Banking Wearable Market Expected to Reach $62.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Banking Wearable Market," The banking wearable market was valued at $13.7 billion in 2022, and is estimated to reach $62.7 billion by 2032, growing at a CAGR of 16.8% from 2023 to 2032.

The banking wearable market has been growing steadily over the years due to the increasing demand host card emulation (HCE) and the growing adoption of cashless transactions. Moreover, numerous e-banking platforms are adopting wearable payment devices. These platforms are focusing on integrating the near field communication (NFC) technology into their transaction operations, which facilitates seamless payments. In addition, the decreasing costs for deploying NFC technology are encouraging the rise in demand for the technology.

Businesses widely use this technology to transfer data from their devices to various contactless payment terminals, such as NFC tags and smartphones. Moreover, many retail and transportation companies are implementing banking wearable technology to give customers a simpler, more practical experience, accelerating the market's expansion. Furthermore, the increasing demand for wearable payment devices owing to their fast payment capability will foster the banking wearable market growth during the forecast period.

Furthermore, major market players have undertaken various strategies to increase the competition and offer enhanced services to their customers. For instance, in September 2022, Zaggle announced the launch of a key fob called the Zakey Yespay RuPay ON-THE-GO, which was the part of a new range of on-the-go wearables, in partnership with YES BANK on the RuPay network, powered by National Payments Corporation of India (NPCI). Therefore, this partnership helped for the growth of banking wearable market. Moreover, in December 2020, Mastercard, partnered with MatchMove, a Singapore based ‘Banking-as-a-Service’ provider and Tappy Technologies, a world leading wearable payment integrator, introduced tokenization into a small, flexible chip which can be attached to a range of battery-less wearables and accessories such as watchstraps or keyrings, turning them into secure contactless payments devices. With the help of this partnership MatchMove cardholders were able add their MatchMove Mastercard to this payment chip by simply placing the wearable or the accessory on a Bluetooth-connected device developed by Tappy Technologies.

On the technology, the near retail segment attained the highest banking wearable market size in 2022. The surge in penetration of wearable devices among end users and rise in penetration of QR codes on various grocery shops for improving the customers' overall experience drive the market growth.

On the basis of region, North America attained the highest banking wearable market share in 2022. The banking wearable industry in North America is witnessing increased adoption of technology-driven solutions. North American financial institutions recognized the potential of banking wearable’s and supported their integration into their services. Financial institutions have invested in partnerships with wearable device manufacturers, developed mobile banking applications specifically for wearables, and upgraded their infrastructure to enable seamless integration.  

The pandemic had accelerated the transition to contactless payment methods to minimize physical contact with surfaces. Payment-enabled wearables, such as smartwatches or wristbands, provided convenient and secure contactless payment options. As a result, demand for payment-enabled wearables increased during the pandemic. Further, the shift towards remote banking and digital experiences had created opportunities for banking wearable providers that had offered seamless access to account information, transaction alerts, and authorization capabilities. In addition, the pandemic had highlighted the importance of digital innovation and technology adoption across various sectors. Wearable technology companies continued to innovate and introduce new features and capabilities to enhance the user experience. Therefore, COVID-19 had a positive impact on the banking wearable market trends.

Key Findings of the Study

• By type, the fitness tracker segment led the banking wearable market in terms of revenue in 2022.
• By application, the retail segment led the banking wearable market in terms of revenue in 2022.
• By technology, the near field communication (NFC) segment led the banking wearable market in terms of revenue in 2022.
• By region, North America generated the highest revenue in 2022.

The key players profiled in the banking wearable market analysis are Google LLC, Apple Inc., Fidesmo, Xiaomi Corporation, Visa Inc., Wirecard, Thales, Nymi Inc., Gemalto NV, and Samsung Electronics. These players have adopted various strategies to increase their market penetration and strengthen their position in the banking wearable industry.