An explosion of new products, a growing number of vendors and solid consumer adoption has stimulated recent growth in the global wearable device market. Now that the devices have gone mainstream, financial services organizations are working to determine how to fit them into their overall mobile banking and payments strategies.

According to the Framingham, Mass.-based International Data Corporation Worldwide Quarterly Wearable Device Tracker, wearable device shipments will reach 76.1 million units in 2015, up by 163.6% from the 28.9 million units shipped in 2014. By 2019, worldwide shipments will reach 173.4 million units, resulting in a five-year compound annual growth rate of 22.9%. Total shipments include both basic and smart wearables.

"Despite this rapid growth, it doesn't make sense for most banks and credit unions to immediately jump in and create dedicated wearable apps, due to the fact that the development of dedicated apps can require a significant investment of time and resources," Andrew Barnett, principal digital banking consultant for the Brookfield, Wis.-based core processor Fiserv, said. "A more practical choice for the majority of financial institutions is to extend the existing functionality and convenience of the mobile channel to wearables."