Fingerprint Cards Licenses Iris Recognition Tech to Smart Eye in SEK 50M Automotive Deal

Fingerprint Cards AB has entered into a licensing agreement with Smart Eye AB for its iris recognition technology, in a deal valued at up to SEK 50 million. The partnership aims to integrate advanced biometric capabilities into automotive and enterprise applications, building on Fingerprint Cards’ fourth-generation iris recognition platform that introduced low-cost, wide field-of-view capabilities.

The agreement includes an initial fixed license fee of SEK 23 million, payable in Smart Eye shares. Additional milestone payments of up to SEK 17 million will be distributed across two key achievements: Smart Eye’s first design win incorporating the iris recognition technology, and the first Start of Production (SOP).

The deal structure also includes potential royalty payments of up to SEK 10 million, which Smart Eye can pay in either shares or cash, based on their automotive industry sales. As part of the reciprocal arrangement, Smart Eye will grant Fingerprints a license to market Smart Eye’s multi-modal solution outside the automotive sector, with revenue sharing determined case by case.

“Fingerprints have an incredible heritage in biometrics, with world-leading engineers to offer the highest efficacy authentication in the widest environmental conditions,” said Martin Krantz, CEO of Smart Eye. “Having rigorously reviewed the market, they were simply the best iris authentication technology around, and a fantastic team to partner with.” Smart Eye has been expanding its biometric capabilities in recent years, as evidenced by its acquisition of emotion AI specialist iMotions.

The partnership emerges amid increasing adoption of biometric authentication in automotive applications, particularly for in-car payment systems. Major automakers like Mercedes-Benz have already launched biometric fuel payment systems, indicating growing market demand for secure in-vehicle authentication. This trend aligns with upcoming European regulations requiring all new vehicles to incorporate Driver Monitoring Systems (DMS) by 2026 to detect driver distraction.

Adam Philpott, CEO of Fingerprint Cards, described the agreement as “a pivotal step in our journey to expand Fingerprints’ biometric offerings,” noting Smart Eye’s established position in automotive in-cabin sensing technology. The partnership follows Fingerprint Cards’ broader strategy of diversifying its biometric solutions, including the recent launch of its AllKey system for physical and logical access control.

Sources: Fingerprint Cards AB, Reportify, MarkLines

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January 7, 2025 – by Cass Kennedy