Swatch Modifies its Chinese Entry into Mobile Payment Watches

Swatch, in the United States, was one of the big brands of the nineties. Getting at least some boost from popular Fox series “Parker Lewis Can’t Lose,” Swatches had their day, and then faded out. Swatch, however, seemed to sense a shift in the wind and reinvented themselves as a piece of wearable technology, particularly in mobile payments. The end result was a new start for Swatch, and its recent move into China has brought with it a new upgrade.

The new Swatch lineup can now link with credit cards issued by 11 different banks, and can also connect to debit cards, a point that’s likely to win it some fans in China, where debt is culturally frowned upon. This isn’t the first time we’ve seen Swatch in China, as it’s been there since October 2015, but this latest push is a significantly stronger one for the brand.

Plus, as noted by Swatch Group Chief Executive Nick Hayek, the company’s new chip technology—that basically allowed for all those new credit and debit card connections—will provide not only greater protection for the data involved, but also an improved battery life.

While Swatch was having a tough time of it finding market share in China, Swatch has also set up some other changes that should help going forward. The biggest of these is a recent shift in the activation process, which is now simpler and should help draw more users into the fold.

Given that customers in China completed around $8.7 billion of mobile transactions in 2016—a number up nearly five times from just the previous year—there’s ever reason to put more effort into gaining ground in this market. While it’s not immediately clear just what kind of market share Swatch already has here, Swatch will likely be glad to see any payment traffic running through its coffers.

Swatch’s days as a fashion accessory may be behind them, for the most part, but it’s entirely possible a new country—and some significant new functionality—could help drive the company back in a positive direction. Only time will tell just how well this all comes out, but Swatch’s improved operations and growing regional partnerships might let it tap the Chinese market and take serious advantage of this new mobile payments sector.