So we know that Android Wear hasn't really been out for very long. Further more it hasn't even really been available to many consumers that weren't at the Google I/O conference in just the past couple of weeks that happened at the end of June, although some individuals have already received their Android Wear smartwatches on their doorsteps and are now happily enjoying the fruits of what they have to offer. For now, mostly everything is happy in the house of Android Wear, that is to say just about everything except the issue that has come up with paid app installations. Right now there aren't too many apps out that are compatible with Android Wear, and even fewer paid apps, but they are there and apparently are having trouble being installed on peoples Android Wear devices.
This seems like a surprising bug to miss but when you look at the big picture it isn't all that bad. As we stated above there are really only a handful of paid apps available for Android Wear, so there isn't much that users are being prevented from installing. On top of this, the bug had only been noticed in the past couple of days. Rest assured Google will be fixing the issue as soon as they can, and it may be possible that this bug could be squashed before most of the users who had ordered their Android Wear devices actually receive their orders, it all depends on how quickly Google can remedy the problem.
The bug stems from Android Wear basically not being able to recognize encrypted apk files, which is how all paid apps will be packaged. This inability to familiarize itself with the app installation file causes the Android Wear device to terminate the install process altogether and the app never makes it to your wrist. There are workarounds for the developers of course, which in turn would end up leading to a workaround for the users who want to download those apps to their Wear devices. In app purchases for example could allow the app to first be installed for free to a users phone, and then the automated install over Bluetooth to the Wear device would take place immediately after. Since the install to wear would be over with, users could then pay for the app inside through a one time fee. Not everyone will experience this bug, and hopefully it will be fixed fast enough that the number of effected users and developers stays low.