Zwipe AS — Earnings Release 2020

Dec 23, 2020

Well positioned for growth

Well positioned for growth

Season's Greetings from André Løvestam, CEO of Zwipe

OSLO, NORWAY - 23 DECEMBER 2020 - Zwipe is enjoying strong traction in the

payments industry with solid operational and commercial progress this fall and

early winter.

Leading stakeholders in the global payments

industry are engaging with Zwipe because of our full dedication to biometric

payment solutions, and our leading technology platform, Zwipe Pay ONE. To

support our global efforts, we have recruited seasoned experts, both commercial

and technical, from leading companies to accelerate our mission of bringing the

next generation contactless payment solutions globally.

Acceleration in partnerships and issuer engagements

Our collaboration with TietoEVRY, a leader in payment services in the Nordics

and Baltics, has already proven highly effective in accelerating

commercialisation of Zwipe Pay ONE. Within weeks of our go-to-market agreement

we jointly secured the first pilot on Zwipe Pay ONE with OP, the largest

Financial Services Group in Finland. The bank aims to bring biometric payment

cards to the market after the pilot. At the same time, many more dialogues with

banks are ongoing, boding well for further commercialization in Europe and

beyond.

Consolidating our global delivery footprint

We continued to leverage and expand our strong global partner network. In the

last six weeks alone, we consolidated our position in the Middle East

significantly, cementing and finalising our technology and go-to-market

partnerships with three leading players in card

payments, areeba, Inkript and VeriTech. Our partners have already started to put

biometric payments on the agenda of leading issuers in the Middle East. We are

also gaining momentum in other fast-moving regions. During the year,

we also announced five new smart card manufacturing customers (in Asia, LATAM

and Europe) and some first small orders.

Continuous progress equals de-risking

Monday 21 December, 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 which, combined with our comprehensive biometric system on card

offering and our deep technical and ecosystem expertise, is what makes Zwipe the

natural "One Stop Shop" for all smart card manufacturers aiming to meet the

soaring demand for a more convenient, truly contact free payment experience. The

ICCN certification is one important step further in de-risking our solution

towards the long awaited launch in 2021.

Looking ahead

In 2020 we have experienced increased interest in biometric payment cards with

commercial activities picking up and first rollouts finally commencing on

certified biometric card platforms. We look forward to more such

rollouts during 2021 as the now mobilized ecosystem gains pace.

Market studies from the Nordics, the UK and the United States show strong demand

from consumers for safer and more secure contact-free payments. A vast majority

of consumers want their next payment cards to be biometric, and 1 in 2 is even

prepared to pay a meaningful fee to the issuers for all the benefits that next

generation cards deliver. We seem to face a broad, mass market demand, rather

than a niche market demand only. Consequently, the long-term potential of the

market for biometric payment cards (BPCs) seems to be much larger than

previously anticipated. The recent ABI Research report on BPCs pointed to the

likely long-term scenario that biometric payment cards will eventually take over

from today's contactless cards. In fact, I believe that biometrics will be as

ubiquitous in payment cards towards the end of this decade as it is in mobile

phones today.

We announced the first commitment for a pilot on Zwipe Pay ONE in 2020 and

expect many more to come, laying the foundations for the first commercial

deployments in 2021. While COVID-19 did cause some delays across some parts

of our ecosystem, we also experienced an unprecedented acceleration in our

engagements with issuers and card manufacturers in H2 2020. We are confident

that our continuous progress and strategic go-to-market partnerships, as well as

our technological leadership in biometric payment, are laying the foundation for

a long journey of value creation for our customers, our shareholders and for

society at large. We remain focused on securing important commercial wins going

forward.

I would like to take the opportunity to thank each valued member of

my outstanding team at Zwipe for their relentless efforts and to thank our

customers, partners and shareholders for their immense faith in Zwipe.

On behalf of everyone at Zwipe, I wish you all safe and happy holidays. See you

all in 2021!

Here is an overview of our recent major announcements:

·

André Løvestam, CEO of Zwipe presenting at APSCA

Event (https://vimeo.com/488463142)

·

Zwipe strengthens organization with top payments industry

talents (https://zwipe.com/news/zwipe-strengthens-organization-with-top-payments

-industry-talents)

·

Zwipe and VeriTech partner to deliver next generation contactless payments in

Kuwait (https://zwipe.com/news/zwipe-and-veritech-partner-to-deliver-next

-generation-contactless-payments-in-kuwait)   (https://zwipe.com/news/zwipe-and

-veritech-partner-to-deliver-next-generation-contactless-payments-in-kuwait)

·

Zwipe Pay ONE in biometric payment card pilot (https://zwipe.com/news/zwipe-pay

-one-in-biometric-payment-card-pilot)  (https://zwipe.com/news/zwipe-pay-one-in

-biometric-payment-card-pilot)

·

S (https://zwipe.com/news/swedish-consumer-survey-shows-large-interest-in

-biometric-cards-in-response-to-covid-19-in-store-payment-concerns)wedish

consumer survey shows large interest in biometric payment cards in response to

COVID-19 (https://zwipe.com/news/swedish-consumer-survey-shows-large-interest-in

-biometric-cards-in-response-to-covid-19-in-store-payment-concerns)

·

Zwipe and Areeba join forces (https://zwipe.com/news/zwipe-and-areeba-partner-to

-bring-nxtgen-biometric-contactless-payments-to-banks-in-the-middle-east

-africa)  (https://zwipe.com/news/zwipe-and-areeba-partner-to-bring-nxtgen

-biometric-contactless-payments-to-banks-in-the-middle-east-africa)

# # #

About Zwipe

Zwipe is pioneering the next generation contactless payments experience,

providing biometric payment cards components and wearables technology that

enable consumers to authorize transactions with their fingerprints without

compromising their privacy. Together with an ecosystem of partners including

global brands within digital security and financial services, Zwipe is "Making

Convenience Safe & Secure" for banks, merchants and consumers. Zwipe's solutions

address the hygiene and data theft pitfalls inherent in traditional

authentication methods. Headquartered in Oslo, Norway, with a global

presence, Zwipe is leading the next great shift in payments from contactless to

contact free. To learn more, visit www.zwipe.com

For further information please contact: André Løvestam, CEO, +47?991 66

135  info@zwipe.com