According to a recent report from Tractica, wearable payment transaction volume will grow from $3.1 billion in 2015 to $501 billion worldwide by 2020. The market intelligence firm anticipates that, in 5 years, wearable payments will represent approximately 20% of the total mobile proximity transaction volume and about 1% of total cashless transactions in retail.
Samsung Pay, Alipay, bPay, Apple Pay, and UnionPay have been some of the payment systems associated with the latest wearables. Only time will tell which wearables will prove to be fashionable essentials vs faddish flashes in the pan.
Samsung Pay is said to be available for Samsung Gear S2 users in November. The Gear S2 gives users instant shopping and e-commerce access.
- With FidMe, all of your loyalty cards, coupons and in-store notifications get sent straight to your smartwatch.
- Through the payment bar code system of Alipay, users can complete transactions at various offline supermarkets and restaurants, without having the need to carry any cellphone or cash.
Lyle & Scott has developed the first Contactless Jacket with Barclaycard bPay technology. A bPay chip inserts into the jacket cuff and the wearer can pay for items £30 and under wherever contactless payments are accepted. The Contactless Jacket links to any UK registered Visa® or MasterCard® debit or credit card.
- Fit Pay is another wearable payment technology company, Our platform is transforming contactless payments by enabling wearables to transact secure, frictionless payments, said Michael Orlando, co-founder and CEO of Fit Pay, Inc. More than a 100 million consumers currently own a wearable device, but approximately one-third stop using it within six months. Fit Pay’s platform will enable wearables to seamlessly transact payments, giving consumers a convenient and highly secure way to pay and a reason to put on their wearable every day.
It appears that wearables are still looking for a killer app that will help the category graduate from discretionary to indisposable. Will payments and commerce applications provide that essential value add for consumers to take their new toys more seriously?