Wearables To Account For 20 Percent Of All Mobile Transactions By 2020

Retailers who warm to wearable payments now will grab a greater chunk of the coming revenue.

By 2020, wearable transactions will account for about twenty percent of all mobile transactions and one percent of all cashless payments in retail, according to a Tractica report.

The report also forecasts that transaction volumes will hit $501.1 billion in the same year, meaning that the revenue possibilities for businesses are enormous.072614-wearables-hed-960

In other words, it pays for retailers to start embracing the technology now. From consumer enthusiasm about the Apple Watch to brand demonstrations like Target’s connected home, wearable acceptance is already growing rapidly. Brands that are on the forefront of giving consumers more mobile payment options — and using the devices to enhance in-store experience — are likely to grab a bigger chunk of the coming dollars.

According to the report, some of the biggest names in banking and tech are already pioneering new strategies around IoT —motivated by consumer acceptance from early trials and deployments.

“Wearable payments are just getting started. Apple Pay for the Apple Watch is the first big effort at enabling payments with the wrist,” says Aditya Kaul, Tractica’s research director. “Soon to be launched, Android Pay and Samsung Pay are other prominent digital wallet solutions that will support smartwatch payments.”

And while the wearable space must continue to grow before smartwatches in particular can be tapped for their full marketing potential, the opportunities for retailers extend far beyond payments.

As Point Inside’s Mike McMurry told GeoMarketing in April, “the Apple Watch has the potential to enable new in-store marketing opportunities by using beacons to create a form of micro-communication between retailers and shoppers using a device that is always out and available. This enables improved real-time customer engagement and targeted messaging for retailers who seize the opportunity.”

About The Author
Lauryn Chamberlain Lauryn Chamberlain @laurynchamberla

Lauryn Chamberlain is the Associate Editor of A New York City based journalist, she specializes in stories related to retail, dining, hospitality, and travel.