HAMPSHIRE, U.K.—Mobile banking is projected to reach one billion users by the end of 2015 and two billion by the end of 2020, according to new research that also shows wearables will play a growing role in that rise.
Wearables, like the Apple Watch, will be responsible for approximately 100 million annual mobile banking sessions by the end of 2020, Juniper Research reports.
“This is a huge increase from the 2015 estimates of only 10 million transactions,” said LowCard.com’s Lynn Oldshue. “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, Oldshue explained.
“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,” Oldshue said.