Zwipe has issued an operational update for its third quarter, outlining its progress in establish a solid footing in the emerging biometric payment cards market.
With its focus on a market that hasn’t yet reached a commercialization stage, Zwipe’s fiscal stats may not yet be particularly instructive. But the company is showing some progress in that area, particularly with respect to its efforts in cost reduction. Average monthly operational cash outflow went from NOK 7.6 million in Q3 of 2019 to NOK 4.4 million in the latest quarter.
Revenues, meanwhile, came in at about NOK 100,000. The company’s cash balance went from NOK 43.2 million in Q2 to NOK 117.3 million in Q3, thanks to a substantial private placement.
It’s the company’s positioning in the evolving payments ecosystem that is perhaps most important, however. That was certainly the focus of CEO André Løvestam’s commentary in the company’s Q3 report.
Løvestam highlighted Zwipe’s expanding network of smart card manufacturing customers and its technical partnerships in the area of biometric payment cards. Zwipe’s solid market position, he said, has also “generated strong support from international institutional investors,” which translated into the large private placement Zwipe received in the quarter.
Looking beyond Q3, Løvestam put a spotlight on Zwipe’s recent partnership with TietoEVRY, which he characterized as “a significant milestone” for the company. “Thanks to TietoEVRY’s deep relations with virtually all banks in the Nordics and Baltics, we see strong potential in supporting the launch of biometric payment cards powered by Zwipe Pay ONE in this region and beyond, meaningfully increasing our sales capacity and impact,” he said.
More broadly, Løvestam explained, the company is working to shore up its capacity to support large-scale commercial deployments in 2021, and has been hiring key executives to help support those efforts. “With a passionate, ever stronger team moving together towards our goal, and with institutional investors backing our vision, I am confident that we will keep this momentum while we continue to enhance our ability to create value for our customers, our shareholders, and for society at large,” he said.