“Smart hardware, especially wearables, is fast becoming the next big thing in the connected world,” said Stefan Auerbach, group executive Mobile Security at G&D. “In wearables such as watches, fitness/wellness trackers, or accessories, payment functions are set to be integrated as a standard feature, and we expect this trend to expand to other devices.”
According to the International Data Corporation (IDC), the worldwide wearable device market will reach a total of 215 million units shipped in 2019. The market for wristwear devices like smart watches and fitness/wellness trackers is the most popular segment among wearables and will almost double from the 65 million units shipped in 2015 to 124 million in 2019.
The next wave of wearables will likely support secure payment, secure and convenient authentication mechanisms and transit functions through contactless NFC or Bluetooth Low Energy (BLE) technologies, as well as mobile application downloads. The seamless connection between the smart wearable and the consumer’s mobile phone enables consumers to open and check their bank accounts, transfer money and conduct other account management services completely over the air.
Many wearables will also provide biometric data, making it, among other things, possible to distinguish between the rightful wearer and someone who is simply wearing the device.