Dual-listed regulation technology (RegTech) provider iSignthis (ASX: ISX | FRA: TA8) has published its interim operating update for its Australian payment processing and settlement operations.
iSignthis reports that over the last four months, figures indicate that its Gross Process Transaction Value (GPTV) will exceed $100 million, beating previous expectations of $75 million, based on 3 of the 7 merchants contracted so far.
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 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.
The RegTech provider expects its MSF margin rate to decline from around 1.28% to 1.15% as it diversifies its operations across various unrelated merchant market sectors whilst also increasing its transactions volumes.
Also, iSignthis forecasts flat transactional fees charged at a weighted average of 24 cents per transaction is in accordance with previous estimates.
In an update to shareholders, iSignthis says that it is focusing on selected merchants because they “provide scale and a higher gross margin than the anticipated average.”
The tweaked focus also allows iSignthis to establish its technology and operations, before moving to conclude further integrations, process higher volumes, and finalising new sales opportunities.
The future for iSignthis
According to iSignthis, further merchants are expected to go live within the next few weeks including the full Paydentity suite. This initial flow of clients is expected to grow organically over time and provide a recurring addition to the company’s balance sheet.
For anti-money laundering regulated merchants, the use of Paydentity could lead to higher Know Your Customer conversions together with a significant increase in extraterritorial reach, which in turn will likely lead to a corresponding increase in GPTV being processed by ISXPay, according to iSignthis.
In other important news, iSignthis has told shareholders it will no longer report new client acquisitions on a case-by-case basis in order to preserve merchant confidentiality and to better streamline aggregated results based on actual sector performance.
Upon announcement of today’s news, iSignthis shares remained unchanged at $0.16 per share, thereby valuing the company at $107 million by market capitalisation.