Prospectus of Wearable Technology Industry Analysis Report III: Commercial Applications of Wearable Technology

I.The Evolution of Wearable Technology
II.The Healthification of Wearable Technology
III. Commercial Applications of Wearable Technology
IV.Three Major Emerging Industries in Wearable Technology

1. Contactless Wristbands Poised to End the “Card Wars”

Barclaycard—“A New Contactless Payment Wristband Will Make Life Easier.”

It is a common sight to see large crowds queuing up for buses or making payments. Unfortunately, when card readers malfunction, individuals are forced to step aside and seek alternative solutions. In such scenarios, even possessing multiple cards does not guarantee a seamless experience.

This is the “Card War.” Commuters must locate the exact card in their bags every day and then tap it against the card reader.

In London, commuting passengers have already begun using contactless wristbands to pay for transit fares at subway, tram, train, and bus stations, and it will not be long before you see them deployed at more of London’s busy transportation hubs.

It is the bPayBand contactless wristband invented by Barclaycard, which will permanently end the “card wars.” No more rummaging through wallets or handbags, nor having to return to the door to fumble again; with just a blink of an eye, you can make payments effortlessly.

bPayBand drives the upgrade of contactless payments, enabling users to link their credit or debit cards to payment wristbands for small-value transactions. An estimated 300,000 outlets across the UK are expected to offer this service.

Moreover, the smoother travel experience with bPayBand has only just begun. You can use it to pay for drinks, newspapers, and sandwiches. In fact, any contactless payment of £20 or less is accepted, including at Marks & Spencer, Starbucks, Pret A Manger, McCain, and for food, clothing, and more.

This will eliminate the awkwardness of fumbling for change or digging deep into your wallet for a payment card while waiting in line, thereby slowing down transactions.

So, how long will it take before we see bPayBand deployed across the UK? In fact, it has already been tested at several major public events, including London Pride and the Barclays British Summer Time Music Festival. The result? A resounding success. As a result, bPay has now launched larger-scale trials, with the bPayBand set to be made freely available to the general public in 2015.

Innovation will not end. After covering travel and shopping payments, bPayBand will soon serve as a carrier for other applications. For instance, in sports arenas, everything from purchasing season tickets to entering on match days will be integrated into the wristband. Fans no longer need to worry about losing, wetting, forgetting, or having their season tickets stolen; they will be able to make payments seamlessly at contactless terminals using bPayBand.

Another scenario is the gym. Fitness enthusiasts often frequent local gyms for workouts, but they typically need to carry a wallet with them. By combining bPayBand with gym membership cards, this hassle can be eliminated. What else? Music festival tickets, café vouchers, school lunch queues for children, university ID cards—all of these can be integrated into the bPayBand. With user consent, merchants, brands, and institutions can leverage this technology, which is poised to lead global trends.

So, are we entering a cardless society? Mike Saunders, head of electronic payments at Barclays Credit Card, pointed out: “Wearable payment devices are becoming increasingly popular because they are fast, convenient, and secure. Customers have expressed their desire for more integrated features in these devices, including payment capabilities, indicating significant growth potential. There is also broad potential in other application areas, such as foot traffic analytics, loyalty programs, branding, merchandise, and customer recognition.”

“By providing an integrated payment platform and ticketing solution, we can help sports clubs access new data sources, thereby gaining deep insights into customer behavior. This will enable these venues to better understand their customer base, enhance loyalty, and maximize benefits through a technology-driven collaborative approach.”

A key factor that could help Bpay compete with its rivals is fashion. Many designers have shown strong interest in reimagining the brand by creating haute couture jewelry. Premium brands are also eager to give Bpay a fresh look. After all, wearable payment devices will not remain merely ordinary watches for long; therefore, they should be as stylish as they are functional.

Notably, just before this year’s Spring Festival, contactless payment functionality was launched in select regions across China, with the integration of the “Shua Shua Band,” a payable smart wearable device with sports and health monitoring capabilities released by Phoenix Cloud Technology. The “Shua Shua Band” features a built-in RFID chip compatible with the municipal public transportation all-in-one card. In addition to being usable on buses, subways, suburban railways, and public bike-sharing services, it can also be used at certain supermarkets, bakeries, welfare lottery outlets, vending machines, and beverage bottle recycling machines.

The public transportation card feature of the Shuashua smartband is currently available in Beijing and Suzhou, with plans to expand coverage to over 400 cities across China. Can such widely adopted wearable devices, primarily designed for fitness tracking, expand into the mobile payment sector? The Phoenix Cloud Technology team states that while offering standalone mobile payment or fitness tracking services may struggle to foster user dependency, integrating both functionalities creates significant convenience, naturally cultivating a loyal user base. Furthermore, additional sensors—such as those for UV radiation, PM2.5 levels, temperature, and heart rate—will be incorporated in the future, enabling users to access more comprehensive environmental and physiological data.

As Saunders proposed, the potential for application is vast.

2. Measure every heartbeat, every sprint, and every kick

Sports, from elite football to running, are being transformed by wearable technology. Here are some of the best examples.

When Germany defeated Argentina 1-0 in the dying moments of the 20th FIFA World Cup final at the Maracanã Stadium in Rio de Janeiro, claiming their first title in 24 years, it was a moment “never to be forgotten” for many. For the coaching staff, this triumph was largely attributable to the contributions of Adidas wearable devices.

In fact, both the German Football Association and EXOS rely on Adidas’s Elite Team System (ETS) for running coaches to monitor players’ training.

It cannot be said that the technology gave the German team an unfair advantage. After all, Argentine player Lionel Messi also used the same Adidas technology.

So, what is this system? How is it used by the two best teams in the world?

In short, Adidas’ miCoach ETS can measure athletes’ physiological characteristics in real time, with players’ monitoring devices transmitting biometric data to a tablet held by the coach.

Darcy Norman of EXOS explained, “One of the key metrics we track is strength—how much force athletes generate involves their physiological response in terms of energy output. If they are operating at low power yet exhibit a significant metabolic response, we know they are exhausted, and this warrants close monitoring.”

3. Jawbone’s “Internet of You” Concept

For Jawbone, the Internet of Things is not enough; consumer technology and wearable companies aim to create an “Internet of People” by building data-driven hardware and software platforms.

Jawbone aims to closely link the concept of the Internet of Things (IoT) with individual behavior.

Bandar Antabi, the project lead for special initiatives, believes that these “things” serving users lack interconnectivity; to truly put them into practice, they need to genuinely understand you.

“Just like a smart thermostat, it can automatically learn your temperature preferences at home and when you are away, and then adjust the temperature accordingly after a period of time.”

“Ideally, you would want your thermostat to know whether you are feeling hot or cold. Moreover, it should recognize that different contexts—such as having just returned from a run or having just woken up—should trigger different responses. Therefore, you need to allow it some time to learn your temperature preferences.”

Therefore, these devices must accompany you day and night, requiring infrequent charging and integrating comfortably and naturally with your body—achieving “24/7 wearability.” Hosain Rahman, CEO of Jawbone, believes that every component of a wearable device must consistently prioritize the user experience; without this, the vision of the Internet of Things will never be realized.

In his view, Jawbone’s core strategy was not confined to a mere “hardware” and “software” mindset; the integrated system was the true focal point. For instance, the UP product series was not just a wristband, but an all-in-one system that combined tracking technology, algorithms, applications, data science, and API (Application Programming Interface) partners.

Headshot believes that wearable devices will gradually evolve into more sophisticated and advanced multi-sensor devices, undergoing a transformation similar to that of smartphones.