2024-12-20
We have interviewed Robert Puskaric, CEO of Zwipe. Robert talks about the business, the ongoing rights issue and the strategy going forward. He also gives his view on the biometrics market and which potential value drivers investors should keep an eye on in 2025.
Would you like to tell us a little about Zwipe and what the company does?
Zwipe is a technology company specializing in the development of complete system solutions for the latest generation of biometric smart cards. These cards can be used as debit and credit cards, crypto wallets, ID cards, access cards, and cards for access to medical records, servers, and other IT access.
Our smart cards are equipped with a biometric fingerprint sensor that ensures that the card can only be used by an authorized person. This means that the right individual's fingerprint must be applied to the card for it to work. The system solution for the cards is Java-based, which allows for the downloading of various applets onto the finished card. These applets ultimately determine whether the card is to be used, for example, as a MasterCard debit card or as a HID SEOS access card.
For access cards, we have control over the entire production chain, which means that the end customer only needs to apply the company logo, the individual's photo and their authorization level.
How do you differ from other companies operating in biometrics?
Biometrics is a broad term. Some companies specialize in developing algorithms for biometric scanning and matching, while others focus on hardware development for fingerprint sensors. Additional players supply biometric readers for access control systems that read and match fingerprints, irises or facial data. These systems often require biometric data to be stored centrally in corporate databases, which can create challenges with GDPR regulations.
We offer and sell ready-made biometric access cards of the highest quality. Our cards have undergone rigorous quality tests by MasterCard and Visa and are compatible with existing infrastructure for readers on company doors and entrances. This enables a rapid increase in the level of security and a cost-effective implementation, as only the cards need to be replaced. In addition, the individual's biometric data is stored only on the card, eliminating the need for central storage.
How do you intend to use the proceeds from the upcoming rights issue?
The funds will be used exclusively for go-to-market related activities.
Decisions to change, upgrade or replace components and parts of a comprehensive solution for physical and logical access take time and do not happen overnight.
Our focus going forward is to achieve commercial breakthrough. At the same time, we need more time and capital for our current stakeholders to evaluate ongoing pilot projects, which include up to 100 users per company. Hopefully, these projects can transition to operational implementation and daily use of our biometric access cards and logical access solutions.
We also want to inform companies more about the security flaws in today's access cards, and that their access cards are not always in line with EU regulations regarding security.
Can you elaborate a little on the decision to focus fully on access cards?
Zwipe was previously focused primarily on our biometric cards being used in the large volume MasterCard and Visa debit card market. However, the analyses and forecasts on which the entire industry based their decisions turned out to be incorrect.
At the same time, we conducted smaller-scale dialogues with partners and companies regarding the use of our biometric smart cards as corporate cards for authorization and access management.
In January of this year, after the lukewarm interest in biometric payment cards, we decided to shift focus to access cards and logical access.
What is your view on the overall biometrics market? What is needed for adoption to take off?
We need to complete a number of deals with our current pilot customers to signal to the market that well-known and security-conscious companies have chosen to increase their security with our biometric cards.
More companies need to be informed about the security risks of outdated access control systems, which are often easy to hack. Many companies lack insight into who is actually moving around their premises because their current access cards are rarely personalized. Cards are often used without a PIN code during working hours and can be loaned between employees and consultants.
Do you notice greater interest from any specific industry?
We have chosen to focus on three verticals: data centers, airports and energy production facilities, such as nuclear power plants, where we have received particularly positive feedback. At the same time, we are also seeing great interest from industries such as the fashion industry, the pharmaceutical industry, the automotive industry, IT companies, as well as various government agencies and municipalities.
What are the prospects for achieving profitability?
Profitability is further down the road. Our current focus is on driving adoption of our biometric cards for access management.
What are the potential value drivers that investors should keep an eye on in 2025?
Investors should follow our communication about new pilot projects and agreements where companies choose to implement our biometric smart cards in their operations.
We thank Robert Puskaric for the interview and wish him and the company every success in the future.
Disclaimer:
This is an interview that has been done on behalf of the company. Impala Nordic and/or people behind Impala Nordic are guarantors in the company's ongoing rights issue.
