Wearable Payments in India

There are many advantages of using wearable technology for making payments. Some of them are as follows:  

• Easy and Quick to Use: Making payments through these devices is very simple and easy, as you only need to tap on the machine. You do not need to take out your card or phone. This can make your daily shopping faster and saves your a lot of time at checkout. 
• Safe and Less Risky: Your card details are protected through secure methods like tokenization, and there is less chance of theft because the device stays on your body. Therefore, there is less chance of losing the device or someone stealing your information. 
• Good for Travel, Events, and Big Festivals: These can be used while travelling, going to the gym, attending any function or festival, as you can move freely and make payments easily without carrying many things like debit cards, credit cards, or cash. 
• Easy Rewards Earning: You can easily earn rewards and discounts with wearable payment devices, as these are linked to loyalty programs. This makes your everyday purchase more rewarding and encourages you to frequently use wearable payment devices. 

How Do Wearable Payments Work? 

Wearable payments work with the help of small and secure wireless technologies like NFC and RFID. Here is the explanation of both technologies:  

1. Radio Frequency Identification (RFID): These devices contain an embedded chip with an RFID tag, which is used as a unique identifier. The RFID reader scans gather all the customer’s information from a distance. Therefore, it is suitable for wearable payment devices like rings, bracelets, and so on. 

1. Near Field Communication (NFC): NFC is a wireless communication technology that is used in devices like smartwatches and fitness trackers to transfer information between two devices within a few centimetres. This is ideal for exchanging short amounts of data. 

Current Market Trends of Wearable Payment Devices 

Given below are the current popular wearable payment devices that are used by individuals: 

1. Apple Watch 

1. Wear n’ Pay wristband by Axis Bank 

1. Titan Pay smartwatch by SBI 

1. Fitbit trackers 

1. Samsung Gear 

1. Ringly from MasterCard 

1. CashCuff shirts 

1. Cap2Pay 

1. Jawbone UP4 Fitness Tracker 

1. Fitbit trackers 

Factors Limiting the Rise of Wearable Payments in India 

No doubt that wearable payments are growing in India, but there are still several challenges that slow down their wider adoption. These are as follows:  

• Transaction Limits: RBI has set the limit of Rs.5,000 for making contactless payments. Therefore, people cannot use this method freely. When transactions exceed this limit, users need to switch to another method, which affects convenience and overall user experience. 
• Limited Customer Reach: Because of the cost, everyone cannot afford these wearable payments devices. Moreover, many consumers continue to trust traditional payment methods more. It takes some time to build trust with new technology, and not all users feel confident relying on wearable devices for making any payments. 
• Insufficient Infrastructure: Wearable payments can only work with contactless POS machines or NFC‑enabled payment terminals. This machine requires a lot of investment, which small businesses often hesitate over due to costs or additional service charges. This is also a main cause which limits the growth of wearable payment.