Allied Market Research’s report, “Wearable Payments Market,” says the global wearable payments industry garnered $285 billion in 2019, and is projected to reach $1.37 trillion by 2027, growing at a compound annual growth rate of 21.7% from 2020 to 2027.
The research group says the rise in adoption of cashless payments across the globe, enhanced customer experience offered by wearable payment mediums, emerging demand for wearable devices, and contactless payment for secure and safer payment transactions have boosted the growth of the global wearable payments market. However, high cost of wearable devices and risk of stolen and limited battery life of wearable devices hamper the market.
On the contrary, says Allied Market Research, the rise in use of NFC, RFID, and host card emulation technology in wearable payments is expected to create lucrative opportunities for the market players in the coming years.
By device type, the smartwatches segment dominated the market in 2019, accounting for more than two-fifths of the global wearable payments market, owing to increase in demand for wireless fitness and sports devices, surge in health awareness among users, and rise in technological advancements in smartwatch. However, Allied Market Research says the smart rings segment is expected to register the highest compound annual growth rate of 23.7% during the study period, due to growing adoption of cloud-enabled rings among the end users across.