Sales of components for payment cards contracted and Income streams from licensing of intellectual property
Paragon ID is pleased to announce that its subsidiary company AmaTech Group Limited has concluded a number of contracts in recent weeks with leading companies in the Payment sector.
Paragon ID Payment – acquisition of AmaTech Group Limited
Paragon ID launched its activity in the Payment sector in 2018 with the acquisition of AmaTech Group Limited.
AmaTech pioneered the development of contactless technology in EMV® smartcards (Europay Mastercard Visa, international security standard for payment cards). Its original and innovative technology in inductive coupling has enjoyed considerable success as one of the preferred contactless solutions in payment cards. AmaTech has since established itself as a leader in bringing contactless technology to premium payment cards made of metal, one of the fastest growing niches in the payment card market, particularly in the US.
AmaTech provides the card payment industry with the world’s first inlays with a dual interface chip module, a product that simplifies the production of metal-embedded smartcards. This solution enhances the user experience by creating a convenient and efficient contactless payment that can be activated on either side of the metal card and meets the high security requirements of RFID-enabled smartcards in the Payment sector.
Paragon ID Payment – revenue streams
Revenue streams in Paragon ID’s Payment activity are generated in four different ways.
1. Design, manufacture and sale of specialist inlays and DI chip modules (component bundles) for contactless and dual interface plastic payment cards (as in the case of Arroweye, cited below)
2. Design, manufacture and sale of specialist metal inlays and DI chip modules for contactless and dual interface metal payment cards
3. Licensing, to card manufacturers, of its patented, contactless technology in booster antenna inlays and DI chip modules for contactless plastic cards and dual interface metal cards
4. Consulting services to major card manufacturers and issuers who recognize the value of AmaTech’s expertise in the domain of contactless cards, particularly in metal contactless cards.
These income streams are underpinned by AmaTech’s Intellectual Property and the strength of its protection through international patents..
Business line activity and outlook
To the extent that these revenues comprise sale of high-value-added components and the licensing of usage of Intellectual Property, they are more recurrent in nature and more contributive in terms of EBITDA, than many of the Company’s other activities.
Given that a large proportion of the world’s metal payment cards are distributed in the US, these developments will expand Paragon ID’s US footprint, better balancing its geographical coverage between Europe and the rest of the world.
Clem Garvey, Paragon ID CEO, commented:
"We are very proud of the quality and ingenuity of the technology that AmaTech has developed over many years of significant investment. We are equally proud to provide access to this technology, through component sales or through licences, to some of the world’s most innovative players in the payment sector, like Arroweye, who recognise the value of our IP. Recent signatures, involving extension of licences and sales of components, position us to deliver on an ambitious business plan for the Payment business line which will significantly improve the overall Paragon ID margin mix.”
David Finn, Founder and President of AmaTech Group commented:
“AmaTech has found an ideal home within Paragon ID and our teams are delighted to be part of the Paragon ID transformation. Paragon ID’s investments, for example, in additional equipment for prototyping and manufacturing our products, have allowed us to accelerate the commercialisation of our technologies. These recent signatures demonstrate the pertinence and the power of combining technological expertise with the industrial, financial and commercial firepower of Paragon ID.”Peter Krauss, President and CEO of Arroweye stated:
“The values of innovation, teamwork and pride in providing measurable results for our customers inspire us every day. The partnership built with Paragon ID in recent months has enhanced our technological offering and improved our capabilities to deliver the unparalleled customer service that is fundamental to everything we do.”
As a 20 years old Card Solutions Provider, Arroweye utilizes patented technologies and methods to deliver on demand credit and debit card solutions to Financial Institutions, Processors and Aggregators. Headquartered in Henderson Nevada the company also has offices in Chicago and Manufacturing in Louisville, KY.
For further information about Arroweye, visit Arroweye.com. For media inquiries please contact firstname.lastname@example.org.