Contactless has never been emphasized the way we do now with the current pandemic. People are now investing in mobile, digital, or anything that would lessen interaction.
This ultimate phenomenon has paved the way for the growing contactless payment surge.
This is the primary driver why the wearable payments market and Near-Field Communication (NFC)-enabled mobile payments are trending.
There is indeed a variable of this usage. And the changing consumer behavior is driven by payment habits and trends, maturing smartwatch technologies, developing tokenization platforms, and the junction with other end verticals like the ticketing and transport, and fitness and health applications.
With these riot going all over, the forecast from the payment-fueled wearables is expected to reach $7.2 billion by the end of 2024. This is according to the survey of the research firm, ABI Research.
But what other factors affect these adoptions?
ABI Research also added some information like the consumer patronage, exposure and awareness with contactless payment, a mixture of technology maturity, and the Covid-19 effect, which is already being suggested as an alternative and precautionary hygiene measure. These all play a vital role in the growth of contactless technologies.
Wearable devices are well-informed to take advantage of this trend, with cumulative optimal and suppleness on the aspect of form-factors and available payment methods; ABI also added.
Other ecosystem players like the wearable OEMs, IP Providers, Silicon, and IP providers, including the financial application developers and payment enablers, add to the meaningful experience of the technologies that are EMV-compliant interoperable, lightweight, and intuitive UI.
The ease of the wearable payment technology, which is its unique selling proposition, can quickly assemble with other applications.
Among this is the fitness and health, and loyalty and rewards, ticketing and transport, access control, etc. which are offering up new revenue streams and business opportunities for the various stakeholders, according to ABI.
Open-loop payment systems passive devices like smartwatches are also in the forecast.
According to ABI, device type does not matter as merchant acceptance and growing consumer adoption highlights the ease and convenience of wearable-enabled payments.
Among the top players in the market using these are MasterCard, CPI Card Group, Apple, G+D, Idemia, Infineon, NXP, Qualcomm, and Thales Gemalto, into the innovative solutions in the space.
“While wearable payments is a small market today, it is not niche. There are increasing and lucrative opportunities that will continue to push adoption and usage, and showcase new applications, including M2M payments, pay on demand, micropayments, 5G for instant B2B payments, and beyond, such as access control and transit,” it said.
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