Fitness-band maker Jawbone and American Express plan to allow cardholders to buy goods using a future fitness band equipped with NFC, according to a report.
Neither company would confirm the new product, said to be announced this week, according to the Wall Street Journal. The report said AmEx payments won't be possible with the coming Jawbone UP3, but will appear on a future product.
Apple Watch, which last Friday went on pre-order, will also support NFC payments. Apple recently said it has more than 700,000 U.S. stores supporting its technology. In addition to American Express, Apple Watch supports MasterCard and Visa.
The use of NFC in wrist-wearable devices for use with in-store payments is expected to grow. In January, a Fitbit representative at the International CES trade show said the company plans to remain open to including mobile payment capabilities in its fitness bands.
However, adding NFC could drive up costs for wearable devices while creating a sense of application bloat. One smartwatch maker, Guess Watch, a subsidiary of Timex, has not included NFC in its Guess Connect smartwatch, which is coming in the fall for about $350. "We don't think [payment capability] is what a fashion-focused consumer wants," said Rob Pomponio, senior vice president for creative services at Guess Watches in an interview at CES in January.
What will matter to consumers about mobile payments on a smartwatch or fitness band will be whether the device can be widely used in stores. While Apple Watch can presumably work in payment terminals at 700,000 stores, that is just a fraction of the 12 million payment terminals in the U.S.