GCC Wearable Payments Market
GCC Wearable Payments Market Size Zooming to Cross USD 89.7 Billion by 2029
Published | 01 January 2023
GCC wearable payments market size is booming owing to an increasing demand for host card emulation (HCE) and adoption of near field communication (NFC) technology, growing young population, and increasing popularity of contactless payment methods.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated GCC wearable payments market size at USD 54.84 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects GCC wearable payments market size to grow at a significant CAGR of 26.5%, reaching a value of USD 89.72 billion by 2029. The increasing use of contactless cards and wearable devices due to COVID-19 pandemic, spurring demand for contactless payments for secure and safer payment transactions, and the increasing use of NFC technology are driving the growth of wearable payments market in the GCC region. Wearable devices, such as watches, wristbands, and smart rings have become increasingly popular in recent years. They can detect, analyze, and transmit data about the body's vital signs. They are Internet of Things (IoT)-enabled devices that actively exchange data with the operator, manufacturer, and other connected devices. These devices are also capable of making contactless payments. People have been wary of using physical cards for payment at retail outlets since the beginning of the COVID-19 pandemic due to the risk of infection. People prefer contactless payment via wearable devices and smartphones for safer transactions.
GCC Wearable Payments Market – Overview
Wearable items include anything that can be attached to the body and used to take payments of any kind. Smartwatches and fitness trackers are the two most widely used wearables. They connect a device to a user's bank account through services, such as Apple Pay and Samsung Pay. Due to gadgets like smartwatches, virtual reality (VR) and augmented reality (AR) technologies, smart jackets, and a wide range of other devices, the world is moving toward a more connected existence. In the context of healthcare, wearable technology refers to electronic devices that people can wear, such as Fitbits and smartwatches, and which are designed to collect data on their activity and health.
Opportunity: Deepening NFC Penetration
Many e-banking sites use wearable payments systems. These e-banking platforms are built to use NFC (near field communication) technology in their transactions, allowing for seamless payments. Cost savings associated with the implementation of NFC technology boost technological demand. The NFC technology is widely used in businesses to transfer data from computers to contactless payment terminals such as NFC tags and smartphones.
Battery issues in wearable devices
To ensure the device's smooth operation, a wearable device must be recharged regularly. If the device becomes discharged, it immediately disconnects the user. It can lead to insufficient data or a missing data cluster, which can disrupt the payment process. Because of improved technologies and form factors, wearable payment devices are becoming smaller than ever, necessitating the use of small-sized batteries to power payment functionality. Furthermore, when advanced operating systems power a wearable device, a large battery backup is required to ensure continuous performance. Direct cellular network connectivity, on the other hand, can quickly deplete the battery of wearable devices. It may reduce battery life.
Impact of COVID-19 on GCC Wearable Payments Market
COVID-19 pandemic had a positive impact on wearable payments market growth. During the pandemic, customers prefer contactless payments, which is expected to accelerate the adoption of wearable devices. However, the market's expansion is anticipated to be hampered by factors such as the devices' short battery lives, high cost, and security concerns. Due to the high costs of devices, manufacturers are unable to introduce their products into the market, resulting in limited production. These payment devices are out of reach for many consumers due to their high cost. The increased competition and low product awareness are also anticipated to limit the growth of GCC wearable payments market.
GCC Wearable Payments Market – By Device Type
GCC wearable payments market by device type is segmented into Smart Rings, Fitness Trackers, Smart Watches, Fitness Wristbands, and Others. The market for fitness trackers has the largest market share. Fitness trackers are expected to gain traction because of the rising popularity of various fitness devices and the growing number of fitness enthusiasts in the GCC. Numerous vendors are now including mobile payments in their fitness trackers. Fitness trackers are also a popular choice among consumers due to their improved security features, which protect users from fraud and identity theft when making purchases.
The smartwatch segment is expected to grow at the fastest rate during the forecast period. The focus of vendors on developing affordable smartwatches is expected to increase their uptake over the forecast period. Users can pay their bills more easily thanks to the smartwatches' Bluetooth, NFC, or RF connections to smartphones. For example, well-known companies, such as Apple Inc. and Samsung Electronics, have added Bluetooth connectivity to their smartphones so that users can make better use of their smartwatches.
GCC wearable payments market is fiercely competitive. Prominent players in GCC wearable payments market include Apple, Inc., Barclays PLC, Google LLC, MasterCard, Samsung Electronics, Visa Inc., and Wirecard. These companies use various strategies, including increasing investments in their R&D activities, mergers, and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in GCC wearable payments market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of GCC Wearable Payments Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in GCC Wearable Payments Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
BlueWeave Consulting provides comprehensive Market Intelligence (MI) Solutions to businesses regarding various products and services online and offline. We offer all-inclusive market research reports by analyzing both qualitative and quantitative data to boost the performance of your business solutions. BlueWeave has built its reputation from the scratch by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.
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