(MENAFN - ABN Newswire) Melbourne, Oct 28, 2016 AEST (ABN Newswire) - iSignthis Ltd (iSignthis or the Company) (ASX:ISX) is pleased to provide the following business update and Appendix 4C for the quarter ended 30th September 2016.
- An increase in customer receipts with $0.249m received in the quarter. The receipts are a combination of integration fees, upfront licensing fees and transactional processing charges from integrated customers.
- Successfully completed direct customer agreements for delivery of the iSignthis digital KYC service to:
-- XM.Com - a significant international investment firm providing foreign exchange broking services. Founded in 2009 it has grown its customer base to over 500,000. Revenue from the processing of transactions for XM is expected in the December quarter, as outlined in the business update below.
-- FXNet.com - a global Forex broker offering trading services to clients in over 100 countries.
-- Ixaris - a global payments platform providing merchant customers with payment solutions. Processing of transactions for Ixaris is underway and will begin to contribute to group revenue in the December quarter.
- Executed an agreement to provide full card acquiring and settlement services in Australia and New Zealand by way of an agreement with National Australia Bank (ASX:NAB) - further expanding the services being offered to Merchant customers. Integration with NAB should be completed in the December quarter.
The recent quarter has involved further business progression with focus on a number of key areas;
The iSignthis sales team continues to build a strong pipeline of opportunities.
Operating as Australia's only ASX listed RegTech (Regulatory Technology) company coupled with FinTech payment processing capability, enables us to offer an end to end payment services solution combined with the unique selling proposition of automating AML/CTF KYC and transaction monitoring to provide a basis for regulatory compliance.
The Company has grown its technical and operating resources in Australia and Cyprus during the past quarter. The integration and deployment of services to direct merchant customers has been a priority and we continue to progress towards building scale through customers such as XM.com, Ixaris, FXNet.com and Coinify.
The central integrations during the past quarter have revolved around XM.com and Ixaris. Due to the size and transactional volume of XM.com the integration is more involved and complex than with smaller direct merchants. XM.com uses a large number of acquiring institutions and payment gateways in order to process a large volume of transactions and to mitigate any potential downtime and risk. We have therefore completed direct connections with payment gateways Eximbay, Meikopay, Payment Bills Service and acquirers including Powercash21 & Barclays. A further six gateways are required to be integrated prior to the XM service being fully live. Progressive services are likely to be commenced over coming weeks based upon connection completions.
These connections establish a commercial framework and technical network that may be reused by iSignthis in order to process transactions on behalf of future clients. Unlike '.apps', the payment industry is heavily influenced by legacy systems, that date back in some cases to the 1990's and early 2000's. Given the critical nature of FinTech, and the regulatory and certification requirements, development work is over a longer cycle than 'apps'.
iSignthis has also recently announced the integration to Ixaris and in short course expects to 'go live', whereby iSignthis assists Ixaris in identifying merchant stakeholders. These stakeholders include Ultimate Beneficial Owners and directors, such that Ixaris meet various compliance requirements with regards to their merchant clients. This creates a further product and revenue stream for iSignthis as we continue to expand the network of opportunities. We move another step forward in becoming a 'one stop shop' for AML regulated business' in their requirements to i) receive and process payments, ii) manage risk and fraud, iii) comply with AML/CTF regulations in being able to identify their customers and iv) monitor and report transactions.
The announcement of the payment facilitation agreement with National Australia Bank (ASX:NAB) was a major achievement for an early stage Company, as it allows paydentity to be linked to a major bank.
The integration to NAB allows the Company to act as a payment facilitator, whereby we;
- share with NAB the merchant fee charged to merchants, where merchant fee is calculated as a % of each sale/ transaction on credit and debit cards
- process BPAY batch payments to credit and debit cards for a fixed fee, charged to the merchant
- process direct debits (as a service), for a fixed fee, charged to the merchant
- paydentity is available to NAB merchants processed thorough ISXPay
The integration with NAB has progressed well and we expect to begin transaction testing in the coming weeks, and is on target to be finalised by end of December to an operational state that can support merchant transaction processing.
A number of prospective customers have already been identified for the payment facilitation service, and we are confident that we will be writing strong business for this service during 2017.
Shareholders should be aware of the difficulty and effort required to contract with major financial institutions in order to gain access (as an impediment to competition). The Company is proud of its achievement to have overcome the difficulties usually associated with forming a partnership between a startup and a major financial institution, in addition to the skill and time then required to integrate a complex service such as iSignthis to a major bank such as the NAB.
Testing and certification is rigorous and takes several weeks as a minimum, due to the criticality of the service to consumers and regulatory overlays.
The above software development work being undertaken by the company enables us to further expand the product range of services available to our merchant customers and we are actively promoting our patented services via Paydentity along with traditional payment services of a payment gateway and acquirer.
iSignthis continues to focus on delivering multiple services into its existing service customers and securing additional business development opportunities.
The Company's outlook for the coming quarter includes:
- Finalising Core integrations and further progressing platform development.
Completing current customer integrations and moving to a progressive 'go live' position with all existing customers.
- Commencing sales cycle for Paydentity in conjunction with the NAB payment facilitation service.
- Finalising negotiations already underway.
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About iSignthis Ltd
iSignthis Ltd (ASX:ISX) is the global leader in dynamic, digital AML/CTF KYC identity proofing. Our Paydentity solution incorporates real time electronic verification to converge remote payment authentication and KYC identification. This delivers automated customer on-boarding with a global reach of any of the world's 3.5Bn financially included persons, no matter where they are located. iSignthis' unique solutions protect online customers whilst assisting merchants with CNP liability shift and providing operators with 100% confidence.