Huawei and Yowpay Turn Smartwatches into Payment Terminals

A new collaboration between Huawei and Luxembourg-based fintech Yowpay is pushing the boundaries of how — and where — payments can happen.

The two companies have introduced what they describe as the first open banking-powered point-of-sale (POS) solution built directly into a smartwatch, effectively shrinking a payment terminal down to a wearable device.

Payments from the wrist

The concept is simple but significant: a Huawei smartwatch can now function as a merchant payment device. Instead of relying on card readers or external hardware, sellers can accept payments directly through their watch.

The process uses instant SEPA (Single Euro Payments Area) transfers. When a transaction is initiated, the watch generates a QR code on its display. A customer scans this using their phone, triggering a real-time account-to-account payment.

This approach removes the need for traditional card networks, which are often associated with higher processing costs and additional intermediaries.

A shift away from cards

At the core of the system is Yowpay’s infrastructure, which facilitates direct bank-to-bank payments. By bypassing card schemes, the model aims to streamline transactions and reduce fees for merchants.

More broadly, it reflects a growing shift within the payments industry toward open banking and “pay-by-bank” methods, where transactions move directly between accounts rather than through card rails.

Mobility and flexibility for merchants

The wearable format introduces a new level of portability. Small businesses, freelancers, and mobile vendors could theoretically accept payments anywhere without carrying dedicated hardware.

This could be particularly relevant in environments such as:

pop-up retail and markets
hospitality and events
on-the-go services (e.g. taxis, trades, or delivery)

The emphasis is on reducing friction — both operationally and financially.

Availability and rollout

The application is currently available through Huawei’s app ecosystem and supports selected devices, including models in the Watch GT and Watch Ultimate ranges.

Why this matters

While QR-based payments are already common in parts of Asia and increasingly present in Europe, embedding a payment terminal into a smartwatch represents a further step toward fully decentralised, device-native commerce.

If adopted at scale, this kind of technology could:

reduce reliance on legacy payment infrastructure
accelerate real-time payments adoption
lower barriers to entry for small merchants

Whether it becomes mainstream remains to be seen, but it signals a clear direction of travel: payments are becoming more embedded, more direct, and increasingly invisible.