Smart watches could be the future of mobile payments

As consumers increasingly prefer to use ACH cards and other forms of electronic payments, businesses and financial institutions alike could benefit from adopting these technologies.

While many believe smartphones and tablets will drive mobile payment system adoption, smart watches could have a bigger impact than people expect.

In fact, IMS Research projects the wearable technology market will exceed $6 billion by 2016.

"A $6 billion market in 2016 is our most conservative forecast which assumes that the adoption of wearable technology will be limited by factors including lack of suitable technology, poor user compliance and lack of an overall enhanced experience from devices that are wearable as compared to non-wearable products," said Theo Ahadome, senior analyst at IMS Research.

No matter what type of technology drives mobile payment systems, business owners would be wise to adopt them. Failing to do so could lead to these companies missing out on sales and falling behind the competition, with the market expected to surge in the near future.

Javelin predicts the total amount of mobile payments will increase to $5.4 billion by 2018, compared to $398 million in 2012.