March 29, 2017 (Investorideas.com Newswire) Next-generation technology provider NXT-ID, Inc. (NASDAQ:NXTD) 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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