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BizReport : Trends & Ideas archives : July 29, 2015

By 2020, wearables will account for one-fifth of mobile transactions

Boom times are ahead for mobile payments made via wearable devices, according to a new report from market research firm Tractica.

by Helen Leggatt

Tractica's report on wearable payments predicts that transaction volumes will increase significantly over the next five years. This year, transaction volumes will hit $3.1billion, rising to a whopping $501.1billion by 2020.

By 2020, wearable transactions will account for about one-fifth of all mobile transactions and 1% of all cashless payments in retail.

According to the report, some of the biggest names in banking and technology have been motivated by consumer acceptance from early trials and deployments.

"Wearable payments are just getting started. Apple Pay for the Apple Watch is the first big effort at enabling payments with the wrist. Soon to be launched, Android Pay and Samsung Pay are other prominent digital wallet solutions that will support smartwatch payments," says Tractica research director Aditya Kaul.

"Key early market initiatives include trials and deployments of Barclays' bPay system in the United Kingdom, Swatch's partnership with UnionPay to enable wearable payments, Alipay's partnership with Xiaomi in China, and Disney's successful deployment of its MagicBand closed-loop payment and ticketing system at its theme parks, among others."

Image via Shutterstock

Tags: mobile, payment technology, technology, wearables

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