By: Tomas Ronolski - AllPennyStocks.com News

Tuesday, October 21, 2014

Near Field Communications, or NFC, has been around for years. It’s a simple, low-power technology growing in popularity for securely identifying a person and information, such as bank accounts or medical information, thanks in part to Apple launching its proprietary payment system called iPay on Monday. Apple can herald security with its product, but only time will truly validate that claim, as a proclamation of security didn’t seem to stop hackers from breaching databases at major corporations like Target and JPMorgan, amongst many others. Let’s not forget that even the U.S. Department of Defense was hacked in 2011. According to a recent PwC report, public awareness of mobile wallet applications is relatively high, yet use is still relatively low as loss of privacy and loss of security around financial transactions are key areas of concern. Touching on the report, luxury techcessories company iWallet Corporation (OTCQB:IWAL) said in a letter to potential shareholders on Tuesday that fewer than half of people are comfortable using a mobile wallet, citing many reasons why, including potential for their smartphone to become a greater target of theft.

Founded by Steve Cabouli in 2009, iWallet was a private California company before going public via a merger with Queensridge Mining Resources in July. iWallet is focused on its robust patent and trademark portfolio in the growing biometric market and combining the latest security features with luxury appointments. The flagship product of the company is the eponymous brand of biometric locking wallet to protect a person’s cash, credit cards and personal information.

The company isn’t turning a smartphone into a payment system, it has developed a type of high tech vault for physically putting cash, credit cards, etc. that replaces a traditional wallet. Mobile payments may have topped $235 billion in 2013, but iWallet hasn’t lost sight of good, old fashion cash and credit card transactions, which dwarfed mobile payments with about $15 trillion in transactions last year.

Using biometric technology, the aluminum or carbon fiber device can only be opened by the owners fingerprint. Further, the iWallet features RFID (Radio Frequency Identification) blocking, protecting the user from hackers using scanners from swiping personal information. The wallet also has GPS tracking capabilities and has a speaker for audio feedback. The speaker plays a role when the wallet is tethered via Bluetooth to a supported smart device, which facilitates a proximity alarm that goes off when the devices are separated by about 15 feet.

iWallet is licensed by Apple Inc. as an official Accessory Developer, meaning that iWallet can utilize the Apple logo for its special wallet.

In September, iWallet named retail veteran Jack Chadsey as chief executive officer as the company aligns for a re-launch of the iWallet, which it says generated about $245,000 in sales in the past 18 months. Chadsey has a successful history in the retail space, holding senior executive positions at Kohl’s (NYSE:KSS) and Sunglass Hut International, where as CEO and President, he led the company’s IPO and international expansion.

The iWallet is branded as an upscale product making a fashion statement while protecting assets, and the price matches with the classic carbon fiber wallet stickered at $560 and the classic aluminum version priced at $470. This puts the iWallet pricing in line with classic wallets by Gucci, Louis Vuitton and Cartier, although it does believe the price of the aluminum version can be lowered once economies of scale are reached. The company sells the iWallet online through its own website, as well as through Neiman Marcus in North America, Harrods in England, NeedItWantItGadgets in New Zealand and to Centurion (black card) American Express members in Canada.

According to SEC filings, iWallet plans to launch a new product, appropriately name iPassport, for protecting international passport booklets, a “women’s iWallet” and a biometric reader-enabled padlock. The company also intends to find a high profile celebrity to be the face for iWallet and expand its sales channels. Negotiations are reported to be ongoing with Hammacher Schlemmer and Skymall, amongst others. iWallet is also working on private branding deals with Porsche Design, Ducatti, Bucci, Bugatti and Montblanc.

As so many companies set their sights on mobile payments, it’s interesting seeing a company coming out with new technologies to protect actual paper money and plastic credit cards. Now it’s just a matter of time to see the results of the discussions with all the high-end brands to see if iWallet can catch on in a broad, yet niche, market and if sales can start to see an upswing going forward.

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