Page 76 - Pay Magazine s2014

digital money
Who Are You Wearing?
and interaction, whether by touch, voice, and even movements and gestures. What’s most interesting to payments industry innovators is how wearable payments technology eventually could improve payments’ security and loyalty features and enhance users’ ability to customize their experiences with e-commerce, shopping, dining and managing finances, to name a few.
Smartwatches with payments capabilities just scratch the surface of what’s on the drawing board for wearable payments technology, as various thinkers explore consumer demand and the growth potential of some intriguing new payments form factors, including bracelets, gloves, clothing, shoes and even a connected car, providing drivers with a hands-free approach to order and pay for takeout food while on the way to a restaurant. (See sidebar on page 77.)
“Some of the ideas for new wearable payments technology may sound far out but not when you consider the direction con- tactless payments are going globally,” says Rodman Reef, a payments industry consultant. Incremental—but profound— changes are afoot in the POS landscape, as mobile payments services gather momentum, and major merchants and card issuers migrate this year to the EMV chip standard, Reef observes. “When merchants upgrade their termi- nals to accept EMV-enabled
What Consumers Want in a smartWatCh
Fitness Bands, smartWatCh sales to soar
GloBal WearaBles market shipment ForeCast
65%
FitBit accounted for 3 million of 4.6 million total sales
in 2014.
55%
apple WatCh will account for at least 15.4 million of 28.1 million total sales in 2015 (projected).
source: Strategy Analytics
Smartwatches, Fitness Bands and Other Wearables in Millions
126.1
120
90
60
30
0
45.1%
CaGr
45.7 19.6
2014 2015 2019
source: International Data Corp.
35%
health inFormation storaGe
?
46%
Wireless payments
source: GfK consumer survey of 1,000 smartphone owners in the U.S., China, U.K., South Korea and Germany conducted August 2014
38%
puBliC transit aCCess
45%
seCure identiFiCation
74