Fitbit Acquires Coins Wearable Payment Assets Popular Smart Watches Could Double As Mobile Wallets

SAN FRANCISCO -- Fitbit users could soon make payments with a wave of their wrists. Fitbit Inc., biggest company in fitness tracking, said it has acquired the wearable payment technology assets from Silicon Valley startup Coin, which makes devices that use near-field communication. Terms of the transaction, which closed on May 12, were not disclosed.

The deal does not include Coin 2.0, a payment device that combines debit, credit and gift cards. Coin will reportedly discontinue that device. The deal does include key personnel and intellectual property specific to Coin's "wearables" payment platform, Fitbit said. While the company has no plans to integrate Coin's payments technology into its 2016 product roadmap, the acquisition accelerates Fitbit's ability to develop an active NFC payment solution that could be embedded into future devices, broadening its smart capabilities.

NFC is prominent in many mobile devices and is used in the Apple Watch, as well as such emerging mobile payment services as Apple Pay, Samsung Pay and Google Wallet. Fitbit is a dominant player in the wearables market, accounting for nearly a quarter of it, according to a recent International Data Corp. report. Apple's piece remains the most popular smartwatch, with an estimated 1.5 million devices shipped in the quarter, according to IDC.

"We are focused on making wearable devices that motivate people to reach their health and fitness goals, and that also make their lives easier with the smart features they need most," said Fitbit cofounder and chief executive James Park. "Coin has been one of the key innovators in advanced payment solutions. The inclusion of their payment technology into our offerings will further our strategy of making Fitbit products an indispensable part of people's lives."