Fitbit Inc (NYSE:FIT) has announced the launch of its payment processing app Fitbit Pay in the UK.
The wearable tech company announced the launch of Fitbit Pay in the UK on Tuesday as part of its plan to compete more effectively with rival companies such as Apple Inc. (NASDAQ:AAPL). The latter has its own payment service Apple Pay which currently works in 20 countries. The launch of Fitbit Pay in the UK also highlights Fitbit’s plan to make its wearable devices more appealing to the market by including convenient technologies such as health and fitness tracking and payments. Apple also does the same with its Apple Watch devices.
The launch of the Fitbit Pay service in the UK is a key step forward for the fitness wearable manufacturer but is currently limited to a fintech bank called Starling. It was also the first bank that jumped on board when Apple Pay and Android Pay from Alphabet Inc (NASDAQ:GOOGL) subsidiary Google made their way into the UK market. This is because the small fintech bank has adopted digital payments as part of its strategy to compete with the major banks.
“Starling Bank was founded to empower consumers to take control of their money and better manage it on the move, so Fitbit Pay is a perfect partner for us,” stated Anne Boden, the CEO of Starling Bank.
The launch of the service means Starling Bank customers in the UK will be able to use the Fitbit app to make payments. However, they will have to purchase the new Fitbit Ionic smartwatch which will cost roughly £300. The wearable tech company hopes that this will be an incentive for people to purchase the new smartwatch.
It is currently not clear whether other banks in the UK will jump on board with the Fitbit Pay service. However, it is most likely in the company’s interest that more banks will become interested so that it can get more customers to sign up. The same also happened to Apple when it started out, with only a few banks coming on board which suggests that banks are a bit hesitant especially because it is relatively new technology.
Fitbit stock closed the latest trading session on Tuesday at $6.06.