FitPay backing Garmin Pay
Garmin (GRMN) recently ventured into the world of mobile payments with the launch of Garmin Pay, a contactless payments solution available on its Vivoactive 3 Smartwatch device. The launch of Garmin Pay saw Garmin follow in the footsteps of fellow wearables vendors Apple (AAPL) and Fitbit (FIT), which have launched mobile payment services that allow people to pay for purchases by simply tapping on their wrists.
Garmin’s Garmin Pay service is powered by FitPay, a wholly owned subsidiary of NXT-ID (NXTD). FitPay operates a payment platform called FitPay that enables people to make fast and secure payments on devices such as Smartphones and Smartwatches. Garmin Pay uses NFC (near-field communication) technology to support secure contactless transactions. Apple’s Apple Pay service is based on the same technology.
A $2.2 trillion market
With Garmin Pay, Garmin is gunning for revenue in the contactless payments market, which is promising to be a lucrative sector thanks to the rise of e-commerce.
Grand View Research forecasts that global contactless payments will grow to over $2.2 trillion by 2025, up from an estimated $207.7 billion in 2016. The chart above illustrates how the contactless payments market is expected to grow in the United States (SPY) between 2014 and 2025. The US contactless payments market was estimated to be $15.9 billion in 2014. Alphabet’s (GOOGL) Google with its Android Pay and Samsung (SSNLF) with its Samsung Pay are also vying for this market.
Support for contactless payments
Increasing support for contactless payment solutions among merchants and banks is one of the factors fueling growth in the contactless payments market.
Support for Garmin Pay has continued to grow among financial institutions around the world. In the United States, the service is supported by Capital One (COF) and US Bank, while internationally the service is supported by institutions such as Australia’s Commonwealth Bank and Russia’s Sberbank.