Further Australian Card Acquiring/Processing Contracts Executed
- Annual Card Transactions in excess of $62m to be processed, cleared and settled to merchants bank accounts by ISXPay
- Net Margin in excess of 80 basis points
- Anticipated annualised Gross Profit in excess of $660,000 for card acquiring related aspect of agreements.
Card Acquiring: Processing & Settlement Services
The total card acquiring 'book' value is now in excess of $62m per annum of transactions to be processed and settled by ISXPay directly to the merchant's bank account. An average net margin of 0.80% for provision of card acquiring / payment facilitation & settlement services is applicable across the total contracted value of $62m.
Transactional fees charged are at a weighted average of 23c/Tx.
ISXPay services will typically commence circa 6-8 weeks from execution of merchant contract, and contracts are for a minimum of 2 years and evergreen unless terminated. Further merchants are expected to go live next week, and will be announced on a merchant by merchant basis.
The Contracts are expected to deliver an annualised gross profit in excess of $660,000, (once all merchants are live and transacting), across the two key revenue silos of 'processing' and 'settlement' identified in Investor Update dated 31st July 2017. The revenue silo of 'identity and payment instrument verification' cannot be estimated at this point in time against these customers, as aggregated customer metrics are not as yet available.
The Company announced on the 8th August 2016 an agreement with the National Australia Bank (ASX:NAB), whereby daily cashflow for card settlement is provided by the NAB at a wholesale rate to the Company. This allows the Company to pursue merchants of all sizes, as the NAB agreement ensures that the Company has adequate daily cashflow to effect settlement.
About iSignthis Ltd
Australian Securities and Frankfurt Stock Exchange listed iSignthis Ltd (ASX:ISX) (FRA:TA8) is the global RegTech leader in remote identity verification, payment authentication with deposit taking, transactional banking and payment processing capability. iSignthis provides an end-to-end on-boarding service for merchants, with a unified payment and identity service via our Paydentity(TM) and ISXPay(R) solutions.
By converging payments and identity, iSignthis delivers regulatory compliance to an enhanced customer due diligence standard, offering global reach to any of the world's 4.2Bn 'bank verified' card or account holders, that can be remotely on-boarded to meet the Customer Due Diligence requirements of AML regulated merchants in as little as 3 to 5 minutes. Paydentity(TM) has now onboarded and verified more than 1.5m persons to an AML KYC standard.
iSignthis Paydentity(TM) service is the trusted back office solution for regulated entities, allowing merchants to stay ahead of the regulatory curve, and focus on growing their core business. iSignthis' subsidiary, iSignthis eMoney Ltd, trades as ISXPay(R), and is an EEA authorised eMoney Monetary Financial Institution, offering card acquiring in the EEA, and Australia.
ISXPay(R) is a principal member of Visa Inc, Mastercard Inc, Diners, Discover, (China) Union Pay International and JCB International, an American Express aggregator, and provides merchants with access to payments via alternative methods including SEPA, Poli Payments, Sofort, Trustly, WeChat, AliPay and others.
UAB Baltic Banking Service, a wholly owned subsidiary of iSignthis Ltd, provides API based access to SEPA Core, SEPA Instant and SEPA business scheme, for neobanks, banks, credit unions and emoney institutions, and provides a bridge to the Central Bank of Lithuania's CENTROLink service.
Probanx Information Systems Ltd (Probanx(R)), a wholly owned subsidiary of iSignthis Ltd, is an international banking software company which has been serving the banking industry since the year 2000 by developing comprehensive banking software solutions to financial institutions around the globe. Probanx offers web-based banking solutions using the latest technology and international standard business rules. Our customers are located on five continents and supported from our technical centres in Europe and Australia.
iSignthis' Probanx delivers core banking software, including a fully comprehensive and versatile banking solution for retail, corporate and private banks, emoney and payment institutions, offering capabilities that up until now were affordable only by large commercial banks.
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National Australia Bank Limited