The team is instead focused on developing an NFC payment system for use in upcoming devices.
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Fitbit just announced that it has acquired the wearable payments technology of Silicon Valley fintech startup Coin. Coin made a name for itself by producing a “smart” credit card, one capable of storing payment information from multiple cards and letting users choose how they wanted to call upon those funds at the point of purchase. Therefore, to ensure its long term relevance, it is crucial for Fitbit to make its device multipurpose, and what better way to start off than by introducing payment technology.
The transaction was completed on May 12. The company announced this morning that it’s picked up assets from mobile payment solution Coin. An NFC chip operates as one part of a wireless link.
Fitbit said the deal with Coin, which debuted on crowdfunding platform Kickstarter in 2013, includes key personnel and intellectual property.
“The inclusion of [Coin’s] payment technology into our offerings will further our strategy of making Fitbit products an indispensable part of people’s lives”, Fitbit CEO James Park said in a statement.
Rival Jawbone has already tied up with American Express Co to let users pay through its premium UP4 fitness band.
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This acquisition is indicative of Fitbit’s commitment to innovation, which centers on making connected health and fitness devices that are motivating, smart, and stylish. Fitbit recently launched the Alta fitness tracker and the Blaze smartwatch a few months ago, and while the company could launch another product or two before the year is up, it likely won’t have time to thoughtfully integrate mobile payments into any of them. Apple’s entry into NFC gave the industry a much needed boost.
