Mobile commerce firm closes sale of SmartID to SuperCom
On Track Innovations (OTI), a leading developer of cashless payment technologies, has announced the successful sale of its SmartID division to SuperCom, a digital identity solutions provider. SmartID was sold for approximately $10 million and SuperCom is expected to continue the organization’s daily operations, taking on SmartID’s clients and ensuring they have access to the acquired organization’s services and products. SuperCom is also expected to take on SmartID’s employees, ensuring that those that had worked in the division previously are able to continue working.
Additional funds to be issues to OTI depending on business performance
OTI is expected to receive some $7.5 million in additional funds depending on the completion of certain business milestones in the future. The organization may attain another $5 million by reaching certain business performance milestones over the next three years. These funds, along with those garnered from the sale of its SmartID division, are expected to help OTI further expand its operations in the mobile commerce field.
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NFC continues to lose traction in mobile commerce
OTI specializes in mobile commerce that is based on NFC technology. The organization has managed to establish a strong presence in the mobile field, but NFC technology has been losing popularity for some time. In the past, NFC was considered the backbone of mobile commerce, allowing consumers to easily use their smartphones to pay for products. Now, however, a multitude of security concerns and the availability of alternatives is making NFC less popular in terms of mobile commerce.
Consumers concerned about their security
NFC is often criticized for its lack of security features. Many hackers have been able to show how vulnerable, drawing attention to the dangers that exist in the mobile commerce field. The mobile sector has become quite attractive to hackers that are looking to exploit financial information and NFC-based mobile payment solutions have become an ideal target. While OTI and other organizations specializing in NFC-based mobile payments have put significant focus on the security of their solutions, many consumers remain leery of NFC technology in general.