U.S. Markets open in 40 mins

The FitPay-Discover Partnership, Explained

Elizabeth Balboa

What Happened

NXT-ID Inc (NASDAQ: NXTD) spiked nearly 70 percent in Monday's pre-market session after announcing a payment partnership between subsidiary Fitpay and Discover Financial Services (NYSE: DFS).

The network services agreement will allow Discover Digital Exchange users to make retail transactions through Internet of Things devices linked to the FitPay Payment Platform.

Why It’s Important

FitPay is a financial platform enabling contactless payments to more than 10 million global merchants through wearable and IoT technology. Its partnership with Discover expands its network and user base, thereby increasing its revenue potential.

"Making payments easy, secure and frictionless requires building an extensive ecosystem,” Michael Orlando, COO of NXT-ID and president of FitPay, said in a press release. “Discover is a unique and important part of that ecosystem, and we are very pleased be able to make the network available to devices on the FitPay Platform."

What’s Next

FitPay markets itself to wearable manufacturers as a recurring revenue stream and a consumer incentive to continue engaging the product.

"With the advancements of mobile technology, the way customers interact with merchants is being re-imagined with an eye toward more secure and convenient methods of payment," Diane Offereins, Discover's president of payment services, said in the announcement. "This integration with FitPay is one more way in which Discover is continuing to enhance the payment experience and provide more options for our cardholders on how and where they pay."

Other financial institutions and merchants may soon see benefit in a partnership.

At time of publication, NXT-ID shares were trading up 47 percent off the open at a rate of $3.21.

Related Links:

Can NXT-ID's Crypto Platform Lead More Merchants To Accept Digital Currency? Maxim Weighs In

NXT-ID Rallies After Announcing Cryptocurrency Retail Payment Platform

See more from Benzinga

© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.