Coin is a Silicon Valley startup which manufactures NFC chips. By acquiring Coin, Fitbit hopes to incorporate the technology in its future products.
Fitbit has disclosed that it has acquired the assets of Coin, a Silicon Valley Startup. This strategic move could enable it to channel payments received from its customers from its wearable fitness devices.
Incidentally, coins expertise lies in making devices that use near-field-technology (NFC) chips. In turn, NFC allows users to make contact-less payments through devices, which include smartphones.
NFC technology allows two devices, when placed in close proximity to each other, to exchange data with one another. There is a growing trend, especially in the high-end smartphone market to use these chips to make purchases, thus essentially equating smartphones with wallets.
Fitbit has disclosed that it has no current plans of introducing the technology into its products this year, but it could do so in the near future.
NFC technology has featured prominently in high-end smartphones from Apple, Google and Samsung for popular services such as Google Wallet, Apple Pay and Samsung Pay. The adoption of NFC technology by these tech giants has created the much needed traction among retailers.
Its rival, Jawbone, has already tied up with American Express Co, to let users pay through its UP4 fitness brand for its premium services.
Fitbit has said that its deal, completed on May 12, with Coin includes intellectual property as well as key personnel. The terms of the deal were however not disclosed.
As per the company’s spokeswoman, the deal would not materially affect the company.
With the news of this deal hitting the market, Fitbit’s shares rose by 1.6% to $14.40 in early trading on Wednesday.
Categories: Entrepreneurship, HR & Organization, Strategy
manageria.biz 
Leave a comment