Samsung Electronics is planning to add a mobile payments function in a smartwatch that is due to be launched next month.
Citing unnamed sources, South Korea’s Electronic Times newspaper reported that the company will use near-field communication technology to support mobile payments on the smartwatch.
Apple currently uses similar technology for the Apple Pay function in its smartwatches.
The South Korean company’s Samsung Pay mobile payments service will be launched next month with select partners.
Revenue generated by the global smartwatch market is expected to reach $32.9bn by 2020, growing at a CAGR of 67.6% between 2014 – 2020.
Smartwatch companies are investing heavily on R&D led by innovations. Top players like Samsung and Sony are counting on their R&D investments to be the prioritised strategy for increasing market shares.
Samsung announced plans to enter mobile payments in March of this year, a month after it acquired LoopPay, a company that allows retailers accept mobile payments more easily.
