Wearable Payment Devices Market Trends

Growth Drivers

• Easier Compatibility with Smartphones: Wearable devices connected to the smartphones can be used for carrying out major functions. Additionally, the ease of use of the technology has been enhanced in the recent years. Owing to these factors, the market is anticipated to grow at a rapid pace during the forecast period.   Rising sales of smart watches that are compatible with the smartphones is further predicted to drive the market growth during the forecast period.
• Increasing Investments in Research and Development: Increasing investment in wearable payment devices research and development, in order to invent sophisticated technology that helps in enhancing end product performance, is estimated to aid in boosting the market growth over the next few years.
• Rising Adoption of Cashless Transactions: Governments across the world have been encouraging the usage of digital transactions for convenience and transparency. Additionally, upon the COVID-19 outbreak, contactless payment solutions have become a preferred mode of payment. This is predicted to result in a significant market growth in future.

Challenges

• Limited Battery Life of the Devices: As the features of smartphones and smart watches are increasing, it is taking a toll on the battery life of devices in which the technological development has not kept pace with the software. This is estimated to have negative impact on the market growth over the forecast period.
• Rising Number of Digital Scams: Rising digitalization is giving rise to different types of financial frauds such as remote access mobile application scam, phishing, scams using social engineering among others. It has created a wide trust deficit among the affected people who feel digital payments are not secure. This is further predicted to negatively affect the market growth.