Large Amount of Banking Will Be Done on Wearables by 2020
Mobile banking has grown tremendously in the past few years, and is projected to reach one billion users by the end of this year, according to new data from Juniper Research. By the end of 2020, that number could reach two billion.
But the surprising finding in the data is that wearables, like the Apple Watch, will be responsible for approximately 100 million annual mobile banking sessions by the end of 2020. This is a huge increase from the 2015 estimates of only 10 million transactions.
The tremendous growth expected in wearable transactions is largely due to the amount of faith researchers have in wearable technology. As we progress further into the world of mobile wallets, the demand for easy, convenient access to cashless and cardless payments will be stronger than ever.
The main hindrance in the potential growth of wearable technology in the mobile payment sector is in the way wearables currently work. Most apps are only designed to allow users to see their account balances on their smartwatches, not process transactions like they would with their phones. Once these apps more readily allow users to use near field communication payments or simply process transactions through their wearables, the hefty jump Juniper is predicting may seem more realistic.