Watch Journalist Yasuto Shibuya's Useful Watch Industry Chat
Baselworld for whom and what?
Will smartwatches become a breakthrough and become a wearable item for everyone? I've always thought that it would be impossible. For extremely busy people, they are convenient as a support device for their smartphones, but do they really need one? Checking and replying to emails and social media, making calls, searching the web, and using the map function on a smartphone's large screen is more convenient, so there's no reason to go out of your way to use a smartwatch with a small screen.
However, as 2018 comes to an end, I'm starting to think, "Maybe that time has finally come." I've started to feel this way especially this year. As early as the end of 2019, people who had no interest in smartwatches up until then may be wearing them on their wrists. The reason is that electronic money, especially QR code and barcode payments, have begun to spread explosively in Japan. And I believe that smartwatches will become the most convenient device for making these payments.
The Apple Watch already features an electronic money function called Apple Pay, which is linked to Mobile Suica and credit cards, and is gradually gaining popularity. Some people are enjoying its convenience in various places, such as convenience stores. Additionally, the fourth-generation smartwatches from various companies, including Fossil, which are equipped with Wear OS by Google, are also equipped with NFC functionality. While the launch date has not yet been announced, preparations are underway to support Google Pay, Google's electronic payment service, which can be used in the same way as Apple Pay.
Convenience stores have already started offering code payments using smartphone apps.
One particularly hot topic at the end of 2018 was PayPay, a joint venture between SoftBank and Yahoo!. A campaign launched on December 4, 2018, offered users the chance to receive 20% of their purchases (up to ¥50,000) in points back if they used PayPay until the end of March 2019, or until the rebate amount (rebate points) reached ¥10 billion. There was also the possibility of randomly receiving up to ¥100,000 for free. Signing up was easy, with a dedicated smartphone app. Simply link your bank account or credit card. The generous rebate amount has led to an increasing number of people signing up for the service, competing for the right to receive it. While some have criticized this campaign as a desperate attempt in a crowded market, its popularity skyrocketed thanks to television commercials and other efforts. The campaign was scheduled to run until the end of March 2019, but ended on December 13, 2018, just 10 days after the campaign began, when the rebate amount reached ¥10 billion.
In addition to this, TV commercials are frequently aired for "LINE Pay," which has a bill splitting function. When we talk to retail stores that have introduced it, we hear that the battle to persuade stores to adopt it is heating up. Companies are desperate to increase the number of people and places that can use it, as once it becomes established as a payment method, they will surely start to receive money.
If smartphone apps like PayPay and LINE Pay were to become available on smartwatches, it would be possible to make code payments using just your wrist. At the moment, there are no such code payment apps, but if such apps were available on smartwatches with touchscreen displays and payment codes could be displayed, there would be no need to take out your smartphone, and the convenience of these apps could potentially attract people who have not been interested in smartwatches until now.
A similar service using a smartwatch could also be implemented for point cards. From a consumer perspective, if the point card function could be made into a wristband, many people, both young and old, would want it just for that.
