Phoenix Technology Holdings has signed a letter of intent agreement with a major credit card issuer and electronic payment services company in the US.

The letter of intent includes licensing, implementation and utilization of the Smart Chip Technologies patented loyalty technology with a target pilot and production deployment in 2008. The name of the company will be disclosed upon the final contract signing between the two parties.

Phoenix and the company will work together to customize Loyalty Central, which is a customer retention solution, including loyalty, pre-paid stored value, and gift cards. This will enable the company to take advantage of click-and-mortar, real-time programs running on their existing cards and point-of-sale systems, including bar code, magnetic stripe, RFID, or smart cards, and a range of mobile devices.

Miki Radivojsa, president of Phoenix Technology Holdings, said: "Through our strategic partnership with Loyalty Access Solutions(LAS), we were able to secure this agreement. LAS was instrumental in assisting both parties in moving this agreement forward to signature."