The giants join hands! Alipay joined hands with Huawei to promote the "pay core" secure payment scheme for wearable devices [attach wearable device industry analysis]

Source: Photographic Network

On September 7, Alipay and Huawei Wear announced at the 2023 Bund Conference that they would jointly promote the "payment core" secure payment scheme for wearable devices, It aims to improve the security of wearable devices during payment. As part of the cooperation project, Alipay showed "Heartbeat Core Body Technology" and "Pay for a watch by touching a label ”And other joint programs. In addition, Huawei has become another major partner of Alipay's "payment core" after Pingtouge, Alibaba Cloud and other platforms.

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It is worth mentioning that payment cores are very small and difficult to find. According to media reports, The chip has biometric function If you wear it on your wrist, you can verify the user's identity through the admitted heartbeat, thus eliminating the step of entering a password and making payment more convenient and secure. It is understood that Alipay's "payment core" is a comprehensive solution to ensure the safe payment of wearable devices. Since its launch in March 2023, The "payment chip" is expected to be used in smart watches, bracelets, smart cards and other smart wearable devices.

Industry insiders believe that this cooperation will provide users with a diversified but more secure payment experience, And accelerate the development of wearable device industry 。 Through this news, we can learn that wearable devices are becoming an important development direction in the payment field.

The chip demand of wearable devices is high-end, and the production capacity is dominated by foreign manufacturers

The small space size and light weight requirements of wearable devices make the wearable device master chip face higher standards in chip design, process, integration, computing power, power consumption and other aspects. At the same time, the original chip manufacturers are all in the RF technology, connection performance and low latency technology, low power consumption, or high audio quality Seek breakthroughs in technologies such as active noise reduction and call noise reduction. At present, wearable device chips include Bluetooth audio chips, MCU chips, display driver chips, power management chips, etc.

The production capacity of China's wearable equipment industry is dominated by five major manufacturers

According to IDC's Quarterly Tracking Report on China's Wearable Device Market, the fourth quarter of 2021, the shipment volume of China's wearable device market in the fourth quarter of 2021 was 37.53 million units, with a year-on-year growth of 23.9%. In 2021, China's wearable market will ship nearly 140 million sets, with a year-on-year growth of 25.4%. In 2022, the shipment volume of China's wearable market will exceed 160 million units, with a year-on-year growth of 18.5% 。 IDC report shows that the top five wearable device manufacturers in China in 2020 are Huawei, Xiaomi, Apple, Oppo and Bubugao The market share is 22.3%, 19.5%, 19.2%, 4.6% and 4.0% respectively.

Stable growth will be maintained in the next five years

It is predicted that wearable devices will continue to renovate consumer technology products at the fastest speed, and the market currently generally expects that wearable devices will grow faster than mobile phones and tablets, The future development prospect of wearable device market is still broad 。 According to CCS Insights, the overall shipments of wearable devices (smart watches, smart bracelets) around the world will continue to grow steadily, reaching 388 million by 2025.

IDC believes that mobile phone manufacturers will further grow rapidly in the wearable device market by virtue of mobile ecology, brands, channels and other resources. In the future, wearable device manufacturers will increase research and development, and develop diversified wearable products with clear product positioning and subdivided application fields to stimulate market demand growth.

Prospective Economist APP Information Group

For more research and analysis of this industry, please refer to the Analysis Report on Market Foresight and Investment Strategic Planning of China's Wearable Equipment Industry issued by the Prospective Industry Research Institute

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