Datacard Invests in Maker of Smartphone Payment Tech
Minnetonka-based Datacard Group on Monday announced that it has made an equity investment in DeviceFidelity, Inc., a Richardson, Texas-based company whose technology turns smartphones into mobile payment systems.
Datacard Group manufactures identification card and credit card issuance technology. The investment-the terms of which were not disclosed-allows Datacard Group to offer DeviceFidelity's In2Pay suite of products. The In2Pay MicroSD can be inserted into the SD slot of a smartphone; users then download an accompanying application to allow them to make payments by waving their smartphones in front of near-field communication (NFC) terminals, which are being used by a growing number of retailers.
The In2Pay technology also includes the iCaisse, a case that is designed specifically for iPhones and that also allows users to make “wave-and-go” payments by placing their phones in front of a wireless reader.
Russell St. John, senior vice president of global marketing for Datacard Group, said in a statement that as mobile payment technology is adopted by more retailers throughout the world, “financial institutions will have a great opportunity to capitalize on this by easily complementing their card programs without having to make major infrastructure changes to their existing processes.”
Dallas Venture Partners also made an equity investment in DeviceFidelity, the size of which was not disclosed.
Privately held Datacard Group's annual revenues exceed $400 million, and the company employs more than 1,300 people worldwide, according to its website.