience, speed, and fitness.
• For instance, according to the International Data Corporation (IDC), in Q3 2023, global wearable device shipments hit a record 148.4 million units, a 2.6% YoY growth. The rise of smaller brands and emerging categories, along with the popularity of smartwatches and earwear, contributed to this growth. The market continues to innovate, with sleek designs and health-tracking features driving its expansion.
• Thus, the rising popularity and adoption of smartwatches are driving the wearable payment market trends.

The fitness tracker segment is anticipated to register a significant CAGR during the forecast period.

• A fitness tracker refers to a wearable payment device that monitors health and fitness and makes financial transactions.
• Moreover, the primary benefits of a fitness tracker include monitoring heart health, measurable fitness progress, targeted training, sleep tracking, and others.
• For instance, in June 2020, Xiaomi launched the Mi Smart Band 5, a device that offers improved accuracy in fitness tracking, capabilities for monitoring women's health, stress evaluation, and even a remote shutter control among other functionalities.
• Therefore, the increasing innovation associated with fitness trackers is anticipated to boost the wearable payment market growth during the forecast period.

By Technology:

Based on the technology, the market is segmented into NFC, RFID, QR, and barcodes.

The NFC segment accounted for the largest revenue share of the total wearable payment market share in 2023 and is also anticipated to register the fastest CAGR during the forecast period.

• NFC, or Near Field Communication, in wearable payments, is a technology that enables quick and secure contactless transactions.
• Wearable devices like smartwatches or fitness trackers use an NFC chip to communicate with payment terminals, allowing users to make payments with a simple tap.
• Moreover, the primary benefits of a contactless payment system include versatility, integration with wearable devices, security, ease of use, data storage, and others.
• For instance, in April 2022, MagTek introduced the DynaProx series of touchless readers, entering a new era of touchless payments. Both the DynaProx and DynaProx BCR models are equipped with NFC technology, featuring a barcode camera capable of reading various 1D and 2D barcodes.
• Therefore, the growing integration and adoption of NFC technology in wearable and IoT devices are anticipated to boost the wearable payment market demand during the forecast period.

By Payment Mode:

Based on the payment mode, the market is segmented into credit cards, debit cards, mobile payments, and cryptocurrency.

The mobile payments segment accounted for the largest revenue share of the overall wearable payment market share in the year 2023.

• Mobile payment refers to a financial transaction made through a mobile device.
• Mobile payment allows the purchase of goods, services, and even money transfers through portable electronics like smartphones or tablets.
• Moreover, mobile payment offers a range of benefits including convenience, speed and efficiency, security, expanded payment options, effective financial management, and others.
• For instance, according to the Indian payments handbook 2023-2028, Payments made via UPI increased by 80% over the previous fiscal year. UPI accounted for more than 75% of the total transaction volume of India's retail digital payments in February 2023. In the first quarter of FY 2023–24, transaction volume reached 24.9 billion.
• Thus, the rising adoption of mobile payments is driving the wearable payment market demand.

The credit card segment is anticipated to register the fastest CAGR during the forecast period.

• A credit card refers to a financial tool issued by a bank or financial institution.
• Credit allows users to borrow funds to make purchases or get cash advances.
• Moreover, the primary benefits of credit cards include rewards, convenience, fraud protection, increased purchasing power, interest-free credit, travel benefits, and others.
• For instance, in March 2021, Axis Bank launched a Wear N Pay device offering a convenient mode of payment solution, featuring activation benefits, transaction limit, cashback, security, and others.
• Therefore, segmental trends analysis shows that the above factor is anticipated to boost the wearable payment market trends during the forecast period.

By End Use:

Based on the end use, the market is segmented into transportation, retail, healthcare, festivals and events, and others.

The retail segment accounted for the largest revenue share in the year 2023.

• In the retail sector, wearable devices including smartwatches or fitness bands are used to make contactless payments at retail stores.
• The technology offers a secure, convenient, and fast method for consumers to pay for their purchases without the need for cash or a card.
• Moreover, the use of wearable payment devices in the retail sector offers a retail offer range of benefits including efficiency, speed, security, convenience, and others.
• For instance, in September 2023, Pine Labs launched Mini, an innovative device that accepts both QR and Card payments. While most Point of Sale (PoS) devices in India are designed for debit/credit card users, Pine Labs has introduced a device that prioritizes QR codes and supports contactless card payments, specifically aimed at Small and Medium Enterprises (SMEs). This cost-effective product is anticipated to significantly impact digital payments.
• Thus, the rising utilization of wearable payment in the retail industry is driving the market.

The healthcare segment is anticipated to register the fastest CAGR during the forecast period.

• Healthcare segment regarding the application of wearable devices, such as smartwatches or fitness bands, to make contactless payments for health services. This includes payments for doctor's appointments, pharmacy bills, hospital charges, and more.
• The technology offers a secure, convenient, and efficient method for patients and healthcare providers to handle financial transactions, enhancing the overall healthcare experience.
• Moreover, the primary benefits of using wearable payment devices in the healthcare sector include reduced administrative burden, security, innovation, speed, and convenience.
• For instance, according to J.P. Morgan the COVID-19 pandemic has fast-tracked the use of contactless payments in various sectors, including healthcare. Hospitals have upgraded their systems to meet the high demand for electronic payments. For example, Boston Children's Hospital adopted a cashless payment strategy and saw significant improvements. As healthcare payments evolve, hospital leaders need to consider factors like the popularity of contactless payments, phased implementation, cross-functional collaboration, and others.
• Therefore, the rising application of wearable payment in the healthcare sector is anticipated to boost the market during the forecast period.