Transactions for up to €20 can be made with a tap.
CaixaBank has launched an NFC-enabled wristband through which users can make contactless payment across 300,000 payment terminals in Spain.
The waterproof wristband uses Gemalto’s Optelio Contactless MiniTag that contains encrypted details of the user’s existing payment card.
Users will be able to make payment for up to €20 by tapping the band to the merchants POS device. To make higher value transaction users will have to enter the PIN code.
Gemalto president for Europe Philippe Cambriel said: "The wearable devices market is booming, with around 70 million units projected to be sold in 2017.
"In line with this major global trend, CaixaBank’s new product launch re-enforces their pioneering spirit, well proven in providing innovative technologies such as contactless cards, mobile services and now wearable devices, so as to always offer their customers the payment method that best fits their needs."
The bank previously launched an app that allows customers to make financial transactions and view account details using Facebook.
CaixaBank has signed a 10-year agreement worth €500m with Fujitsu to build 8,500 ATMs with contactless capabilities.
In UK, Barclaycard is planning to launch bpay contactless wristbands in 2015.