August 10, 2015 6:34 PM

Biometric Technology Firm NXT-ID Seeks Patent For Cryptocurrency System, Completes Funding Round

NXT-ID, Inc., an Oxford, Conn.-based biometric technology company focused on the mobile commerce market, has filed for a patent for its electronic cryptocurrency management system. The NASDAQ-listed company also completed a public offering, providing funds to support the launch of its smart wallet.

The NXT-ID technology manages multiple traditional financial accounts and cryptocurrency accounts, including initiating transfers, currency exchanges, submitting payments, and receiving payments. An “abbreviated block chain” synchronizes transactions and balance validation to enable both online purchases as well as brick-and-mortar retail store transactions from a smart wallet.

Helping Crypto Go Mainstream

NXT-ID seeks to usher bitcoin and other cryptocurrencies into the mainstream payments industry.

David Tunnel

“What’s unique about this patent is that it introduces what we believe is the first payment experience that makes crypto-currency uniform across all payment transactions and payment methods, which is a chief inhibitor to wide scale acceptance of crypto-currencies like bitcoin, ” said David Tunnell, executive vice president and chief technology officer.

“With this technology, a common smart wallet platform can be used by an individual to manage not only all of their conventional financial accounts (e.g. debit cards, check cards, credit cards, etc.), loyalty cards, membership cards and the like, but also provide for the secure management of a multiple alternative currency accounts, thereby facilitating the real-time use of one or more crypto-currencies as a method of payment, receiving crypto-currency payments, and crypto-currency exchange. This technology also enables bitcoin to be used across multiple payment mediums including magnetic stripe, NFC, and other emerging payment methods.”

Smart Wallet Without Internet?

The company also provides a smart wallet called Wocket. Wocket eliminates the need for physical cards without the use of a smart phone or Internet connection. In addition to passwords and private notes, the Wocket allows any credit, debit, membership gift or loyalty card to be loaded and protected on Wocket.

“We have taken our Wocket design from a working beta model through to a finished manufactured product; which in the case of the WocketCard means enclosing a package of sophisticated electronics in a card less than 1mm thick,” said CEO Gino Pereira in a letter to shareholders.

The WocketCard works virtually anywhere magnetic stripe cards are accepted and can only be used with the owner’s biometric (voice) stamp of approval or with a PIN.

“We continue to build out our patent and IP portfolio as the payment industry evolves. This technology is another important step of how we intend to build the payment solution of the future,” said Pereira.

Also read: Cryptolabs Case Bitcoin Hardware Wallet Melds Biometrics, Multi-Sig And Ease-Of-Use

Public Offering Provides Funding

Gino Pereira

NXT-ID recently completed a round of funding. The company offered 1,721,429 shares of common stock at a price to the public of $1.75 per share.

NXT-ID received gross proceeds from the public offering, before deducting the placement agent fees and estimated offering expenses payable by NXT-ID, of approximately $3,012,500.

The company intends to use the net proceeds received from the offering for general corporate purposes including working capital, and marketing activities to support the recent launch of its lead product the Wocket smart wallet.

Images via Shutterstock and NXT-ID.

Lester Coleman

Lester Coleman is a media relations consultant for the payments and automated retailing industries.