Zwipe, a Norwegian firm offering biometric technology to the payment industry, has unveiled an organisational overhaul plan to cut operational expenses by NOK40m ($4.38m).
As per the streamlining plan, which has already been approved by Zwipe’s board, the company will also indulge in a headcount reduction.
Zwipe’s latest move follows an agreement it inked with French security and identity solutions provider IDEMIA in September.
As part of the agreement, both the companies agreed to bring a new biometric payments card platform to the market.
The streamlining programme, according to Zwipe, is likely to be executed this month. The related one-off costs will reflect in its fourth-quarter results.
Zwipe CEO André Løvestam said: “The product roadmap streamlining that we are now launching has been made possible thanks to the strategic collaboration with IDEMIA on a disruptive technology platform. We believe this innovation is a game-changer and a catalyst for growth in the industry.
“The new platform will integrate and simplify component design, drastically reducing costs of the product itself and the manufacturing process.
“Zwipe’s streamlined roadmap enables simplifying and focusing the company, while maintaining competent capacity to support our customers. In combination with the announced 90% guaranteed rights issue, we see a clear path toward commercialising our technology, with the required capital resources to get to that point.”
In September, Zwipe supplied the first order of its second-generation biometric inlay for smart cards.
During the same month, Thailand-based dz card International also signed a partnership with Zwipe recently to roll out biometric payment solutions.
In June, Zwipe expanded its non-exclusive partnership with Infineon Technologies to tap the growing biometric card market.