BIO-key Expands African Footprint with Altron Arrow Partnership, Eyes Passwordless Future

Johannesburg, South Africa – November 10, 2025 – BIO-key International, Inc. (NASDAQ: BKYI) today announced a strategic partnership with Altron Arrow, a leading African distributor of technology solutions, to expand its reach across the continent. The collaboration will showcase BIO-key’s advanced biometric identity and access management (IAM) solutions at the Africa Tech Festival, addressing a rapidly growing demand for robust security and user-friendly authentication methods.

While the announcement details a distribution agreement and joint showcase, deeper analysis reveals a strategic move by BIO-key to capitalize on a unique intersection of challenges and opportunities within the African digital landscape. Rising rates of cybercrime, coupled with a burgeoning need for financial inclusion and simplified digital access, are creating a fertile ground for innovative IAM solutions like those offered by BIO-key.

Addressing a Continent’s Security Needs

Africa has seen a significant surge in cybercrime in recent years, with impersonation fraud increasing by a staggering 356% between April 2022 and April 2023. This alarming trend, combined with a global rise in sophisticated AI-driven fraud – including deepfakes and credential stuffing – is driving demand for more secure authentication methods. Traditional password-based systems are increasingly vulnerable, prompting businesses and governments to seek alternatives.

“The reliance on passwords is becoming increasingly unsustainable,” explained one cybersecurity consultant working with financial institutions in South Africa. “The risk of compromise is simply too high. We're actively looking at biometric solutions, and the potential for passwordless authentication, to bolster our defenses.”

BIO-key’s approach centers on its Identity-Bound Biometrics (IBB) technology, which dynamically links a user’s biometric data to their credentials, making it significantly harder for attackers to gain unauthorized access. The company’s PortalGuard IAM solution provides a comprehensive platform for managing identities and controlling access to sensitive data.

Altron Arrow: A Key to Unlocking the African Market

BIO-key’s partnership with Altron Arrow is critical to its African expansion strategy. Altron Arrow, a division of the prominent South African technology company Altron, boasts an extensive distribution network and a deep understanding of the local market dynamics.

“Altron Arrow’s established presence and relationships across the continent will be invaluable in reaching potential customers and partners,” stated an industry analyst specializing in African technology markets. “They’ve built a reputation for delivering reliable and effective technology solutions, which aligns well with BIO-key’s offerings.”

The partnership allows BIO-key to tap into Altron Arrow’s existing infrastructure and customer base, significantly reducing the time and resources required to establish a foothold in the region. It also provides access to local expertise, ensuring that the solutions are tailored to the specific needs of the African market.

The Rise of Passwordless Authentication in Africa

Beyond enhanced security, passwordless authentication is gaining traction in Africa due to its potential to promote digital inclusion. Eliminating passwords simplifies the user experience, making it easier for individuals with varying levels of digital literacy to access online services. This is particularly important in a continent where access to technology and internet connectivity remains uneven.

“We’re seeing a growing demand for solutions that are both secure and user-friendly,” stated a representative from a microfinance institution in Nigeria. “Passwordless authentication can help us reach a wider audience and empower more people to participate in the digital economy.”

Solutions that function effectively on lower-end smartphones and in areas with intermittent internet connectivity are particularly valuable. Companies like Smile ID are leading the way in adapting technologies to the unique challenges of the African landscape. BIO-key is positioning itself to benefit from this trend by offering flexible and scalable solutions that can be deployed across a wide range of devices and networks.

Financial Performance and Competitive Landscape

BIO-key, while maintaining a strong balance sheet with more cash than debt, currently holds a relatively small market share compared to industry giants like Microsoft, IBM, and Okta. Its recent quarterly revenue has experienced a decline of 20.9%, with revenues of $1.7M (Q2 2025), $1.6M (Q1 2025), $1.5M (Q4 2024), and $2.1M (Q3 2024). However, the company’s focus on biometric authentication and its strategic partnerships are expected to drive growth in the long term.

Within the biometric space, BIO-key faces competition from companies like B-Secur, Fortior Solutions, Clear, and IN Groupe. The company’s key differentiator lies in its ability to offer a comprehensive IAM platform that integrates seamlessly with existing systems and provides a high level of security and user convenience.

“The African market is ripe for disruption,” stated an analyst specializing in cybersecurity investments. “Companies that can offer innovative and cost-effective IAM solutions will be well-positioned to succeed.”

Looking Ahead

The partnership between BIO-key and Altron Arrow represents a significant step towards expanding access to secure and user-friendly authentication methods in Africa. By leveraging Altron Arrow’s distribution network and BIO-key’s advanced biometric technology, the two companies are poised to capitalize on the growing demand for robust IAM solutions in the region. As Africa continues its digital transformation, the need for secure and inclusive authentication methods will only continue to grow, creating a significant opportunity for companies like BIO-key to make a lasting impact.