NXT-ID Inc (NASDAQ: NXTD) is having an overwhelmingly strong day in the market today, and for good reason. In a press release issued early this morning, the company announced that its subsidiary has entered into a Network Service Agreement with Discover Financial Services. Of course, this led to excitement among investors, sending the stock on a run for the top. Today, we’ll talk about the agreement, what we’re seeing from the stock, and what we’ll be watching for ahead.
NXTD Gains On Agreement With Discover
As mentioned above, NXT-ID is having an overwhelmingly strong day in the market today after announcing that its wholly-owned subsidiary, FitPay, Inc., has entered into an agreement with Discover. According to the release, the Network Services Agreement is designed to allow devices that are integrated with the FitPay Payment PlatformTM to provision tokenized payment credentials through Discover® Digital Exchange, also known as DDX.
Under the terms of the agreement, Discover cardholders, as well as partner card holders, will have the ability to make contactless payment transactions at retail locations with wearable or Internet of Things devices. NXTD said that the devices, in particular, will be devices that include payment capabilities that are powered by FitPay. In a statement, Michael Orlando, COO at NXTD and President at FitPay, Inc., had the following to offer:
Consumers should have options in how they pay, and this agreement makes cutting-edge payment devices available to Discover cardholders… Making payments easy, secure and frictionless requires building an extensive ecosystem. Discover is a unique and important part of that ecosystem, and we are very pleased to be able to make the network available to devices on the FitPay Platform.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. After all, under this agreement, FitPay enabled devices are likely to become more and more popular, which is a big win for NXT-ID. So, it’s no surprise to see that the stock is making a dramatic climb in the market today. At the moment (9:45), NXTD is trading at $3.06 per share after a gain of $0.88 per share (40.33%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NXTD. In particular, we’re interested in following the story surrounding the company’s agreement with Discover, as this could prove to be a big game changer moving forward. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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