Recent deals in the expanding Internet of Things (IoT) ecosystem may soon mean many wrist-bound activity trackers will become mobile wallets, and some credit unions plan to be at the forefront of the transition.

In August, Mastercard announced deals with Garmin and Fitbit to bring contactless payments capabilities to the companies' smartwatches, including a new Fitbit device expected to become available next month.

“Consumers today are expecting technology to help them accomplish life's daily tasks with as few steps or clicks as possible,” Mastercard senior vice president Kiki Del Valle said. “By adding payment capabilities to a Fitbit device, Mastercard cardholders who are already on-the-go can easily buy what they need without having to bring their wallet with them.”

CO-OP Financial Services has also jumped into the action, announcing earlier this month that it is supporting Tukwila, Washington-based Boeing Employees Credit Union and Mountain View, California-based First Tech Federal Credit Union in the rollouts. BECU has $17.2 billion in assets and about one million members. First Tech Federal Credit Union has $10.6 billion in assets and about 488,000 members.

“Wearable fitness trackers and smartwatches are popular with many different segments of today's digitally engaged consumer,” CO-OP President and CEO Todd Clark said in a statement. “And the market is ready for the next iteration of these devices, which are ultimately about making our lives easier. Consumers are eager to use their wearables in new ways, and secure, on-the-go payments are one of the most compelling, particularly for the young and active cardholder segment served by MasterCard, CO-OP and the credit unions we collectively support.”

Clark said the trend could help participating credit unions grow.

“Attracting digital consumers to credit union membership hinges on the movement's ability to hustle into a first-mover stance,” he said. “As consumers across the country unbox their shiny new wearables from FitBit, Garmin and other fan-favorite tech brands, credit unions need to be right there saying, 'Yes, we support that.'”

Instant Insights /

New Partnerships Grabbing Payments by the Wrist

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