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Nxt-ID, Inc. Announces Filing of Form 10 Registration Statement for Planned Spin-Off of its Payments Business

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SEBASTIAN, Florida, April 30, 2019 /PRNewswire/ — Nxt-ID, Inc. (NASDAQ: NXTD) today announced that a Form 10 Registration Statement was filed with the U.S. Securities and Exchange Commission in connection with the planned spin-off of its payments, authentication and credential management business (the “Payments Business”). The Form 10 Registration Statement is used to register a class of securities that are intended to be traded publicly and is subject to review and approval of the Securities and Exchange Commission.”This filing marks an important next step in the planned spin-off of our Fit Pay, Inc. (“Fit Pay”) subsidiary and our payments business,” said Chief Executive Officer Gino Pereira. “The spin-off will create two independent companies focused on delivering significant ongoing value to our shareholders within their respective markets.”

Nxt-ID (or the “Company”) previously announced that it intends to separate its payments, authentication and credential management business into an independent company and distribute those shares to Nxt-ID shareholders through the execution of a spin-off, which it believes will qualify as a tax-free distribution. Immediately following the transaction, Nxt-ID shareholders, who own shares of Nxt-ID on the spin-off Record Date, which has not yet been announced, will own shares of both companies. The new company, PartX, Inc. (“PartX”), will include the assets acquired in the May 2017 business combination with Fit Pay, Inc. as well as the payment, authentication and credential management assets the Nxt-ID developed previously.

“This spin-off will enable both companies to execute business plans that leverage their core strengths and to present clear, well-defined value proposition for our shareholders, partners and customers,” said Michael Orlando, COO of Nxt-ID, president of Fit Pay, Inc. and incoming Chief Executive Officer of PartX, Inc. “This more singular focus, along with a more concentrated and efficient use of resources, will fully empower both companies to maximize shareholder value.”

The Company believes the spin-off will provide a number of benefits, including: (1) enhanced strategic and management focus on the core business and growth of each company; (2) more efficient capital allocation, direct access to capital and expanded growth opportunities for each company; (3) improved investor understanding of the business strategy and operating results of each company; and (4) enhanced investor choice by offering investment opportunities in separate entities.

PartX, Inc.

The new company, PartX, will include the payment, authentication and credential management assets of Nxt-ID and Fit Pay, Inc, including Fit Pay’s Token Requester Platform, which enables cardholders to securely add their payment credentials to devices that are integrated with Fit Pay’s token management solution. The Platform allows device manufacturers, merchants, banks and any other entities making digital transactions to offer their customers a safe and convenient payment experience. FitPay is one of the first successfully commercialized token requestor service providers to be integrated with the major payment card networks.

PartX’s core capabilities also include the development of payment and authentication devices that leverage NFC (near field communication), cryptocurrency, and blockchain technology. It is currently developing secure, connected devices that are focused on digital payments and loyalty programs, which will be distributed through partnerships and offered direct to consumers. The assets of the new company will include a portfolio of payment, authentication and blockchain technology patents that have been filed by or issued to Nxt-ID and Fit Pay.

Nxt-ID and LogicMark

Assets associated with Nxt-ID’s healthcare subsidiary, LogicMark, LLC, will remain with the Company along with the assets under 3D-ID, LLC. LogicMark produces a range of products within the personal emergency response system (PERS) market. The Company has differentiated itself by offering non-monitored products, which only require a one-time purchase price, instead of a recurring monthly contract, offering a significant value proposition over monitored solutions.

Transaction Details

The registration statement may be accessed at www.sec.gov under the name PartX, Inc., the new corporate name for the parent company of the Payments Business. The registration statement provides information regarding the business, strategy, and historical financial results of PartX, as well as further details on the anticipated terms of separation and distribution and tax matters agreements between Nxt-ID and PartX in connection with the planned spin-off. PartX expects to update its registration statement in subsequent amendments as additional information is finalized prior to the spin-off.

The spin-off of this business is subject to final approval by the Nxt-ID Board of Directors, execution of transition services and assignment agreements, arrangement of financing facilities, the effectiveness of the registration statement, and other customary conditions. The separation will not require a shareholder vote and is expected to be completed in the second quarter of 2019. PaxtX has applied to list on the OTCQB of the OTC Markets Group Inc. Following the spin-off, Nxt-ID will continue to trade on the Nasdaq Capital Market under the symbol “NXTD.”

About Nxt-ID, Inc.

Nxt-ID, Inc. (NASDAQ: NXTD) provides a comprehensive platform of technology products and services that enable the Internet of Things (IoT). With extensive experience in access control, biometric and behavior-metric identity verification, security and privacy, encryption and data protection, payments, miniaturization and sensor technologies, Nxt-ID develops and markets groundbreaking solutions for payment and IoT applications. Its industry-leading technology products and solutions include MobileBio®, a suite of biometric solutions that secure consumers’ mobile platforms, the Wocket™, a next-generation smart wallet and the Flye, a digital credit card developed in collaboration with WorldVentures.

Nxt-ID includes three mobile and IoT-related subsidiaries: LogicMark, LLC, a manufacturer and distributor of non-monitored and monitored personal emergency response systems (“PERS”) sold through dealers/distributors and the United States Department of Veterans Affairs; Fit Pay, Inc., a proprietary technology platform that delivers end-to-end solutions to device manufacturers for contactless payment capabilities, credential management, authentication and other secure services within the IoT ecosystem, and 3D-ID LLC, which is engaged in biometric identification and authentication. Learn more about Nxt-ID at www.nxt-id.com. Fit Pay and the Fit Pay Payment Platform are the sole property of Fit Pay, Inc. For Nxt-ID Inc. corporate information contact: info@nxt-id.com

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.

There are a number of important factors that could cause the Company’s actual results to differ materially from those indicated by such forward-looking statements, including whether the planned spin-off of the payments business is completed, as expected or at all, and the timing of any such spin-off; whether the conditions to the spin-off can be satisfied; whether the operational, marketing and strategic benefits of the spin-off can be achieved; whether the costs and expenses of the spin-off can be controlled within expectations; and general market and economic conditions. The foregoing sets forth many, but not all, of the factors that could cause actual results to differ from our expectations in any forward-looking statement. Investors should consider this cautionary statement, as well as the risk factors identified in our periodic reports filed with the SEC, when evaluating our forward-looking statements.

Media Contacts:

Chris Orlando
chris.orlando@nxt-id.com
+1-760-468-7273

 

D. Van Zant
+1-800-665-0411
press@nxt-id.com

Discover Logo

DISCOVER CARDMEMBERS CAN NOW MAKE PAYMENTS ON THE MOVE WITH GARMIN PAY

Riverwoods, IL, and Olathe, KS, January 28, 2019 – Discover®and Garmin®International, Inc., today announced that Discover cardmembers can now make payments using Garmin PayTM, a contactless payment solution for people on the move. Garmin Pay, which is powered by FitPay®, is available on Garmin’s latest active lifestyle smartwatches, the vívoactive®3 series, and new GPS running watches, the Forerunner®645, Forerunner 645 Music and fēnix®5 Plus series, as well as the D2™ Delta aviator watch series. Those who add their Discover card to Garmin’s virtual wallet can make quick and easy purchases using just their watch.

“Consumers are constantly on the go and our goal is to make it as simple and seamless as possible for our cardmembers to pay with their Discover card, including on IoT and wearable devices,” said Shaida Lynch, vice president of e-business at Discover. “Now someone can be out on a jog or running errands and the ability to pay with Discover from their Garmin watch is just a quick tap away.”

“We are excited to provide our customers and Discover cardmembers with another way to pay while they are on the go,” said Dan Bartel, Garmin vice president of global consumer sales. “Having the ability to easily pay for purchases, without the need for a phone or wallet, is a feature that we are happy to bring to users who live an active lifestyle.”

Discover cardmembers can use Garmin Pay at any merchant retail location that accepts both Discover and contactless Near Field Communication (NFC) transactions. Once a payment card is added to Garmin’s virtual wallet—which can be done through the Garmin Connect™ Mobile App—users can tap and pay with just a few quick touches.

“We are very pleased to have partnered with Discover and Garmin to bring additional payment capabilities to Discover cardholders,” said Michael Orlando, chief operating officer of NXT-ID and president of Fit Pay, Inc. “Discover cardholders will now be able to experience a truly frictionless payment experience through Garmin’s amazing line-up of smartwatches.”

Discover cardmembers who use Garmin Pay to make purchases will continue to receive all the convenience and benefits of their Discover card, including rewards, fraud protection and U.S.-based customer service.

For more information, go to www.discover.com/credit-cards/digital-wallets/more-walletsand www.garmin.com/garminpay.

About Discover

Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover card, America’s cash rewards pioneer, and offers private student loans, personal loans, home equity loans, checking and savings accounts and certificates of deposit through its direct banking business. It operates the Discover Global Network comprised of Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation’s leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in 190 countries and territories. For more information, visit www.discover.com/company.

About Garmin International, Inc.

The ever-expanding Garmin fitness segment develops technologies to enhance and promote healthy and active lifestyles. Whether users are runners, cyclists, swimmers, multi-sport athletes, or simply looking to stay active throughout the day, there is a Garmin product that can help them reach their health and fitness goals.  For decades, Garmin has pioneered new GPS navigation and wireless devices and applications that are designedfor people who live an active lifestyle. Garmin serves five primary business units, including automotive, aviation, fitness, marine, and outdoor recreation. For more information, visit Garmin’s virtual pressroom at garmin.com/newsroom, contact the Media Relations department at 913-397-8200, or follow us at facebook.com/garmin,twitter.com/garmin, or youtube.com/garmin.

Garmin International, Inc., is a subsidiary of Garmin Ltd. (Nasdaq: GRMN). Garmin Ltd. is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan, and the United Kingdom. Garmin, vívoactive, Forerunner and fēnix are registered trademarks and Garmin Pay, D2 and Garmin Connect are trademarks of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.

About NXT- ID, Inc., and Fit Pay, Inc.

Fit Pay, Inc. is a wholly owned subsidiary of NXT-ID, Inc.(NASDAQ: NXTD), which provides a comprehensive platform of technology products and services that enable the Internet of Things (IoT). With extensive experience in access control, biometric and behavior-metric identity verification, security and privacy, encryption and data protection, payments, miniaturization and sensor technologies, NXT-ID develops and markets groundbreaking solutions for payment and IoT applications. Its industry-leading technology products and solutions include MobileBio®, a suite of biometric solutions that secure consumers’ mobile platforms,the Wocket™,a next-generation smart wallet and the Flye, a digital credit card developed in collaboration with WorldVentures. NXT-ID includes three mobile and IoT-related subsidiaries: LogicMark, LLC, a manufacturer and distributor of non-monitored and monitored personal emergency response systems (“PERS”) sold through dealers/distributors and the United States Department of Veterans Affairs; FitPay, Inc.,a proprietary technology platform that delivers end-to-end solutions to device manufacturers for contactless payment capabilities, credential management, authentication and other secure services within the IoT ecosystem, and 3D-ID LLC, which is engaged in biometric identification and authentication. Learn more about NXT-ID at www.nxt-id.com.NXT-ID Inc. Corporate Contact: info@nxt-id.com. FitPay® is a registered trademark of Fit Pay, Inc.

 

Media Contacts

Derek Cuculich

Discover Financial Services

224-405-0665

derekcuculich@discover.com

Follow us: @Discover_News

 

Stephanie Schultz
Garmin International, Inc.
913-397-8200
media.relations@garmin.com

 

Chris Orlando

Fit Pay, Inc.

760-468-7273

chris@fit-pay.com

 

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NXT-ID Subsidiary Fit Pay to Co-sponsor Jack Daniel’s® All-Star Weekend Event Hosted by Jamie Foxx

“Blame it on the Game” VIP event to raise the profile of contactless payments

MELBOURNE, Florida, February 15 – Fit Pay, Inc., a wholly owned subsidiary of NXT-ID, Inc. (NASDAQ: NXTD), today announced that it is co-sponsoring the Jack Daniel’s “Blame it on the Game” VIP Party hosted by Jamie Foxx in conjunction with All-Star Weekend, February 16 – 18, 2018.  The co-sponsorship is intended to raise the profile of contactless payments within the sports and entertainment industries. A select number of guests including professional athletes, celebrities and industry executives will receive a Garmin® vívoactive 3® smartwatch customized with a Jack Daniel’s watch face and loaded with Garmin PayTM contactless payment feature powered by FitPay.

“We are extremely excited that Fit Pay, Inc., has partnered with Jack Daniel’s to co-sponsor this amazing event during the 2018 All-Star Weekend in Los Angeles, CA,” states Eric Gudger, Portfolio Brand Manager for Brown Forman (NYSE: BFA, BFB). “Jack Daniel’s has always been on the forefront of new ideas through its various brands, and the co-branding on the Garmin vívoactive 3 timepiece is a great way for us to continue our commitment to enhance our brand with loyal consumers and tastemakers.”

The “Blame it on the Game” VIP Party hosted by Jamie Foxx is presented by Jack Daniel’s. The invitation-only event will take place in Los Angeles, CA. In January, Jack Daniel’s and the National Basketball Association (NBA) announced a new multiyear partnership making Jack Daniel’s an official marketing partner of the NBA, the Women’s National Basketball Association (WNBA), the NBA Development League (D-League), and USA Basketball. The sponsorship includes a variety of Jack Daniel’s hosted events, media and hospitality programs throughout the NBA, WNBA, NBA D-League and USA Basketball. The “Blame it on the Game” VIP Party will take place in conjunction with All-Star Weekend.

“Teaming with a lifestyle brand like Jack Daniel’s really emphasizes our belief that consumers should have the freedom to pay for things in a way that fits the way they live,” said Michael Orlando, president of Fit Pay, Inc. and COO of NXT-ID.  “The Jack Daniel’s moto ‘Live Freely’ closely ties to how we think about payments – free from your wallet, free from your phone.”

The FitPay Payment PlatformTM provides Garmin Pay and the vívoactive 3 with contactless payment capabilities and full digital wallet functionality within the Garmin ConnectTM app, enabling consumers to simply tap and pay with the smartwatch at NFC-enabled POS terminals using an existing credit or debit card account. FitPay’s proprietary technology platform uses tokenization, a payment security technology that replaces cardholders’ account information with a unique digital identifier (a “token”), to transact highly secure contactless payment and authentication services. This frees devices from needing to be tethered to a host device or connected to the Internet to transact payments, creating a convenient and completely frictionless payment experience. Manufacturers of 15 IoT and wearable devices are currently integrating with the FitPay Payment Platform.

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About Jack Daniel’s

Officially registered by the U.S. Government in 1866 and based in Lynchburg, Tenn., the Jack Daniel Distillery, Lem Motlow, proprietor, is the first registered distillery in the United States and is on the National Register of Historic Places. Jack Daniel’s is the maker of the world-famous Jack Daniel’s Old No. 7 Tennessee Whiskey, Gentleman Jack Rare Tennessee Whiskey, Jack Daniel’s Single Barrel Tennessee Whiskey, Jack Daniel’s Tennessee Honey, Jack Daniel’s Tennessee Fire, Jack Daniel’s Sinatra Select and Jack Daniel’s Country Cocktails. Today, Jack Daniel’s is a true global icon found in more than 170 countries around the world and is the most valuable spirits brand in the world as recognized by Interbrand. 

About Garmin International, Inc.

Garmin International, Inc., is a subsidiary of Garmin Ltd. (Nasdaq: GRMN). Garmin Ltd. is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan, and the United Kingdom. Garmin and vívoactive are registered trademarks, and Garmin Pay and Garmin Connect are trademarks of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.

About NXT- ID, Inc. and Fit Pay, Inc.

NXT-ID, Inc. (NASDAQ: NXTD) provides a comprehensive platform of technology products and services that enable the Internet of Things (IoT). With extensive experience in access control, biometric and behavior-metric identity verification, security and privacy, encryption and data protection, payments, miniaturization and sensor technologies, NXT-ID develops and markets groundbreaking solutions for payment and IoT applications. Its industry-leading technology products and solutions include MobileBio®, a suite of biometric solutions that secure consumers’ mobile platforms, the Wocket™, a next-generation smart wallet and the Flye, a digital credit card developed in collaboration with WorldVentures.

NXT-ID includes three mobile and IoT-related subsidiaries: LogicMark, LLC, a manufacturer and distributor of non-monitored and monitored personal emergency response systems (“PERS”) sold through dealers/distributors and the United States Department of Veterans Affairs; Fit Pay, Inc., a proprietary technology platform that delivers end-to-end solutions to device manufacturers for contactless payment capabilities, credential management, authentication and other secure services within the IoT ecosystem, and 3D-ID LLC, which is engaged in biometric identification and authentication. Learn more about NXT-ID at www.nxt-id.com. FitPay and the FitPay Payment Platform are the sole property of Fit Pay, Inc. For NXT-ID Inc. corporate information contact: info@nxt-id.com

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.

 

Media Contacts:

Fit Pay, Inc. and NXT-ID

Chris Orlando

chris@fit-pay.com

+1-760-468-7273

 

D. Van Zant

+1-800-665-0411

press@nxt-id.com

Flip Logo

NXT-ID Subsidiary Fit Pay Announces Flip – a Contactless Payment Device for Cryptocurrencies

Contactless payment instrument to be funded with value exchanged from cryptocurrency

MELBOURNE, Florida, February 8, 2018 – Fit Pay, Inc., a wholly owned subsidiary of NXT-ID, Inc. (NASDAQ: NXTD), today announced FlipTM, a new contactless payment device that will enable cryptocurrency holders to use the value of their currency to make purchases at millions of retail locations. The launch of the new device follows a December 2017 announcement by Fit Pay that it is expanding its platform to connect cryptocurrencies to the payment ecosystem. Leveraging the FitPay Payment PlatformTM, Flip will use value exchanged from cryptocurrency to make traditional payment transactions. The FitPay will begin taking pre-orders for Flip in February 2018 on a date to be announced.

“Flip is a very convenient way to use cryptocurrency value to make retail transactions,” said Michael Orlando, COO of NXT-ID and President of Fit Pay, Inc. “Not only does it seamlessly exchange cryptocurrency into dollars, it’s contactless, giving users a simple tap-to-pay experience.”

Flip will be near field communication-enabled (NFC) allowing it to transact payments at any retail point of sale location that accepts contactless payments. Flip will store a preloaded amount of U.S. dollars that are exchanged from the user’s existing cryptocurrency account. It includes a digital wallet that allows the user to set how much value they would like their Flip to hold and when they would like it to reload.  Initially, Flip will accept value exchanged from Bitcoin and will potentially expand to other cryptocurrencies in the future.

“When we announced that we were extending the FitPay Platform to cryptocurrencies, our goal was leverage our existing technology to connect cryptocurrencies to the payment ecosystem,” said Orlando. “That’s exactly what Flip achieves. And it continues to expand our offerings, furthering our mission to fundamentally change the way people pay.”

Consumers interested in Flip can add their email address to the Flip interest list at FliptoPay.com. Pre-orders for Flip on FliptoPay.com will begin in February 2018 on a date to be announced, with initial deliveries expected in the second quarter of 2018. Flip is currently only available in the United States. For more information, visit FliptoPay.com.

FitPay and Cascade Financial Technology Corp (Cascade FinTech) recently announced an agreement for the joint development of the platform that will be used to enable Flip, giving cryptocurrency holders the ability to use the value exchanged from cryptocurrency to be used for traditional payment transactions. The agreement is an expansion of an existing relationship between the two companies to provide prepaid capabilities on wearable and Internet of Things (IoT) devices connected to the FitPay Payment Platform. The prepaid, or GPR, option gives consumers with FitPay’s contactless payment-enabled devices the convenience of storing funds directly on their device. Under the previous agreement, the FitPay Platform connects to the Cascade CloudTM to enable contactless payment GPR devices in a variety of form factors.

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NXT- ID, Inc. and Fit Pay, Inc.

NXT-ID, Inc. (NASDAQ: NXTD) provides a comprehensive platform of technology products and services that enable the Internet of Things (IoT). With extensive experience in access control, biometric and behavior-metric identity verification, security and privacy, encryption and data protection, payments, miniaturization and sensor technologies, NXT-ID develops and markets groundbreaking solutions for payment and IoT applications. Its industry-leading technology products and solutions include MobileBio®, a suite of biometric solutions that secure consumers’ mobile platforms, the Wocket™, a next-generation smart wallet and the Flye, a digital credit card developed in collaboration with WorldVentures. NXT-ID includes three mobile and IoT-related subsidiaries: LogicMark, LLC, a manufacturer and distributor of non-monitored and monitored personal emergency response systems (“PERS”) sold through dealers/distributors and the United States Department of Veterans Affairs; Fit Pay, Inc., a proprietary technology platform that delivers end-to-end solutions to device manufacturers for contactless payment capabilities, credential management, authentication and other secure services within the IoT ecosystem, and 3D-ID LLC, which is engaged in biometric identification and authentication. Learn more about NXT-ID at www.nxt-id.com. NXT-ID Inc. Corporate Contact: info@nxt-id.com. FitPay and the FitPay Payment Platform are trademarks of Fit Pay, Inc.

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.

 

Media Contacts:

Chris Orlando

chris@fit-pay.com

1.760.468.7273

 

D. Van Zant

press@nxt-id.com

1.800.665.0411

GPLogo_stacked

Garmin® and NXT-ID Subsidiary FitPay Announce Garmin Pay Now Live on Garmin vívoactive® 3 Smartwatch

Contactless Payment Capability Supported by Major Card Issuers 

MELBOURNE, Florida, November 17, 2017 – Garmin International, Inc. (NASDAQ: GRMN) and Fit Pay, Inc., a wholly owned subsidiary of NXT-ID, Inc. (NASDAQ: NXTD), today announce that the Garmin PayTM contactless payment feature is now live on Garmin’s vívoactive 3 smartwatch and available to cardholders of issuing banks supporting the new service. The new feature on Garmin’s latest smartwatch enables consumers to make highly secure contactless payments at near-field communication-enabled (NFC) point-of-sale (POS) retail locations, adding a powerful new capability to one of the most complete smartwatches on the market for the active consumer.

“With Garmin Pay, vívoactive 3 wearers now have the freedom to leave their phone and wallet at home when they go to run or work out, and still be able to make purchases wherever their day takes them,” said Dan Bartel, Garmin vice president of worldwide sales. “The vívoactive 3 is an indispensable tool for any active lifestyle and we appreciate the support that card issuing banks have provided to make this exciting new feature available to their cardholders.”

Garmin Pay is available on the vívoactive 3, which was announced by Garmin at the IFA Consumer Electronic Unlimited show in Berlin, Germany on August 31, 2017. The new contactless payment capability is powered by the FitPayTM payment platform and available initially for Mastercard cardholders from numerous issuing banks and credit unions including BECU, Capital One, First Tech Federal Credit Union, and U.S. Bank in the United States, and internationally through Commonwealth Bank of Australia, Cornèrcard, Sberbank of Russia, and Swiss Bankers Prepaid Services Ltd.  This includes the initial launch day participants. Additional networks and issuers will be added soon. View supported country, payment network and issuing bank information at Garmin.com/garminpay/banks.

“We are excited that Mastercard cardholders will be the first consumers to make contactless payments using their Garmin vívoactive 3 smartwatches,” said Kiki Del Valle, senior vice president, Commerce for Every Device. “Working with leading issuers across four markets is just the beginning of delivering more choice in how consumers can make payments that match their digital lifestyles.”

“Bringing a powerful feature like Garmin Pay to market requires building an entire ecosystem to enable it,” said Michael Orlando, president of Fit Pay, Inc. and COO of NXT-ID. “By supporting the launch of Garmin Pay and the FitPay platform, Mastercard and its participating issuing banks have shown a real commitment to making payments more convenient for consumers and to reducing friction in the payment process.”

The FitPay platform provides Garmin Pay and the vívoactive 3 with contactless payment capabilities and full digital wallet functionality within the Garmin Connect app, enabling consumers to simply tap and pay with the smartwatch at NFC-enabled POS terminals using an existing credit or debit card account. FitPay’s proprietary technology platform uses tokenization, a payment security technology that replaces cardholders’ account information with a unique digital identifier (a “token”), to transact highly secure contactless payment and authentication services. FitPay leverages Embedded Secure Element (eSE) chip technology within devices to offer a payment solution that is very power and memory efficient and does not need to refresh a token once it is issued. This frees devices from needing to be tethered to a host device or connected to the Internet to transact payments, creating a convenient and completely frictionless payment experience.

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About Garmin International Inc.

The ever-expanding Garmin fitness segment develops technologies to enhance and promote healthy and active lifestyles. Whether users are runners, cyclists, swimmers, multi-sport athletes, or simply looking to stay active throughout the day, there is a Garmin product that can help them reach their health and fitness goals.  For decades, Garmin has pioneered new GPS navigation and wireless devices and applications that are designed for people who live an active lifestyle. Garmin serves five primary business units, including automotive, aviation, fitness, marine, and outdoor recreation. For more information, visit Garmin’s virtual pressroom at garmin.com/newsroom, contact the Media Relations department at 913-397-8200, or follow us at facebook.com/garmin, twitter.com/garmin, or youtube.com/garmin.

Garmin International, Inc., is a subsidiary of Garmin Ltd. (Nasdaq: GRMN). Garmin Ltd. is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan, and the United Kingdom. Garmin and vívoactive are registered trademarks and Garmin Pay is a trademark of Garmin Ltd. or its subsidiaries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.

Notice on Forward-Looking Statements for Garmin:

This release includes forward-looking statements regarding Garmin Ltd. and its business. Such statements are based on management’s current expectations.  The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors listed in the Annual Report on Form 10-K for the year ended December 31, 2016, filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983).  A copy of such Form 10-K is available at http://www.garmin.com/aboutGarmin/invRelations/finReports.html.  No forward-looking statement can be guaranteed.  Forward-looking statements speak only as of the date on which they are made and Garmin undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

 

About NXT- ID, Inc. and Fit Pay, Inc.

NXT-ID, Inc. (NASDAQ: NXTD) provides a comprehensive platform of technology products and services that enable the Internet of Things (IoT). With extensive experience in access control, biometric and behavior-metric identity verification, security and privacy, encryption and data protection, payments, miniaturization and sensor technologies, NXT-ID develops and markets groundbreaking solutions for payment and IoT applications. Its industry-leading technology products and solutions include MobileBio®, a suite of biometric solutions that secure consumers’ mobile platforms, the Wocket™, a next-generation smart wallet and the Flye, a digital credit card developed in collaboration with WorldVentures.

NXT-ID includes three mobile and IoT-related subsidiaries: LogicMark, LLC, a manufacturer and distributor of non-monitored and monitored personal emergency response systems (“PERS”) sold through dealers/distributors and the United States Department of Veterans Affairs; Fit Pay, Inc., a proprietary technology platform that delivers end-to-end solutions to device manufacturers for contactless payment capabilities, credential management, authentication and other secure services within the IoT ecosystem, and 3D-ID LLC, which is engaged in biometric identification and authentication. Learn more about NXT-ID at www.nxt-id.com. FitPay and the FitPay Payment Platform are the sole property of Fit Pay, Inc. For NXT-ID Inc. corporate information contact: info@nxt-id.com

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.

 

Media Contacts:

 

Garmin International Inc.

 Mary Thompson Woodbury

+1-913-397-8200

media.relations@garmin.com

 

Fit Pay, Inc. and NXT-ID

Chris Orlando

chris@fit-pay.com

+1-760-468-7273

 

D. Van Zant

+1-800-665-0411

 

Wareable

FitPay Comments on Apple’s Smart Strap Strategy

FitPay, was featured in the well-known tech news source, Wareable.com, June 6th in a story about Apple’s smart strap strategy:

“The twin challenges in the wearables market are utility and personalization – making devices more useful for consumers and personalizing them to fit seamlessly into any lifestyle,” says Michael Orlando, CEO of FitPay, which is currently in the process of onboarding the first devices onto its platform. “The modular nature of smart straps is one way to achieve both.”

Full article:

https://www.wareable.com/apple/apple-watch-smart-straps-core-bluetooth-8887

NIlson

Turnkey Payment Service for Wearable Devices

The Nilson Report, March 16, 2017

G&D Mobile Security, FitPay, and STMicroelectronics (STM) can offer financial institutions and manufacturers worldwide a turnkey service for deploying smart wearable payment devices including watches, event bands, rings, and key fobs. This is the first end-to-end service to come to market since Visa and Mastercard finalized payment certification criteria for wearables last year.

Read more

 

wearables for kids

When it comes to wearables, maybe we should be thinking small…

By Michael Orlando, CEO, Fit Pay, Inc.

In December of 2015, the American Academy of Pediatrics did a study on device usage in kids and found that 75 percent of the kids surveyed had their own smartphones and 96.6 percent had used a smartphone or similar device. The kids they surveyed were 4 years old and younger. That may skew young, but Influence Central did another study and found that the average age that kids get their smartphones is 10.

So, in a nutshell, young kids own and use devices. This age group, however, is an untapped market for wearable devices.

Google “wearable devices for kids” and nearly every search result is for GPS trackers for parents. It doesn’t make sense that this is the primary product offering when you consider the size of the market. The NPD Group puts the U.S. “youth electronics” market at almost $750 million for 2015 (and they’re really talking about electronic toys). Combine that with devices and the market opportunity is staggering.

I think the scale of this opportunity will push the wearables industry toward creating products explicitly for kids. And there are two existing products that show how wearable devices for kids have a wide range of potential use cases: Disney’s Magic Band and Pizza Hut’s NFC Tattoos.

I have a friend who’s getting ready to take her two kids on a Disney cruise. The thing she keeps talking about? The Magic Band. “Because they put it on and go, but I know where they are and what they’re doing.” The Magic Band is a bracelet that allows kids to access their room, use their Fast Pass, charge items to their account, etc. Essentially, it’s a wearable equipped with payments, ticketing and entry. But it only works at Disney.

It’s just a matter of time until someone creates a similar wearable that gives parents and kids that freedom and convenience in everyday life. It’ll have pre-paid or reloadable payments, transit access, school IDs, lunch money, whatever, and kids will like it because it gives them autonomy…and money. Parents will like it because it’s hard to lose and easy to monitor (and you could even throw in the GPS).

My other favorite kid item isn’t even a kid item. It was a marketing gimmick, but I think it has a lot of potential. Last October, Pizza Hut UK created a temporary tattoo that could order the wearer’s pizza of choice and deliver it to their (preprogrammed) location. The tattoos were equipped with NFC and QR technology and worked with the user’s smartphone. It wasn’t the sleekest system in the world (because what if you’re not in the mood for pepperoni?) but it was pretty clever.

Imagine your 10-year-old was going to Chuck E. Cheese and you could buy a temporary tattoo worth 30 tokens. I can also envision a pack of tattoos worth small dollar amounts sold with the gift cards in the grocery store. It’s an idea that seems ripe for expansion.

We, as an industry, are not yet creating and marketing wearable products designed specifically for kids. But I think it’s coming…soon.

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Mobile Payment Security: Perception vs. Reality

By Michael Orlando, CEO, Fit Pay, Inc.

Less than a year ago, ISACA (Information Systems Audit and Control Association) released the results of their 2015 Mobile Payment Security Study. This study surveyed roughly 900 “cybersecurity experts” and asked them about mobile payment security. Seventy seven percent of the respondents were either unsure or thought mobile payments were not secure, and 87 percent said that they expected to see an increase in mobile payment data breaches in 2016.

Last month, ISACA released another report countering that very finding and describing mobile payment security measures like tokenization and two-factor authentication as the safest option in payments.

The first report prompted a flurry of articles about how mobile payments were slow to catch on because of these security concerns. The second report has not generated nearly as much attention. I hope that will change and perceptions about mobile payment security will more closely match the reality, which is that contactless mobile payments are much more secure than traditional magnetic stripe transactions.

It’s worth noting that ISACA didn’t release a study of actual mobile payment security, nor did they claim to. They conducted a survey of people’s feelings about mobile payment security. So, in reality, these are perceptions—from cyber security experts. And if the experts feel that way, you can bet consumers and merchants do as well.

So, if we are to gain broad acceptance of mobile payments, as an industry we need to work hard to continually change perceptions and educate consumers about how mobile payment providers keep their data safe.

The truth is mobile payments, especially contactless mobile payments, are among the safest forms of payment currently available.

The vulnerability of magnetic stripe transactions is well documented. What makes this technology, which is by far the most-widely used, susceptible to a breach is that the stored data, the actual card number and expiration date, is static and shared at the point of sale, exposing it to malware in the local machine.

EMV chip cards, affectionately known as chip-and-pin, have significantly improved this security situation. EMV cards use encryption to protect data, and require either a PIN or signature. Using this two-factor authentication is much safer than swiping a magnetic stripe. However, if you’re swiping your chip-and-pin card – as many retailers still have customers do – you have just negated these security measures. And, as researchers from NCR demonstrated at the annual Black Hat hacker conference in Las Vegas in August, even EMV technology can be compromised.

Contactless mobile payments uses two-factor authentication and tokenization, which does not expose card data at the point of sale, making it more difficult to hack. Tokenized contactless transactions are fundamentally more secure, than traditional mag-stripe swiped transactions. If fact, the NCR researchers at Black Hat recommended that consumers pay with contactless mobile payment systems like Apple Pay, which uses the same tokenization technology that Android Pay and FitPay have implemented.

Does that mean mobile payments are “The Winner in Payment Security” as ISACA’s report suggested? I think so, but data security threats are constantly evolving. There is no one-time solution for payment security. We must be continually finding new ways to keep payment transactions and consumers’ card data safe from attack.

Ultimately, I believe that wider adoption of contactless payments will make paying for things faster, more convenient… and much safer for consumers and merchants. The challenge for the industry is to stay ahead of the latest threats and to help separate perception from reality when it comes to mobile payment security.

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Michael Orlando is Co-founder and CEO of Fit Pay, Inc., a white-label technology platform that adds contactless payment capabilities to wearable devices—with very little start up time, no investment in software development and instant access to the leading card networks. FitPay was named a Gartner “Cool Vendor” in consumer financial services for 2016. Learn more at www.fit-pay.com, or follow FitPay on Twitter.

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The Changing Payment Ecosystem

By Michael Orlando, CEO, Fit Pay, Inc.

How consumers pay, and what they pay with, is changing. The growth of contactless and mobile payment options and new attitudes about payments among Millennials are forcing the traditional payment paradigm to evolve. The way in which people pay is now being driven more by how they live and less by what’s in their wallet. This new payment ecosystem will introduce a whole new level of convenience and security for consumers, and tremendous benefits for retailers.

Evolution can be slow, but we’re closer to a new payment paradigm than you might think, and we have the Millennials to thank for that. They want to be able to grab a coffee after a run, and pay with their smartwatches, or foot the bill for a night on the town with their phones, and many of them already do. Twenty-three percent of Millennials use contactless payments at least once a week. That’s second only to higher income individuals, 38 percent of who tap and pay at least once a week.1

Millennials are also driving greater acceptance of alternative payment options by virtue of their aversion to credit cards. Only 33 percent of people 18 – 29 have a credit card, as opposed to 55 percent of adults ages 30 – 49, and 62 percent ages 50 – 64.2 Millennials are using alternative payments to avoid debt and manage spending, and in the process, forcing change.

Millennials may be driving the market, but all consumers will benefit from the new ecosystem. Contactless payments are faster and easier, and because many new payment methods don’t share credit card information at the point of sale (POS), they’re more secure.

Contactless payments also produce significantly less “friction” at the POS than traditional payment methods. While the overall payment experience has yet to be transformed into something completely frictionless (If you’ve ever felt the ease of stepping out of an Uber car without having to pull out your wallet, or experienced the joy of the MagicBand at Disney World, you know what I mean by completely frictionless), more mobile and contactless payment options are making the consumer payment experience better and better.

So what does that mean for business? Today, contactless payments are at $6.70 Billion and they’re estimated to grow to more than $17.56 Billion by 2021.3 The mobile payments market as a whole is estimated to exceed $1 Trillion by 2019.4 That kind of rapid growth means opportunities for retailers: faster checkout lines, reduced risk of data breaches, the ability to make paying a positive experience, and, perhaps most importantly, greater opportunities for consumer engagement.

Consider Starbucks. They tied their customer loyalty program into their mobile app so that customers could not only use the app to pay, but earn rewards when they did it. Payments through their mobile app went from 2.1 percent of US retail sales to 21 percent in one year.5

 It also means opportunities for new entrants to capture a piece of the trillion-dollar payment industry. With the ability to add secure payment capabilities to a wider range of devices, more players can now participate in the payment ecosystem, enabling them to not only build a stronger, more sticky relationships with their customers, but also to create new and recurring revenue streams.

It may take time before we say, “goodbye” to our cash and plastic credit cards, but mobile payments today look a lot like ecommerce circa 1997. The snowball has started to roll down the mountain. And for those are willing to step into the payments space, it means the opportunity shape this transformation.

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Michael Orlando is Co-Founder and CEO of Fit Pay, Inc., a white-label technology platform that adds contactless payment capabilities to wearable devices—with very little start up time, no investment in software development and instant access to the leading card networks. FitPay was named a Gartner “Cool Vendor” in consumer financial services for 2016. Learn more at www.fit-pay.com, or follow Fit Pay on Twitter.

 

  1. https://www.accenture.com/t20151021T165757__w__/us-en/_acnmedia/Accenture/next-gen/na-payment-survey/pdfs/Accenture-Digital-Payments-Survey-North-America-Accenture-Executive-Summary.pdf
  2. http://www.bankrate.com/finance/consumer-index/money-pulse-0616.aspx
  3. http://www.marketsandmarkets.com/Market-Reports/contactless-payments-market-1313.html
  4. http://www.nfcworld.com/2016/02/04/341939/global-mobile-payment-revenue-to-hit-620bn-in-2016/
  5. http://www.seattletimes.com/business/technology/starbucks-secret-on-mobile-payments/