Blackberry Ltd retained a 3-year contract with the Ontario-based mobile payments software specialist group, EnStream LP in order to safeguard millions of their clients’ mobile payments. The merge between Blackberry Ltd and Enstream LP comes in place after quite some time in the making. It appears that both companies were negotiating an agreement for years before finally completing all of their fine tuning and details last week. Meanwhile early last year other business affiliates of the wireless guru quickly signed contracts with EnStream LP with little or no delay. Prior to Blackberry Ltd closing its deal, The Desjardins Group, a global financial group also located in Canada with assets well over $200 million had already closed a very similar deal with EnStream LP.
Blackberry Ltd corporate office is located in Canada, yet the company is a universal smartphone service provider to millions of clients in Canada, North America, Europe, Asia-Pacific, and Latin America. EnStream LP is a multiparty venture company with Bell Mobility, Roger Communications, Inc., and TELUS Corporation, all based in Ontario, Canada as well. So now that this multi-fusion agreement between Blackberry Ltd and EnStream LP is in place; the arrangement will bring some much-needed safer mobile payment software solutions to all of the millions of Blackberry’s smartphone users worldwide. Sources say Blackberry’s board members spent years stalling EnStream representatives while avidly searching for the right mobile payments solutions company that would capacitate all of their private entities coast to coast. Finally, Blackberry board members realized that connecting to EnStream’s Secure Element Manager (SEM) digital system and NFC (near field communication) satellite would be the best solution for securing its clients financial information via mobile payments.
Customers who use these handsets made be Blackberry Ltd now have a better feature option on their phones. Before closing this deal, customers were taking a huge risk by making a payment on their mobile devices. To make monthly payment customers would enter their personal financial information through unsecured wireless signals. Blackberry has been in existence for 30 years and has a total 450 million clients. With a large amass of growth in customers in the last 10 years and the daily increase of smartphone users constantly going up Blackberry Ltd really stepped up to the plate leaving no room for individual identity theft, undetected wireless sharing, crafty hackers, or just plain old invasive intruders to get a sneak preview of their clients information being entered during the process of a payment transaction with their handset.
Blackberry Ltd certainly gains the most benefit from this deal simply because the company’s board members can now rest assure its main priority is achieved and the consumers are safe, but also another very compelling factor is that Blackberry can definitely expect a more prominent income stream over the next 3 years now that the mobile payments systems are safer to use. Chief Executive Officer of EnStream Almas Ledas was very happy to partner up with Blackberry Ltd, and is very confident that the company will see the consistency that it expects as a result of securing the deal last Thursday. Ladas estimates almost 38% of Blackberry’s carriers use the mobile payments system to pay their monthly bill. With the deal in effect, Blackberry Ltd can officially guarantee safer transactions between their customers and their customers bank account holders. According to Derek Colfer, Director of Mobile Visa, since most of the millions of Blackberry Ltd customers are connected with major banks Royal Bank of Canada (RBC), TD Bank Group, Desjardins, and CIBC, closing this deal was a very strategic move and will protect the credibility of its reputation against these very reputable financial institutions.
Blackberry Ltd stock being lowered earlier this year came as a minor blow to many. Board members are positive that shareholders will see their normal returns increase. With 108 million of its 450 million clients already using mobile payments systems this number is expected to increase. It is so much easier to make a mobile payment, saving time and money in the process. Depending on the overall success of the deal with EnStream LP, the 3 year agreement could become a permanent fixture.
Some of Blackberry Ltd other in-house revenues are expected to rise as well. Recently John Chen, Chief Executive Officer of Blackberry Ltd, announced the début of the Z3 model Blackberry phone which is available in Indonesia and soon will be available worldwide. The company’s most sold phone is the Blackberry Classic; it comes in many versions and model variations. In November the new Blackberry Enterprise Server 12 will be available. Both of the new phones coming to the retail market will have full touch screen capabilities.
Since closing the deal with EnStream LP and assuring its millions of users are safe, CEO of Blackberry Ltd, John Chen, expects to see an increase of mobile payments and in the sales of Blackberry phones in the next 3 years. The older model flip phones will no longer be upgraded and they will eventually be discontinued all together. Chen anticipates more consumers of the flip model will upgrade to the original Blackberry over the touchscreen. They are the perfect starter phones because most of them have the tradition keypad to input data and comes with all of the luxuries of using a smartphone.
By Kimakra Nealy