Security solutions provider Diversinet Corp. (Nasdaq: DVNT) has expanded its strategic licensing agreement with Research In Motion Ltd. (Nasdaq: RIMM), accelerating its presence in the burgeoning wireless e-commerce arena.
Under the terms of the agreement, announced at the Wireless Internet 99 show, Diversinet’s Passport technology will be incorporated into Research In Motion (RIM) wireless handhelds, enabling secure e-commerce transactions, including banking, shopping and stock trading.
RIM products are sold through numerous companies that currently offer wireless devices, including AT&T, Bell South Wireless Data, PageNet, SkyTel and Microsoft Exchange value-added resellers (VARs).
“The agreement with RIM expands Diversinet’s distribution channel for providing wireless e-commerce security solutions over a variety of devices,” commented Nagy Moustafa, Diversinet president and CEO. “RIM is one of the most innovative wireless data companies and its wireless Internet, intranet and e-commerce solutions are sparking the deployment of time-sensitive wireless data services.”
RIM designs, manufacturers and markets wireless data products and services that are supported by an active developer community and Independent Software Vendors (ISVs). The company’s product lines include the RIM Inter@active Pager 950, the 850 Wireless Handheld and the BlackBerry wireless e-mail solutions.
Providing the Passport
Passport software, Diversinet’s star product offering and the crux of the RIM deal, utilizes encryption along with digital certificates, permissions and signatures to ensure the integrity of wireless Web transactions and communications.
The technology is designed for wireless devices and other bandwidth-constrained products including smart cards. “Without an enhanced level of security, none of the exciting wirelesse-commerce applications will succeed because users won’t trust the safety of their transactions,” commented Moustafa.
“Diversinet’s software provides trust through our patented technology to ensure that buyers and sellers are authenticated,” Moustafa added. “The software also provides an ‘audit trail’ that’s vital if the transaction is ever disputed.”
Earlier this fall, Diversinet acquired Ubiq Communications, Inc., picking up the company’s interactive wireless messaging application systems for development purposes. The acquisition fueled Diversinet’s drive to enhance its presence in the market for end-to-end security solutions for content providers and aggregators, device manufacturers, software developers, systems integrators and wireless operators.
Street Warriors Go Wireless?
The RIM and Diversinet partnership has also been extended to collaborate with 724 Solutions, a company with a mission to enable user access to trusted banking and investment services. The three companies will work together to create turnkey wireless packages for banking and trading.
724 provides end-to-end software systems for financial institutions looking to seize the opportunity presented by the market for wireless e-commerce. “Diversinet and RIM enable 724 Solutions to integrate highly secure communications into our product, and provides a good platform for wireless e-commerce applications, ” commented Greg Wolfond, 724 founder and CEO.