Contactless with your smartwatch – payment at the flick of a wrist

Did you perhaps find a smartwatch under the Christmas tree last year? Once you’ve played around with the fitness tracking and other cool functions, maybe you’re now thinking of using your new device to pay for items in shops – assuming your smartwatch supports this function. 

And maybe you’re wondering how it works and whether it’s safe? Find out here how to pay with a smartwatch safely and what you need to do to ensure the process is secure.

Making contactless payments

In order to use your smartwatch for payments, the device needs to have the NFC (near field communication) function. Most wearables – electronic devices that you wear on your person, such as smartwatches – come with this function as standard. NFC allows data to be transferred contactless to, among other things, card reader devices.

You also need a payment card – a credit or debit card, for example – saved in the digital wallet on your smartwatch. Setting up a virtual card isn’t difficult, you just need to follow the instructions in your banking app or in the digital wallet on your smartphone. The bank that issued your card must offer virtual cards which are compatible with your smartwatch’s operating system.

On the merchant side, the card terminal in the shop must be NFC compatible. These terminals have since become industry standard and contactless payments can now be made almost anywhere. The biggest advantage of this payment option: it’s fast and easy because you always have your smartwatch ‘at the ready’ on your wrist – no more rummaging around to find your card or smartphone.

How to pay with your smartwatch

Paying with your smartwatch is simple and intuitive:

1. Make sure you’re wearing your smartwatch and that it’s unlocked: In order for the payment function to work, you must be wearing your smartwatch on your wrist and it must be unlocked using your device’s passcode.
2. Activate payment function: Press the relevant buttons or open the wallet app on your smartwatch.
3. Hold your smartwatch on the terminal: Hold the display of your watch around 1cm from the card reader.
4. Wait for confirmation: Your smartwatch will beep or display a confirmation message when the payment has gone through.

Thanks to its speed, this method is particularly practical, especially when you’re out shopping or on holiday.

Why is paying with wearables safe?

Paying with a smartwatch is considered especially secure. Its key security feature is the virtual card’s tokenisation system. This means your real card data is never transferred to the merchant. Instead, the system generates a unique code for each transaction, which cannot be reused. Alternatively, the card data or the token can be stored in an especially secure physical area on your device, known as the secure element.

Also, the payment function only works when the smartwatch is being worn, is unlocked and NFC is activated. As long as no one knows the passcode, your device cannot be used by anyone else. If you were to lose your smartwatch, you can quickly block the payment function – either via your smartphone or by contacting the bank that issued your card. Or, in Germany, you can block registered cards via an emergency hotline +49 116 116.

If you have any questions about setting up this service, contact your bank or your smartwatch manufacturer’s customer service. They will help you get the most out of the payment function on your smartwatch.