Dual-listed regulation technology (RegTech) provider iSignthis (ASX: ISX | FRA: TA8) has announced it has contracted four major EU-based settlement merchants, with an estimated annual Gross Processing Turnover Value (GPTV) book value in excess of €200 million (A$310 million).
iSignthis provides remote identity verification, payment authentication and payment processing and facilitates an end-to-end onboarding service for merchants, with a unified payment and identity service made possible by its proprietary brands Paydentity and ISXPay.
Just last month, iSignthis completed the technical integration of its ISXPay platform with Worldline, a large-cap European payment service provider that’s able to process billions of electronic transactions each year.
Paydentity combines payment authentication with enhanced due diligence and customer knowledge to verify a person’s identity and link it to an electronic payment.
According to iSignthis, this ability satisfies multiple regulations including anti-money laundering and counters the financing of terrorism.
Providing companies with the ability to conduct a range of ID and security checks on large numbers of customers allows for a much greater rate of commercial activity, greatly reducing the amount of resources needed to conduct routine checks that can be done automatically via Payidentity and ISXPay.
Without revealing the identity of its latest commercial customers, iSginthis said that its merchant customers are “all within the derivatives, CFD and securities merchant category.”
iSignthis must still go through an extensive customer due diligence process in accordance with EU regulations but expects the deals to be formally completed in the near term, saying that, “the various agreements are deemed material, with a resulting positive contribution on revenue over the term of each of the evergreen agreements.”
Integration on the horizon
Two of the four newly-signed merchants are now in the final stages of integration with revenue contribution to “commence within the March quarter, and then scaling more fully throughout the June quarter.”
According to a market update, iSignthis says its total contracted GTPV book value across all its subsidiaries is now in excess of A$400 million per year.
Following today’s announcement of its multimillion multi-merchant contract, iSignthis expects to integrate its technology in the near-term and says that, “once integrated, the newly contracted merchants will build on the existing revenue base currently generated from payment processing, KYC and payment settlement of existing customers and merchants,” with further information to be provided as part of the company’s half-year financial report to be published later this week on Wednesday 28 February 2018.