$ISX iSignthis Tier 1 Processing to Visa and Mastercard Networks

Company Name: iSignthis

Announcement Date: 27/11/2018
Announcement Category: Contract/Partnership, Product launch/update
Announcement Content:

• ISXPay Tier 1 ‘production live’ in the EU, via own Visa and Mastercard principal licenses
• $880m annualised GPTV volume to be incrementally ramped from January through March ‘19
• New & existing merchants being onboarded to platform from December onwards
• MSF% target of >100Bps on contracted book of >$880m GPTV
• EBIT Guidance for CY/FY2019 restated unchanged at ~AUD$10.7m

Melbourne, 27th November 2018 – Australian Securities Exchange and Frankfurt Stock Exchange cross listed iSignthis Ltd (ASX: ISX | FRA: TA8) (the “Company”), is pleased to announce that it has completed its Tier 1 integration to access both Visa and Mastercard (“card schemes”) directly, per its previously announced timetable on 30th August, and will be imminently using its own Principal Member Bank Institution Number (BIN) for processing of card transactions within the EU/EEA.

Visa and Mastercard, are as of tomorrow, both switched to Tier 1 ‘production live’ by the card schemes, allowing direct processing by ISXPay under its own BIN, along with previously announced JCB. The combination of these three schemes alone represents a viable offering as an independent, standalone acquirer, and with our APMs and SEPA capability, will far exceed many EU payment companies’ capabilities.
The upcoming addition of our other principal licensed payment channels, including Diners, Discover, China UnionPay and Amex, 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 has previously announced that it contracted more than AUD$880m of merchant GPTV, to be processed during FY/CY2019 and beyond. ISXPay will shortly start to ramp merchant volumes up, without the restrictions it previously faced working with other payment service provider partners. The Company will however, maintain strategic partnerships with other payment service providers, in order to offer specialty services.

The Company expects that Gross Processed Turnover Volume (GPTV) will gradually be loaded to ISXPay over January and be at full GPTV monthly throughput by March 2019. The $880m annual GPTV will be subject to merchant and seasonal fluctuations during the course of the year, with some months performing stronger than others. GPTV volume ramping is non-linear accelerating post March 2019.

The Company is restating its EBIT guidance of ~AUD$10.7m for CY/FY2019.

The target MSF% of >100bps is sensitive to volume pricing discounts, but is also subject to increases for lower volumes or specialty merchants.
The “Merchant Services Fee (MSF)% x monthly processed GPTV” will be booked as gross profit each month, without any cashflow lag, as MSF is deducted at daily or weekly settlement to merchant. The Costs of Goods line will soon largely exclude the underlying percentage cost that has been payable to partner payment services providers during previous quarters for use of their networks.

Card Scheme Interchange fees will be collected and booked as revenue, and are payable to the card schemes by ISXPay per the terms of its Principal licenses, and do not contribute to gross profit. The overwhelming majority of ISXPay’s merchants fall under MCC6211 (CFD/FX Brokers & Market makers), many of whom also utilise the Paydentity™ platform to meet their compliance requirements.
Consistent with our strategy of supporting the FX sector, ISXPay offers merchants a large range of acceptance and settlement currencies, including AUD, GBP, CAD, CHF, CZK, DKK, EUR, HKD, JPY, NZD, PLN, RUB, SGD, SEK, USD and ZAR, with acceptance in a further 150 odd currencies, settling in EUR.

Announcement URL: https://www.asx.com.au/asxpdf/20181127/pdf/440njq6qb4vvyc.pdf
About iSignthis:

Australian Securities and Frankfurt Stock Exchange listed iSignthis Ltd (ASX : ISX / FRA : TA8) is the only neobank focussed on making business banking simpler. We are the global leader in remote identity verification, payment authentication and payment processing to meet AML/CFT requirements. iSignthis provides an end-to-end on-boarding service for merchants, with unified deposit taking, IBAN accounts, payments, card acquiring and identity service via our Paydentity and ISXPay® solutions.

By converging payments and identity, iSignthis delivers regulatory compliance to an enhanced customer due diligence standard. We offer global reach to any of the world’s 4.2Bn ‘bank verified’ card or account holders, that can be remotely on-boarded to regulated merchants in as little as 3 to 5 minutes.

iSignthis is the trusted back office solution for regulated entities, allowing our customers to stay ahead of the regulatory curve and focus on growing their core business.

We are a principal of Visa, Mastercard, JCB, ChinaUnionPay and AMEX.

Go to Company Profile for: iSignthis

Announcement Contact: [email protected]