Zwipe AS — Regulatory Filings 2021

Jul 9, 2021

Zwipe getting ready to drive Next-Generation Payment Cards

Zwipe getting ready to drive Next-Generation Payment Cards

Summer Greetings from André Løvestam, CEO of Zwipe

OSLO, NORWAY - 9 JULY 2021

Dear stakeholders of Zwipe,

Through the first half of 2021, our global payment ecosystem of Smart Card

Manufacturers, Payment Processors, Banks and Go-to-market Partners has continued

to expand at a rapid pace, further strengthening our foundation for future

market success.  In these challenging times, our growing team of competent and

passionate Zwipers, spanning 14 different nationalities in nine

countries across three different continents and five time zones from Colorado

Springs to Singapore, has demonstrated exceptional teamwork with

a solid focus on customers. I am delighted to share that the

interest in biometric payment cards based on Zwipe technology, which deliver a

more convenient, secure and safe means to pay, has never been stronger. The

voices of consumers captured by Zwipe in the UK, USA, Canada, Sweden, Norway and

Romania since August last year are encouraging and consistent with

similar findings from card schemes and other industry players.

Entering the Indian subcontinent and APAC region

In the first half of 2021, we announced six

new Smart Card Manufacturers into our ecosystem:

·

KL HI Tech (https://www.biometricupdate.com/202104/zwipe-signs-up-indian-partner

-to-manufacture-biometric-payment-cards) in India

·

Beautiful Card Corporation (https://findbiometrics.com/zwipe-unveils-beautiful

-partnership-in-biometric-cards-effort-7051101/) in Taiwan

·

Silkways Card and Printing Ltd  (https://findbiometrics.com/zwipe-establishes

-biometric-cards-partnership-bangladesh-706162/)in Bangladesh

·

Three card manufacturers in Europe and Asia who at this stage want to remain

anonymous

Together, these manufacturers deliver around 200 million payment cards annually.

In addition, we extended and expanded our partnership with TAG Systems, who

delivers 100 million payment cards annually. Looking forward, it is great to see

that our SCM and processor and issuer pipelines continue to grow.

The encouraging developments with card manufacturers received a big boost

when Asia's largest payment processor, Financial Software and

Systems (https://www.finextra.com/pressarticle/87526/zwipe-ties-up-with-fss-for

-global-roll-out-of-biometric-cards) (FSS) embraced our next-generation payment

cards platform based on Zwipe Pay ONE technology. FSS manages over 800 million

cards, and we are now working with them to bring our ground-breaking innovation

globally. We also strengthened our regional presence by appointing Masterline

and Sonali Intellect Ltd. as our business development partners in India and

Bangladesh, respectively.

Acceleration in the MENA Region and Europe

Middle East and North Africa (MENA)

On the back of growing demand for biometric payments cards in the MENA

region, Network International (https://findbiometrics.com/zwipe-adds-network

-international-to-mea-partner-roster-for-biometric-cards-706281/) (NI),

providing payment services to over 200 banks in Middle East and Africa,

and Middle East Payment Services (https://findbiometrics.com/zwipe-gets-mena

-distribution-partner-biometric-card-solution-76202103/) (MEPS), a leading

payment service provider in the Levant region, entered new partnerships with

Zwipe. NI and MEPS have boosted our reach and delivery capabilities in the MENA

Region, on top of our already strong network of prominent partners in the

region, notably Masria Digital Payments (https://findbiometrics.com/masria

-partners-zwipe-biometric-payments

-032601/), Inkript (https://thepaypers.com/cards/inkript-zwipe-to-launch

-biometric-payment-cards--778700), areeba (https://findbiometrics.com/areeba-to

-offer-zwipe-biometric-payment-solutions-to-banks

-910147/) and Veritech (https://mobileidworld.com/zwipe-teams-with-veritech-on

-biometric-payment-cards-platform-912041/). To effectively serve our growing

partner network and issuers, we appointed Ramzi Saboury as the General Manager

for the MENA region. Ramzi brings over 26 years of experience and network in

payment services in MENA from leadership roles in Kuwaiti banks, VISA and

areeba.

Europe and the UK

In the past few months, we have seen an increasing in-flow of interest from card

manufacturers in multiple regions, most notably in Europe. The same can be said

for issuer engagements that come through our Processor Partners and Card

Manufacturers in Europe, especially in the UK and Nordics. This is proof that

our "Megaphone" partner strategy works! Swedish

fintech VOPY (https://mobileidworld.com/swedens-vopy-launch-100000-zwipe-powered

-biometric-cards-702191/), providing embedded financial services to clients

globally, and France-based payment service provider, be ys

Pay (https://www.cardsinternational.com/news/france-be-ys-pay-zwipe-biometric

-payment-cards/), selected Zwipe Pay ONE (ZPO) cards for their  ssuers, aiming

to pilot Zwipe Pay ONE this year. Both these developments came within months of

OP Bank's decision to pilot with cards based on the Zwipe Pay ONE platform

togheter with our Go-to-market partner, TietoEVRY. OP is Finland's largest

financial services group and serves over four million customers.

Delivery of Zwipe Pay ONE on track

We had strong progress in the development of Zwipe Pay ONE, the world's first

Single Silicon based biometric payment platform offered to card manufacturers

globally. In April 2021, we demonstrated our enrollment solution and touch-free

payment transactions above the transaction cap at a Point-of-Sales terminal with

test keys to emulate fully EMV authorized and authenticated transactions in a

live environment. The feedback from the market was very positive as everyone

could see how these cards quickly and reliably provide a considerable boost to

user experience and security.

In fact, we have now passed most critical milestones and major risk points,with

only piloting and certification left before commercialization in mass volumes.

Next steps - pilots and certification

Apart from pilots planned from late this quarter, certification will represent

the last milestone before commercialization. We have already performed pre-tests

at accredited test labs with excellent results.

We are now working closely with the card schemes to secure these processes,

which will be explained in detail during our H1 2021 reporting on 26 August. In

the coming weeks, we will start handing out Zwipe Pay ONE demo cards

to issuers and partners and continue to help them prepare for commercial

launches.

Zwipe 2.0

Last, but not least, H1 2021 has seen further strengthening of our team across

all functions - commercial, technical, operational and regional. We have engaged

every Zwiper in developing and honing our Winning Team Culture, with our Core

Values driving us to be Innovative, Collaborative, Adaptable and Passionate.

Each recruitment is intended not only to add capacity, but also to uplift our

team. I am also pleased to see further strengthening of our board.

I take this opportunity to thank each member of the Zwipe team for their

remarkable effort and passion to our mission of Making Convenience safe and

secure. My thanks also go out to all our customers, partners, and shareholders

for sharing this mission as strongly as every Zwiper.

I wish each one of you a very safe and happy summer ahead!

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