​Why NXT-ID (NXTD) is a Need-to-Know Name in the IoT Space

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Continuing to make headlines with its diverse portfolio of digital payment methods, NXT-ID (NXTD) and the company's wholly-owned subsidiary, FitPay, Inc, just announced a new deal with Bank of America (BAC) that is sure to keep people talking. The exciting new agreement will extend contactless payment options to a range of devices, giving the bank's 34 million active users an assortment of payment capabilities.

Powered by FitPay's proprietary payment security technology, Bank of America customers will now be able to use their credit or debit cards to make secure contactless payments directly from devices that are incorporated with the FitPay™ payment platform at NFC-enabled point-of-sale locations and more than 9,000 Bank of America ATMs.

A Trusted Name in Digital Payment Sector

Obviously, this collaboration is a huge benefit for customers of the United States' second-largest bank.

"As digital payments evolve, our goal is to give Bank of America customers access to payment options that are easy to use and highly secure," said Mark Monaco, Head of Enterprise Payments at Bank of America. "Working with FitPay will allow our customers to use a range of new contactless payment devices to improve the payment experience, provide a high level of security, and fit seamlessly into any lifestyle."

Furthermore, this agreement with Bank of America proves that NXT-ID is quickly becoming a next-generation security and digital payments leader. Working with a front runner in the banking industry is a huge endorsement for NXT-ID and allows them to exhibit the true value of their product line.

"We are very pleased to be working with Bank of America to give their customers access to the latest payment technology," said Michael Orlando, COO of NXT-ID and President of FitPay in the company press release. "Broad adoption of digital payments requires fundamentally changing the payment experience and making new payments methods widely available. Our work with device manufacturers and Bank of America is driving both of these goals."

In addition, NXT-ID further increased the size of its umbrella when they announced that Fit Pay would also be enabling payment capabilities for leading wearables company Garmin International (GRMN) and their new vívoactive 3, a smart watch that has a contactless payment feature called Garmin Pay™. The vívoactive 3 is a smart watch for those with an active lifestyle and now NXT-ID through Fit Pay will give people who are avid runners or cyclists a chance to leave their wallet at home. Fit Pay will now allow customers to pay for goods with a simple tap.

As can be evidenced in this deal with Garmin, IoT and wearable device manufacturers will now easily be able to add payment and authentication technology to their products with very little start-up time, no investment in software development and access to the leading card networks.

These recent moves show NXT-ID is growing and becoming a go-to name for company's who are looking to assure customers that modern payments will work consistently and securely.

"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," CEO of NXT-ID Gino Pereira told Equities in March. "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.



Since NXT-ID finalized the acquisition of Fit Pay in May, the company has been building momentum and increasing its exposure in this rising industry with its unique multi-prong approach. As evidence of this, revenue for the first six months of 2017 was approximately $14.3 million compared to only $80,795 for the same period in previous year. Moreover, gross profit in the first half of 2016 climbed to $7.3 million, versus a gross loss of $(58,374) in the year prior period.

However, these milestones are just the beginning for a company that is starting to see the fruit of its hard work and strategic acquisitions.

How Logicmark and Token will also Boost NXT-ID's Future Growth

In Summer 2016, NXT-ID completed the purchase of LogicMark, a leading provider of unmonitored personal emergency response devices (PERS), and the company has been charting record sales since.

The move to acquire LogicMark was well thought out. PERS systems are set to grow to $8.4 million by 2020. Significantly, LogicMark is the country’s biggest manufacturer in the no-monthly-fee PERS space, according to LogicMark President Kevin O’Connor.

"Our intention is to take these product lines and roll them out into extended retail distribution. We have a distribution model that I feel is potentially a game changer in the space," Pereira told Equities during the same interview back in March. "Understand that in the PERS business, there are monitored and non-monitored PERS. LogicMark is a leader in the non-monitored space. Most larger companies, I think the vast majority of the industry, are in the monitored space where they charge an initial fee with a monthly payment after that. In this monitored model, the customer tends to have the device and services on average for about three years. So, it’s fairly expensive to have one of these devices over a period of time. Our model is to sell the products outright where calls are automatically routed to 911 if someone needs assistance. This way, there is no need for us to have a call center, which removes the need for monthly fees."

Besides this accretive deal for Logicmark, NXT-ID through FitPay has also entered the smart jewelry business by providing contactless payment capabilities to the innovative Token brand who has already sold out all of its pre-orders. The company's smart rings resemble normal rings but can do everything from start your car to track your heart rate. The highly encrypted ring uses an ultra-compact fingerprint sensor along with proprietary continuous two-factor authentication method to ensure only the proper user can access the protected credentials. And, most importantly, once the ring is slipped off, its technology is disabled. Of course, Token's creators wanted to add contactless payments into their smart rings and Fit Pay was their clear choice.

"Our vision is to offer a device that streamlines the process of authentication throughout the day, while simultaneously protecting users from identity fraud using advanced cryptography," said Token CEO Melanie Shapiro in the announcement of the partnership. "As we looked to add essential services to Token, contactless payment capabilities were a must-have and Fit Pay platform offered the best end-to-end solution for our users."

The wide scope of NXT-ID and its subsidiaries is starting to ring out. With deals that now tie in Bank of America and Garmin, the company is beginning to move toward an inflection point that is very exciting. NXT-ID's valuable technology is starting to touch multiple sectors and the company is truly becoming a need-to-know name in the IoT space.

For more information, visit http://www.nxt-id.com.


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Companies

Symbol Name Price Change % Volume
NXTD NXT-ID Inc. 1.35 -0.03 -2.46 508,090 Trade
BAC Bank of America Corporation 26.65 -0.01 -0.04 6,458,718 Trade

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