Fitbit is known widely for its fitness tracking options, but there are a lot of fitness trackers out there.
Thus, many companies are left looking for a way to differentiate in a market that’s increasingly packed.
Fitbit had a critical advantage in terms of perceived quality, and now, it’s got one more coming up in a new acquisition from Coin.
Fitbit purchased the wearable payments technology from Coin, but won’t start building it into its systems until some point in 2017.
Fitbit got a good chunk of Coin’s operations—intellectual property and both engineering and sales staff—but one point missing was the Coin mobile wallet.
Fitbit wasn’t talking about total sales price, but it was suggested it wasn’t considered “material” to the company, which pulled in nearly $2 billion last year alone.
Essentially, Fitbit plans to continue to focus on health features, particularly fitness tracking, but also plans to add some minor amenities like text notifications and, yes, mobile payments, a development that can give Fitbit that little extra edge in a market where some users haven’t yet decided on which fitness tracker to go with.
It’s not even particularly unique to this market, as Jawbone currently offers a fitness tracker with a near-field communications (NFC) chip for payments, tied into American Express for its backbone. Coin’s, meanwhile, uses similar NFC technology to make payments.
This seems like a good plan for Fitbit; while the year’s delay will buy it time to get a proper launch plan set up, it’s not as though its sales are hurting as they sit.
So it can carry on from a position of relative strength and launch when ready. That’s a good position to be in.
While it would seem that a little haste is called for so as not to lose ground to Jawbone, but it’s already lost some a bit, and it can likely stand a little delay.
It’d be better if it’s as early in 2017 as possible so as not to lose any more, but it’s got the room to do the job right.
Fitbit’s already a big name in fitness tracking, and this addition will likely only improve things. Go for a run and then buy a drink afterward, that’s a prospect that sounds worthwhile, and one that’s increasingly likely with mobile payments incorporated into wearable devices.