Ryan J. Moore, PhD

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Growth of Wearable technology for Payments

Wearable technology is changing the way we pay, making transactions faster, easier, and more secure. Devices like smartwatches and fitness trackers now allow people to make payments with just a tap, using features like biometric authentication and Near-Field Communication (NFC). These technologies help keep payments safe by using advanced encryption and unique user identification methods. As more people choose wearable payments for their convenience, businesses and banks are working to make them even safer and more reliable. However, security risks, such as hackers trying to steal passcodes through motion sensors, remain a challenge. Despite these concerns, the future of wearable payments looks promising, with new advancements making transactions even smoother and more secure (Technavio, 2024).

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History of Wearable Devices

Wearable technology for payments has evolved significantly over the past few decades, transforming from a futuristic concept into a widely used payment method. The journey began in the early 2000s when contactless payment technology, such as RFID (Radio Frequency Identification) and NFC (Near-Field Communication), started gaining traction. Early adopters experimented with key fobs and wristbands embedded with payment chips, primarily used for small transactions in places like amusement parks and public transportation (Pan et al., 2024).

The real breakthrough came in the 2010s with the rise of smartwatches and fitness trackers. Companies like Apple, Samsung, and Garmin integrated payment capabilities into their devices, allowing users to link credit cards and make secure, tap-to-pay transactions. Biometric authentication, such as fingerprint and heart rate recognition, soon followed, enhancing security and user trust (Hidayat-ur-Rehman et al., 2022).

As technology advanced, wearable payments expanded beyond NFC, incorporating Bluetooth Low Energy (BLE) and Ultra-Wideband (UWB) for faster and more secure transactions. Blockchain and encrypted digital wallets further strengthened security, reducing fraud risks. Today, wearable payments continue to grow in popularity, driven by convenience, speed, and the increasing demand for cashless transactions. Looking ahead, innovations like AI-powered authentication and biometric wearables are expected to make transactions even more seamless and secure (Vivek, 2024).