Zwipe has announced that it will be streamlining its operations with a plan that is expected to save the company as much as NOK 40 million (around $4.38 million) every year. The program has already been approved by Zwipe’s Board of Directors, and will be fully executed before the end of November 2019. Any related costs will be reflected in the company’s Q4 report, while the benefits are expected to kick in in the first quarter of 2020.
Zwipe will reduce the size of its staff and cut back on operational expenses as part of the streamlining plan, which is being enacted despite the stronger-than-expected results in the company’s Q3 fiscal report. CEO André Løvestam indicated the decision will allow the company to focus its operations, and was made possible thanks to a strategic collaboration with IDEMIA that is leading to the development of a new “disruptive technology platform.”
IDEMIA and Zwipe first joined forces back in September, when they revealed that they were working together to develop a low-cost biometric payment card.
“We believe this innovation is a game changer and a catalyst for growth in the industry,” said Løvestam. “The new platform will integrate and simplify component design, drastically reducing costs of the product itself and the manufacturing process. As a result, a complete biometric payment card cost of below USD 10 is becoming realistic, providing an accelerated path to mass volumes while giving Zwipe a long-term cost leadership position.”
According to Løvestam, the move will enable Zwipe to commercialize its technology while still allowing the company to provide support to its existing customers.
Zwipe recently completed the prototype of an energy management chip that would allow biometric smart cards to operate without a charging station. The company has also been developing a new biometric payment device in conjunction with G+D.