Spain's CaxiaBank has now developed its own contactless wristbands for customers who want to pay with a simple tap of the wrist.
Wearable technology has already made great waves in the fitness sector, and it could now take over the payments industry. With the recent introduction of Apple Pay, we’re already seeing the replacement of the traditional wallet becoming mainstream. In Spain, CaxiaBank has now developed its own contactless wristbands for customers who want to pay with a simple tap of the wrist.
Consumers are already getting used to paying for small payments without signing or entering a PIN, thanks to the widespread usage of contactless cards. However, these cards still require bank customers to carry around a physical wallet. To solve this problem, major Spanish bank La Caixa has now created a wristband that uses contactless payment technology. Inside is a microtag with the customer’s encrypted card details, protected with the same EMV security system as standard cards. The contactless chip connects to POS systems to complete transactions. A companion app alerts users immediately of any transactions made using the device. At present, the wristband can be used at more than 300,000 contactless terminals across Spain.
CaxiaBank is setting itself apart from competitors by being the first to move into wearable tech. How can other large institutions behave more like startups to disrupt the industry rather than becoming disrupted themselves?