The Contactless Payment Potential

Payments Leader

Posted on February 19, 2016

Wearable Payments

Top Wearable Trends to Watch

The potential for contactless payments is increasing with popularity of wearable technology. According to eMarketer’s forecast we can expect to see continuous double digit growth in the number of U.S. adults 18 and over using wearables. Device use including smartwatches and fitness trackers increased by 57.7 percent in 2015 compared to 2014. The 39.5 million using wearables is expected to double by 2018 to 81.7 million. Let’s take a look at the top wearable trends on the market now.

Fitbit will continue to be the top activity tracker brand with an increase of 13% usage between February and October 2015 according to The NPD Group’s fall 2015 Consumers and Wearables Report. Don’t count out their competitors like Garmin & Xiaomi’s Mi Band.

Apps to be Advanced Targets

Wearable apps will become more sophisticated and expensive as a way to offset shrinking profit margins, according to Weston Henerek of The NPD Group. The increase of premium apps will increase the probability of hackers targeting wearables. In 2016, enterprises “will need to set network policies that can manage access levels for these devices,” says Kurt Roemer, chief security strategist at Citrix.

Wearables to Watch

Smartwatches and activity trackers dominate the wearables retail space but wearables are becoming more innovative. Samsung has recently announced a new shoe-based form of wearable tech called IOFIT to debut globally at Mobile World Congress 2016. Technology designed to focus on sleep in 2016 will also increase along with other niche wearables becoming commonplace. Sun exposure bracelets, smart rings, and smart clothing will advance the wearable industry, apps industry and ultimately the way we value everyday items.

As the market for wearables grows, so will wearable payments technology to be used in retailers across the globe. Payment platforms are developing programs that enable contactless payment capabilities on a wide range of wearable devices. Follow @PaymentsLeader for updates!

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Payments Leader

Payments Leader from FIS provides insights on credit, loyalty, fraud and emerging payments strategies through blog posts from our industry experienced authors.