Wearable payment is defined as the act of making payments using devices that include wireless technologies such as NFC and RFID. Wearable payment devices are now being offered to customers more than just a convenient, contactless mode of payment since COVID-19 was spreading. Additionally, they can be used in both a healthy and safe manner. As an example, in the first quarter of 2020, MasterCard saw an increase of 40% in contactless payments. The technology is also used by 60% of all VISA customers outside of the United States for contactless payments. As a consequence, there has been a number of financial institutions, banks, and payment service providers who have accepted the digital payment agenda.
The global Wearable Payments equipment industry is classified as Near Field Communication Technology (NFC), QR & Barcode, and Radio Frequency Identification (RFID). Among these barcode technology segment has the largest market share in 2020. Consumers are being focused on improving their experience at the checkout and reducing friction. Barcode scanners integrated with wearable devices allow them to scan and go. Customers can scan their items effortlessly while shopping with this technology.
Prominent players operating in this industry include Apple Inc. (US) Samsung Electronics Co., Ltd. (South Korea), Garmin AB (Switzerland), Xiaomi Corporation (China), Fitbit Inc. (US), Google LLC (US), Barclays PLC (UK), Tappy Technologies Ltd. (US), VISA Inc. (US), PayPal Holding Inc. (US), and Mastercard, Inc.
Fitbit, a wearable device company, has been acquired by Google LLC for USD 2.1 billion in an all-cash deal in January 2021. As a result of the acquisition, the internet giant will increase competition oversight while strengthening its hardware business.