Discover Financial Services' digital exchange will provide tokenized payment credentials for wearable of Internet of Things devices powered through FitPay.
The network services agreement between Discover and FitPay Inc., a unit of NXT-ID, allows Discover cardholders to make contactless payment transactions through their FitPay devices operating through the FitPay Payment Platform.
Users of other partner cards that are part of the alliance would also be able to initiate payments through wearables, the companies said in a Monday press release.
"With the advancements of mobile technology, the way customers interact with merchants is being re-imagined with an eye toward more secure and convenient methods of payment," Diane Offereins, Discover's president of payment services, said in the release. "This integration with FitPay is one more way in which Discover is continuing to enhance the payment experience and provide more options for our cardholders on how and where they pay."
FitPay's wallet and digital payment platform, which will integrate with the tokenization platform, enables manufacturers of IoT and wearable devices to add contactless payment capabilities to their products. Consumers pay for goods and services at Near Field Communication-enabled point-of-sale terminals with a tap.
Tokenization technology replaces cardholders' account information with a unique digital identifier, or payment token, to transact secure contactless payments.
"Consumers should have options in how they pay, and this agreement makes cutting-edge payment devices available to Discover cardholders," Michael Orlando, COO of NXT-ID and president of FitPay Inc., said in the release.
Discover is a "unique and important part" of the mobile pay ecosystem, and FitPay is pleased to be able to make the network available to devices on the FitPay Platform, Orlando added.
Manufacturers of 15 IoT and wearable devices are currently integrating with the FitPay Payment Platform.