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Making Convenience Safe and Secure
Zwipe quarterly update – First quarter 2021
28 April 2021 | André Løvestam, CEO
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Zwipe has the most widely piloted solutions in the biometric payment marketplace
Zwipe is a biometric fintech company pioneering the next generation contactless payment experience
Passive inlay*ISO contact plate module
with biometric SEFingerprint sensor
* A passive inlay has no components mounted on i t, it only contains an antenna to do the energy harvesting and communication l ines to handle the encrypted communication between the sensor and the secure element.
The strong operational momentum continues in 2021:
Customers• Announced 5 new customers: card manufacturers with a total 180 million payment cards shipped
annually
Partnerships• Extended partnership with TAG Systems, who delivers 100 million cards annually
• Partnered up with Masterline to ensure local presence in India
Technology• The Zwipe Pay ONE project has passed its most critical milestones and major risk points
• Today, Zwipe Pay ONE demo cards will be presented for the first time
Commercial• Zwipe Pay ONE pilots announced with Vopy in Sweden piloting Zwipe Pay ONE from Q3 2021
• Be ys pay to offer Zwipe Pay ONE in France and Benelux
Consumer insights• Zwipe and partners conducted several insights studies from the Nordics, UK and the United States showing
strong consumer interest for safer and more secure payments with high willingness to pay
Organization • Significantly strengthened the sales organization to meet the demand with new Chief Sales Officer and
new VP Key Accounts, while also recruiting a regional General manager for the MENA region
Financials• Strong cash position (MNOK 109) and still low monthly cash outflow (MNOK 6)
• Sales revenues in Q1 2021 were MNOK 0.3 (MNOK 0.4)
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This is Zwipe:
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1. Addressing a 4-billion-unit market characterized
by growth from innovation
2. Mass-market price inflection point in sight, with
Zwipe positioned for technology and cost
leadership with disruptive technology and strong
IP portfolio
3. Unique one-stop-shop offering, with end-to-end
systems integrator approach and trusted advisor
role
4. Soaring demand due to COVID-19,
strong consumer willingness to pay
5. Fast-growing customer and partner base with
global coverage
6. Strong management and board
7. Lean and scalable business model ready for growth
Enabling contactless
payments above or below transaction limits
The value-add of biometric payment cards
SECURITY
Only the authorized user
can complete transactions
No PIN which can be stolen
CONVENIENCE SAFETY
Allows the user to avoid
touching payment terminals regardless of the amount
PRIVACY
User’s biometric information
is only on the card and nowhere else
INNOVATION
Brings novelty and coolness
factor to cardholders
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Multi-die
System in Package (SiP)
Discrete Components
Single Silicon
Industry Progression: Component Integration with radical complexity-down, size-down, cost down
2017 - 2021
2020 - ?
2021 onwards
replaces the Secure Element, Microcontroller and >30 components with a
single chip
offers best in class biometric performance and energy efficiency
enables radical cost reduction, highly competitive prices and mass volume
market take-off
Zwipe retains worldwide exclusive distribution rights for the lifetime of the
product to all manufacturers of payment cards, wearables and other payment
solutions (except IDEMIA), and also to their suppliers
2: Mass-market price inflection point in sight Zwipe poised for cost and technology leadership with single silicon solution
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Zwipe’s strategic partnership with IDEMIA is on track to deliver this radical unit cost reduction. Most major risk points are already passed, and we are targeting first commercial deployments for 2021.
high bill of material
high production costs
(due to cold lamination process)
Expensive yield loss
728 April 2021
Strictly Confidential
Elements of Zwipe Pay ONE
Zwipe Pay ONE Package
basic
1. ISO Contact Plate Module
2. Biometric Java Card OS
3. Inlay & Card referencedesigns
4. Integration Support
optional
5. Biometric aware payment applets:
• VISA VBSS
• Mastercard M/Chip Advance
• Local Schemes
6. Fingerprint Sensor
7. Prelaminate sheets
8. Enrolment solutions
Fingerprint Sensor
Idex IDX3405 for post-placement
1 2
3
65
Prelaminate Sheet
made to customer specification
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7
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3: The cornerstones of Zwipe’s competitive positionOur p la tfo rm towards mass marke t dep loyments o f b i ometr i c payment ca rds and wearab les
Zwipe’s competitive position is
built on the combination of our:
✓ Technology cost and performance
leadership
✓ One-stop-shop offering with
complete turn-key solution
✓ Value-adding trusted advisor
✓ Aggregator role → better prices
✓ Full focus and dedication to
biometric payments
✓ Passion, agility and willingness to
serve
Zwipe Pay ONE will offer card
manufacturing customers a solution with superior energy efficiency and excellent biometric performance at highly
competitive prices
The first-of-its-kind solution
We also offer professional services to
banks and issuers on biometric payments, consumer insights, marketing, presentation and pilot execution services
Completely end-to-end
Exclusive partnership with Thomas Greg & Sons do Brasil, to enable Latin American marketplace
Partnership with areeba and Inkript to address demands in the Middle East, Africa and Central Asia
Goldpac, XH Smart Tech., Silone Cardtech, Toppan Forms Card Tech., Asia Credit Card and Watchdatain APAC region
5. Zwipe’s global and growing cards supplier network
Partnership with dz card,strengthening capacity to support issuers in Southeast Asia
Zwipe is now engaging with more than 40 of the world’s top 50 card manufacturers, of which 18 collaborations have been announced (and 4 are currently anonymous)
Long standing collaboration with CPI Card Group, largest
domestic card manufacturer in the United
States
Long standing collaboration with Thales (Gemalto)
Selected by TAG Systemsto unlock the potential from
European Challenger Banks
Selected by Giesecke + Devrientto develop biometric wearable
Partnership with AllCard Inc. to address opportunities in the Philippines
Partnering with Idemia to offer disruptive biometric payments card platform
Partnership with MasriaDigital Payments, for the Middle East, Africa
Selected by Publicenter to offer biometric payment solutions
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Partnership with KL HI TECH adds to delivery capability in India and MEA Regions
Chosen by TAG Nitecrestto bring ZPO to UK Issuers
Partnering with TietoEvry to accelerate commercialization of Zwipe Pay ONE
Partnership with VeriTech to deliver next generation contactless payments in Kuwait
Zwipe engages with the whole payment ecosystem- reached out directly to over 300 banks, as well as partnered with important strategic partners of the banks
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Smart Card Manufacturers Processors / Perso bureaus Issuers / Financial institutions
Continued strong and growing pipeline
LebanonInkriptAreeba
EgyptMasria Digital Payments
JordanInkript
MauritiusInkript
KSAInkript Bahrain
Inkript
KuwaitVeritech
QatarInkript
IndiaMasterline
IndiaKL HI TECH
• The MENA region has
✓ 24 countries
✓ 578 million population
✓ 60% of world’s oil reserves
• In the MEA
✓ Card volumes are expected to
reach over 900 mill in 2021
✓ Card volume growth will be the fastest in the world
MENA and MEA Regions
✓ 1.4 bn inhabitants
✓ 830 mill debit cards in 2020
(26% YoY growth since 2010)
✓ 60 mill credit cards in 2020
(22% Y-o-Y growth since 2010)
✓ Schemes: Visa, Mastercard and RuPay(domestic)
Zwipe increases its presence in MENA and India
India
Zwipe’s delivery partners in the MENA Region
- HQ: Egypt
- Delivers cards to 80% of banks in Egypt
- Serves 175+ banks in the MEA incl. Kenya, Ghana
- Leading provider of payment cards, personalization and card processing in Egypt
- HQ: Lebanon
- Delivers card and payment services to 20+ banks
- Has created a JV with one of the largest banks in Egypt to deliver payment products
- Strong provider of card personalization and processing services in the Middle East
- HQ: Lebanon
- Serves 50+ banks in the Middle East and some countries in Africa
- Delivers payment cards to personalization bureaus and banks across the region
- HQ: Kuwait
- Delivers card personalization to most of the top 10-12 banks in Kuwait
- Delivers end-to-end card programs to banks, e.g. card personalization and management software
Zwipe’s delivery partnership and representation in India
- HQ: India
- Second largest card manufacturer in India
- Delivers 30 million payment cards annually to over 250 financial institutions across 52 countries in Asia and the MEA region
- Product line comprises Smart Cards, Banking Cards, Lottery Tickets, and Government Certificates
- HQ: India
- Strategic business partner of Zwipe, helping to bring Zwipe Pay ONE biometric payment cards to
- Financial institutions- Telecom operators delivering financial services - Smart card manufacturers
- Has a strong client and partner network in APAC, India and in the MEA region
7. Lean and scalable business model ready for growth Here are our key medium term financial aspirations:
Revenues • Annualised revenues of NOK 1 billion
Volume
• External predictions of global sales of Biometric Payment Cards vary.
– Leading analyst firms UBS and Goode Intelligence recently released new sector reports suggesting 15 % and 20 %
penetration by 2026 respectively
ASP • Targeting $3-4 ASP for Zwipe deliverables per biometric payment card or wearable.
Gross Margin• We target healthy gross margins
Our main competition is in the semiconductor industry, traditionally enjoying margins in the 40 % range.
EBITDA margin • Zwipe has a very scalable business model, targeting an EBITDA margin of 20%, rising with volumes.
Break Even Volume • Cash flow break even expected at 6m units (annual volume).
Current Financial
status• Monthly spending and cash flow is according to plan and previous announcements.
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HIGHLIGHTS: Last ~12 months’ rolling news flow – 1 of 4
Toppan Forms Card
Technologies, one of
the best positioned
SCMs in Hong Kong
and Macau, chose
Zwipe for the product
positioning,
development and
commercialization of
biometric payment
cards.
April 23, 2020
Asia Credit Card, a
specialist SCM based
in Hong Kong,
partnered with Zwipe to
offer biometric payment
products and services
April 28, 2020 June 8, 2020
Zwipe and IDEMIA
announced key
technical milestones
for Zwipe Pay ONE,
emphasizing that the
project is comfortably
on schedule to reach
time and cost targets,
with first availability
expected for the end of
this year and volume
roll-out in 2021
April 8, 2020
Announcement of an
agreement with IDEX to
combine their finger-
print sensor products
with the Zwipe Pay
ONE platform
enabling a complete
solution for biometric
payment cards
April 20, 2020
the company
announced that Masria
Digital Payments, one
of the largest SCMs in
the Middle East &
Africa, selected Zwipe
for its drive to roll out
biometric payment
solutions
March 25, 2020
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Zwipe steps up
collaboration with
Toppan Forms Card
Technologies (TFCT),
with TFCT placing an
order to begin small
scale manufacturing
of biometric payment
cards.
Announced partnership
with Watchdata
Technologies, a
Chinese based smart
card manufacturer
serving 80 million
banking customers in
over 70 countries.
June 18, 2020
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Announced the
extension and
renewal of an
exclusive partnership
with Thomas Greg &
Sons do Brasil, one of
the largest smart card
manufacturers in Latin
America
Announced partnership
with largest local
smart card
manufacturer in Italy,
Publicenter,
addressing the stronger
desire in Italy and
Europe for safer and
more secure
contactless payments
June 29, 2020 July 1, 2020
Announced partnership
with Liveo Research a
major supplier of PVC
materials to some of
the world’s largest
card manufacturers, to
offer a highly optimized
route to efficient and
scalable manufacturing
of biometric payment
cards
Announced the ramping
up of collaboration with
Smart Technology
Services (STS) to
industrialize Zwipe Pay
ONE. STS is one of the
first smart card
equipment
manufacturers to
develop a biometric
payment card milling
and embedding enabled
systems
July 28, 2020 August 18, 2020
Announced partnership
with Wisecard
Technology, a leading
supplier of EMV
personalization and
payment solutions to
support the co-
development of card
personalization
offerings for Zwipe Pay
family of products and
solutions
August 20, 2020
Announced partnership
with
Cardmatix on mass-
production of Zwipe Pay
ONE. Cardmatrix is a
leading player
in industrial
manufacturing and
testing equipment
specifically for mass
production of
payment cards
September 14, 2020
Announced partnership
with TietoEVRY to
deliver biometric
payments to banks in
the Nordic and Baltic
regions
October 8, 2020
HIGHLIGHTS: Last ~ 12 months’ rolling news flow – 2 of 4
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Announced partnership
with areeba to bring
nxtgen biometric
contactless payments
to banks in the Middle
East & Africa
Announced partnership
with Inkript to launch
Zwipe Pay ONE in the
Middle East, with
Inkript placing an order
to Zwipe commencing
small scale
manufacturing of
biometric payment
cards
October 14, 2020 October 15, 2020
Announced order of
300,000 sensors from
IDEX Biometrics to
support the rollout of
Zwipe Pay ONE to a
growing list of smart
card manufacturers
and issuers in Europe,
the Middle East, the
Americas and Asia
Launched Swedish
market study with
TietoEVRY showing
large interest in
biometric cards in
respons to Covid-19
in-store payment
concerns
October 19, 2020 November 17, 2020
Zwipe Pay ONE in first
biometric payment
card pilot in the
Nordics, with OP
Financial Group,
TietoEVRY and Tag
Systems
November 23, 2020
Announced partnership
with Veritech to
provide key
components for the
Zwipe Pay ONE
biometric payments
platform and take lead
on providing advisory
services directly to
banks and card issuers
in close collaboration
with VeriTech.
December 3, 2020
Zwipe and Idemia
announced that the next
generation biometric
card secure chip they
are co-investing in,
has obtained the ICCN
security certificate
from EMVCo, as
planned. Zwipe has
worldwide exclusive
rights to this
disruptive single-chip
biometric technology
December 23, 2020
HIGHLIGHTS: Last ~ 12 months’ rolling news flow – 3 of 4
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Announced partnership
with Vopy which aims
to launch a pilot in Q3
2021. Vopy aims for an
in itial rollout from Q4
2021, starting with
100.000 biometric
payment cards by the
end of this year and
500.000 cards in 2022
Announced four new
partnerships with
prominent card
manufacturers in Asia-
Pacific and Europe
which have chosen the
Zwipe Pay ONE
platform for delivering
biometric payment
cards to the issuers,
targeting pilots before
the end of 2021
February 3, 2021 February 10, 2021
HIGHLIGHTS: Last ~ 12 months’ rolling news flow – 4 of 4
Tag Systems steps up
collaboration, placed a
small order and will
proactively promote
Zwipe Pay ONE
towards issuers and
partner bureaus in
Europe and the USA to
sell and market next
generation payment
cards
After evaluating
available alternatives KL
HI-TECH selected Zwipe
Pay ONE as their
preferred biometric
card platform. India’s
second largest SCM aim
to manufacture Zwipe
Pay ONE test cards
from Q2 2021, pilot
ZPO from Q3 and have
first full market
launches end of 2021
March 2, 2021 April 6, 2021
French payment
solutions provider Be
ys Pay selects Zwipe
Pay One for their BPC
in France and Benelux,
engaging with issuers
from Q2 2021 with the
ambition to deliver
pilots from H2 2021
April 7, 2021
Appointing Ramzi
Saboury as GM for the
MENA Region and
Masterline as a
Strategic Business
Partner in India
strengthens
engagements
towards banks,
bureaus and
manufacturers in
those two key regions
April 12, 2021
Continued strong pipeline
Entering the next phase of increased commercial efforts and subsequent roll-out to consumers
• Near completion of the development of Zwipe Pay ONE
• Historically strong pipeline
• Highly competent, passionate and agile organization
• Disruptive technology that is in demand in the market
• Robust ecosystem of partners taking an increasingly proactive role in promoting Zwipe
This is all laying a strong foundation for long-term value creation.
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Q&A
