Cross-listed payments provider iSignthis (ASX: ISX) secured a deal to become a payments aggregator for one of the world’s largest credit card providers, American Express (AMEX).
Through its wholly-owned subsidiary iSignthis eMoney (AU), iSignthis signed a payment aggregator agreement with the US giant, currently the world’s largest card issuer by purchase volume.
The complimentary deal means iSignthis will purchase AMEX processing at a pre-agreed wholesale price called the merchant services fee rate. iSignthis will is then able to on-sell payments processing services to merchants under its usual merchant services fee structure.
One of the first and most primary functions expected to be brought online is the addition of AMEX as a principal member of an existing pool of card schemes including Mastercard Worldwide, JCB International and Visa.
Delving deeper into processing payments
iSignthis currently has payments agreements in place that allow the company to offer acquiring, processing and settlement services across the European Economic Area and Australia.
Introducing AMEX into its existing pool is highly complementary for iSignthis and adds a further layer of functionality for consumers to take advantage of when using ISXPay, the proprietary platform developed and implemented by iSignthis.
As it stands, ISXPay provides a full range of gateway, risk management, risk avoidance and processing services for card transactions, as well as alternative payment methods. With the addition of AMEX, iSignthis bolsters its coverage and is therefore able to offer its services to a greater number of customers.
Last month, iSignthis onboarded 4 major merchants onto its ISXPay platform and raised its book value by over A$310 million. The company hopes to add further value to its overarching business model by adding credit card issuers and additional merchants in the foreseeable future.
Adding payments to identities
Its other core service is ‘Paydentity’, a means of converging payments with identities, in order to incorporate payment authentication with enhanced due diligence.
The service can greatly reduce the amount of time taken for a customer to have their details confirmed by the merchant whilst satisfying all the legislated security requirements such as Know Your Customer (KYC), Anti Money Laundering (AML) and Countering the Financing of Terrorism (CFT).
According to iSignthis, integration will commence on AMEX “immediately”, with a “3-4 month integration and certification window” required before the finished service can be made available to merchants.
In the meantime, until full integration is completed, iSignthis says that ISXPay is able to process AMEX transactions for a flat fee but will not receive any MSF contribution until full integration is completed later this year.