CaixaBank is giving 15,000 wristbands to customers that will enable them to make contactless payments to hundreds of thousands of businesses in Spain.
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Users will be able to make payments that are under €20 simply by moving their wrists near the point of sale systems.
A microtag inside the wristband contains the customer’s encrypted card details, protected by the same security guarantees as normal cards.
To prevent unauthorised use, a CaixaBank application immediately alerts users to any transactions made with the device.
“The contactless wristband provides users with wearable financial services and all the benefits that these entail, particularly in terms of convenience, security and speed when making payments,” said the bank.
“By diversifying payment formats, customers can choose the system that suits them best – card, mobile or wearable device.”
Financial services firms are pioneering wearable technology as consumers and business clients seek new ways of using their services.
More on wearable technology
One Australian bank is trialling the use of Google Glass to let customers view their balances without logging into accounts. And Westpac Banking Corporation’s New Zealand operation is testing its own app for customers to view balances using Google Glass.
Other wearable technology developments in the finance sector include the ability to check bank accounts on watches, along with rings that can alert traders to changes in the market.
According to Gartner, the strongest consumer base for wearable electronics is fitness enthusiasts, but wider interest in these devices is leading to broader adoption.
Worldwide revenue from wearable electronic devices, apps and services for fitness and personal health is anticipated to be $1.6bn this year, rising to $5bn by 2016.