Fingerprint Cards forecasts $40M Q1 earnings on biometric smartphones, payment cards, access control
Fingerprint Cards has announced revenue expectations of between SEK 310 million (roughly US$36.8 million) and SEK 350 million ($41.5 million) in the first quarter of its fiscal 2021 year, as well as several new implementations of its fingerprint biometrics.
The earnings estimate is the first issued by FPC, and is based on an exchange rate of SEK 8.20 per US dollar. The company expects the revenue to come from its supply of fingerprint sensors to mobile devices, as well as biometric payments and access control.
The company has also announced new implementations of its biometric technology in smartphones and access control devices, and is advising banks to stay ahead of the curve on payment cards.
In fiscal 2020, FPC booked SEK 1,255.7 million ($151.4 million) in revenue.
The global semiconductor shortage continues to be a challenge for Fingerprint Cards, and the company says it has intensified its efforts to make deals with new suppliers of important components both within and outside of mainland China.
Xiaomi has chosen Fingerprint Cards’ FPC1542 slim, curved, capacitive sensor for side-mounting to its recently launched Redmi K40, K40 Pro, and K40 Pro+ smartphones.
The curved surface of the FPC1542 enables a more seamless mid-frame integration, according to the announcement. The sensor was introduced in November, and the Xaiomi implementation is its first, Fingerprint Cards reports.
FPC recently passed 500 mobile devices implementing its biometric technologies.
Biometric payments and access control
The new biometric solution for PCs launched by FPC last August has been selected by Xaiomi for integration in the power button of its RedmiBook Pro 15.
The solution software is compatible with Windows 10 and a range of Fingerprint Cards biometric sensors. It works with Windows Hello and complies with Microsoft Enhanced Sign-in (SecureBio).
“We see a positive trend in demand for biometric authentication in consumer and enterprise PCs, and I’m really pleased to see the first commercial product launched with our new solution for the PC market,” comments Fingerprint Cards Senior VP of Business Line Mobile Ted Hansson. “We are poised for continued growth in this segment, providing the perfect way to add convenient and secure authentication to PCs.”
FPC announced two separate deals each to supply hundreds of thousands of biometric sensors to PC-makers in January.
Another access control implementation by Indian digital lock manufacturer Pinaka Innovation has been announced by FPC. The biometric locks for wardrobes and cabinets are dubbed QTouch, and integrate the FPC BM-Light sensor module, which provides seamless and secure authentication suitable for commercial areas as well as homes, according to the company.
Biometric payment card commercialization
The commercialization of biometric payment cards this year presents banks with a rare opportunity to attract new customers, Senior VP and Head of FPC’s Business Line Payments Michel Roig writes in a post to the company website.
Only 4 percent of U.S. consumers switched their primary bank in 2018, showing the loyalty people tend to have for their bank of choice. Citing results from a survey it recently conducted which show 51 percent of consumers would consider switching banks to get a fingerprint-enabled payment card, Roig argues that the business case for banks is compelling.
Biometric payment cards address security concerns and confusion over contactless payment limits, and also unify the card payment experience with other financial services through mobile payments or banking apps, Roig writes. Financial institutions can enhance their brand image by issuing biometric cards, with are of particular interest to affluent, executive, and millennial customer segments, according to the article.
From brand awareness, through lower customer acquisition costs, improved retention through secure, convenient and hygienic customer experience, to increased net income from card fees and “top of wallet effect,” Roig says banks that stay ahead of customer expectations by issuing biometric payment cards will fuel their ‘funnel.’