Regulatory technology company iSignthis Ltd (ASX: ISX) has declared that it has completed its previously-announced Tier 1 integration that allows direct access to both Visa and Mastercard payments in the European Union (EU).
The news means iSignthis will be able to process Visa and Mastercard card transactions for some of the world’s leading retail trading companies in Europe with greater ease, and importantly, paves the way for greater commercial traction for its suite of regulatory technology (RegTech) products offered to businesses.
iSignthis provides an end-to-end onboarding service for merchants, with a unified payment and identity service, dubbed Paydentity and ISXPay leading its suite of products.
The company’s overarching plan is to become the global RegTech leader in remote identity verification, payment authentication with deposit-taking, transactional banking and payment processing capabilities being offered to a growing number of companies – especially small and medium-sized businesses.
Future payments expansion
Looking forward, iSignthis plans to add further payment channels including Diners, Discover, China UnionPay and Amex that “will further augment ISXPay’s offering and revenues from mid CY/FY2019, and positions the company with a globally enviable choice of payment channels and capabilities,” the company said.
iSignthis has previously announced that it contracted more than A$880 million of merchant gross processed turnover volume (GPTV), to be processed in the forthcoming year with ISXPay expected to ramp up merchant volumes – without the restrictions it previously faced working with other payment service providers.
As it stands, the RegTech provider said it expects that GPTV will gradually be loaded to ISXPay over the course of January 2018 and forecast to be at full GPTV monthly throughput by March 2019.
Furthermore, iSignthis has restated its earnings before interest and taxes (EBIT) guidance, which now stands at A$10.7 million for next year.
To provide further insight into its regulatory-focused business model, iSignthis has said that the “overwhelming majority” of ISXPay’s customers are CFD/FX brokers and market makers – financial companies that offer retail trading services to clients across the world.
These firms are particularly attracted to Paydentity given their need to conduct identity checks and repeated deposits (often at very short notice) while complying with strict compliance requirements set forth by regulators such as the Financial Conduct Authority (FCA) and ASIC.
Paydentity currently allows deposits to be made in over 150 different currencies and allowing clients to settle their European-bound transactions in Euros.
Earlier this month, iSignthis signed an eCommerce acquiring business agreement with Diners Club International allowing its Australian and European-based subsidiaries to acquire Diners Club and Discover Network branded cards directly, as an online Tier 1 acquirer.
The agreement allows iSignthis to acquire all types of online and eCommerce merchants, including quasi-cash and gambling merchants.
“The addition of the Diners Club and Discover Network to our card acquiring services means that we now have agreements with all the major, global card schemes. We are excited to be working with Diners and Discover and extending card the reach of their card acquiring services into the European Union, Australia and other territories, as we grow,” said John Karantzis, CEO of iSignthis.
Asian market status
In addition to its European market progress, iSignthis is also trying to pick up merchant clients in Asia.
Just last month, iSignthis announced that its Australian subsidiary iSignthis eMoney entered into a “card not present/online agreement” with UnionPay International (UPI), to act as a card acquirer of China UnionPay (CUP) issued cards.
The two companies have struck a deal to collaborate in their mutual plans of developing a smoother payments process, including technical integration and certification before offering the service to merchants.
The deal allows iSignthis eMoney to contract, process, acquire and settle directly with merchants using its ISXPay service.
This morning’s news helped iSignthis shares to gain almost 4%, to trade at $0.145 per share.