Smartwatches and payment wristbands will continue to grow within the mobile payments sector, driving more than $500 billion in transactions by 2020, according to a Tractica report.
According to the market intelligence firm, wearable payment transaction volume will grow from $3.1bn in 2015 to $501.1bn worldwide by 2020, by which time wearable payments will represent approximately 20 per cent of the total mobile proximity transaction volume and about 1 per cent of total cashless transactions in retail.
‘‘Wearable payments are just getting started,’’ says Tractica research director Aditya Kaul.
‘‘Tractica believes that Apple Pay is the best candidate for the killer app that will make the smart watch an indispensable wearable device. With the wallet digitally integrated into a smart watch, we are likely to witness the next technology shift for the wristwatch.’’
Wearable devices are becoming more accessible to consumers in the United Kingdom. Last month Payment Eye reported that Barclays is releasing a new range of contactless payment devices that includes an updated version of its NFC-enabled wristband, a fob and a sticker.
‘‘A number of opportunities can be unlocked by having wearables as a part of a payment solution, with the wearable not just becoming an easy wave of the wrist, but a gateway to better understanding the customer.’’
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