“The aim is to let customers pay for things by simply tapping a bracelet, key ring, or other wearable device at an NFC payment terminal.”
Fidesmo, a Sweden-based developer of contactless transaction technologies, has entered into a new partnership with Länsförsäkringar Bank focused on wearable payments.
The collaboration will revolve around Fidesmo Pay, Fidesmo’s wearable payments platform, which will enable Länsförsäkringar Bank to tokenize payment cards in the form of wearable devices, which can then be used by Länsförsäkringar customers to make contactless payments. The aim is to let customers pay for things by simply tapping a bracelet, key ring, or other wearable device at an NFC payment terminal.
It’s an approach to payments that could find market traction in the coming years. Consumer survey data collected by Juniper Research has found that almost half of consumers in the US, the UK, and Australia would be willing to make a payment with a wearable device, and 94 percent of Point-of-Sale devices are expected to support contactless payments by 2024. That would seem to bode well for Fidesmo and its partners.
Länsförsäkringar Bank joins a number of financial services providers that have teamed up with Fidesmo to support Fidesmo Pay, including Nordea, KBC, and Marginalen Bank. The company has established partnerships with Visa and Mastercard.
“We are happy to see that more and more banks offer tokenized payments to their customers, and wearable payments being one of them,” said Fidesmo CEO Mattias Eld. “We are looking forward to expanding the Fidesmo Pay offering in the Swedish market together with Länsförsäkringar.”
The news comes after Fidesmo established a partnership with HID Global last year, which would see the integration of HID’s Seos credentialing technology into Secure Element chips used in wearable devices.