Digital payments using wearables devices such as the combination of Apple Pay and the Apple Watch will drive more than $500 billion in transaction volume annually by 2020, according to Tractica. That will be up from $3.1 billion in 2015.
The market intelligence firm anticipates that, by 2020, wearable payments will represent approximately 20% of the total mobile proximity transaction volume and about 1% of total cashless transactions in retail.
“Wearable payments are just getting started,” says research director Aditya Kaul. “Apple Pay for the Apple Watch is the first big effort at enabling payments with the wrist.”