Equities.com Reports NXT-ID
(NASDAQ: $NXTD) to Expand Digital Payment Portfolio with Fit Pay Merger
March 29, 2017 – (Investorideas.com Newswire) - Next-generation
technology provider NXT-ID, Inc. announced this week that it entered into a
Letter of Intent with Fit Pay, Inc. to combine their businesses. The
transaction would enhance NXT-ID's existing product portfolio with Fit Pay's
"comprehensive payment and authentication platform", which is aligns
well considering NXT-ID's core technology and focus.
NXT-ID (NASDAQ:NXTD) already specializes in developing solutions for
identity verification, security and privacy, encryption and data protection,
payments, miniaturization and sensor technologies. Meanwhile, Fit Pay is a
technology platform that enables wearable and IoT device makers to process
digital payments. It has also integrated with the major credit card networks
and chip manufacturers to provide an all-in-one solution and flexible
integration options with developer-friendly tools and documentation.
In a recent interview with Equities.com, NXT-ID CEO
Gino Pereira provide insight into where the company sees itself as the next
cycle of innovation and new technologies, such as digital payments and IoT,
gain wider mainstream adoption.
"I think that all this growth and all of these
interconnected devices are going to require one critical thing for the whole
ecosystem to be successful, and that is essentially trust and security,"
Pereira said. "All of the innovation won't be helping anyone if you don't
trust that transactions being done through IoT are secure and your identity is
safe. Whether they be payments or simple things like access to your home and
your car, that's an essential part of the IoT ecosystem and that's the piece
that we feel we can play a big part in."
The deal with Fit Pay certainly enhances NXT-ID's
ability to become a key player in these areas with another market-ready
platform in its arsenal. According to the company, the deal includes stock and
cash consideration, and NXT-ID will not be raising additional capital to
complete the transaction.
"This potential transaction with Fit Pay would
not only add a critical component to our payment and authentication products,
but also a platform which will enable a whole new suite of offerings including
payments, credential management, and secure authentication services,"
Pereira said in the announcement. "Fit Pay's leadership team has over 50
years of experience in the payment space. The completion of this transaction
would provide an important addition to our business model, increasing our
opportunities with existing products and allowing us to rapidly expand in
digital payments and the Internet of Things (IoT), both of which are part of
our strategic plan."
NXT-ID is no stranger to the digital payments
space. The company developed the Wocket Smart Wallet as its initial product
offering, and has since, utilizing its underlying technology, expanded its
product portfolio to include the Flye Smart Card in a partnership with
WorldVentures, as well as an ultra-low power, miniaturized module for IoT devices.
Known as the "IoT Stamp", the chip is a result of a cooperative
effort with Nordic Semiconductor (NDCVF) and among its features, enables
payment technologies, including NFC and WiMag connectivity.
"Blending our payment and authentication
capabilities with NXT-ID's industry-leading technology products will
significantly accelerate our ability to capture market share," said
Michael Orlando, CEO of Fit Pay, stated in the announcement. "As consumers
interact with more and more devices, providing core secure services with the
confidence of knowing the user has been authenticated is critical. NTX-ID and
Fit Pay create a powerful combination that will do just that - offering
transformational products and services to the marketplace."
The deal with Fit Pay would be the latest
significant transaction NXT-ID has done in the past year to expand its
offerings. In July 2016, the company acquired LogicMark, LLC, which is a
leading provider of unmonitored personal emergency response devices (PERS).
In the March interview with Equities.com, Pereira
provided some telling insights on the direction and trajectory he'd like to
take NXT-ID going forward.
"We are definitely in expansion mode," he
said. "We are actively looking to increase our resources to allow us to
fully exploit all our opportunities. That's something that can take quite a bit
of time, but we are looking to do that. I feel confident that we will be
starting to exploit these new opportunities in the coming year. Certainly, the
payment space is something that we are heavily concentrated on as well as the
PERS space."
"We expect to expand our payment
applications," he told Equities.com. "We expect to have meaningful
relationships in the IoT space that result in revenue for the company. We
expect to grow our PERS business and we will begin to develop the DOD
enforcement business as resources allow throughout the course of the year.
We're trying to do it on an accelerated basis, but we certainly have to
concentrate on what we have in front of us right now. So, it's really a matter
of following our results of delivering on what we say we're going to do and
judging our performance on those metrics."
The recent announcement of the transaction with Fit
Pay certainly lines up well with what Pereira has laid out.
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Forward-Looking Statements for NXT-ID:
This press release contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements reflect management's
current expectations, as of the date of this press release, and involve certain
risks and uncertainties. Forward-looking statements include statements herein
with respect to the successful execution of the Company's business strategy.
The Company's actual results could differ materially from those anticipated in
these forward-looking statements as a result of various factors. Such risks and
uncertainties include, among other things, our ability to establish and
maintain the proprietary nature of our technology through the patent process,
as well as our ability to possibly license from others patents and patent
applications necessary to develop products; the availability of financing; the
Company's ability to implement its long range business plan for various
applications of its technology; the Company's ability to enter into agreements
with any necessary marketing and/or distribution partners; the impact of
competition, the obtaining and maintenance of any necessary regulatory
clearances applicable to applications of the Company's technology; and
management of growth and other risks and uncertainties that may be detailed
from time to time in the Company's reports filed with the Securities and
Exchange Commission.
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