Wearable Banking On The Way

Before mobile banking has had the chance to capture the full attention of the consumer market, wearable banking is already taking over the talks about what’s next in mobile payments.

One report cites statistics from Juniper Research which “estimates 100 million wearable devices will ship by 2017, and that wearable banking and payments  via smart watches and smart glasses will be a key trend over the next one to two years.” While banks push for mobile banking, Google and Apple want banks to look beyond mobile and focus on wearables.

A Spanish bank, for example, already has a Google Glass app that allows customers to use the device to make transactions and contact customer service. Customers can also tap into the GPS to find the closest ATM or bank. Checking balances with Google Glasses is also reportedly in the works. Smart watch apps from banks and payment providers like PayPal are also being launched into the market. Apple Watch, of course, might give a new boost to mobile and wearable banking. A Nasdaq.com article calls this “The Apple effect.”

“One of the problems with wearable banking right now is there isn’t any standout device that’s pushing mass adoption. But noted Apple analyst Katy Huberty expects Apple to sell between 30 million to 60 million Apple Watches in the first 12 months — estimates that would could clearly change the wearable banking landscape if they come true,” the report said.

Apple Pay users added 1 million credit cards to the app within 72 hours of its launch, which Apple CEO Tim Cook discussed last month, and he recently has said the company leads the competition in contactless payment POS. This is another reason the article said “Apple Pay is a huge inroad for getting consumers familiar with using wearables for personal finances and tying their credit cards to a wearable device.”

Wearables have also been called gimmicky, and maybe they are, but that doesn’t mean they don’t have the capacity to impact mobile banking and help wearable banking become an equally growing trend.

“Banks are planning for that growth now because wearable banking could see a faster adoption rate than both online banking and mobile banking,” Nasdaq.com reported. “Banks are betting customers will eventually start buying wearable devices — and they don’t want to miss out. With the Apple Watch set to go on sale early next year, it’s a perfect time for banks to start betting big on wearables.”