The iSignthis Ltd (ASX: ISX) share price has fallen 4% today, but it's still up 146% this year, what happened to cause the drop?
The 'RegTech' business, which provides remote identity verification and payment authentication made an announcement to the ASX regarding its Australian card processing facilities.
iSignthis announced that its Australian subsidiaries have entered into more than 10 payment facilitation agreements for the processing of cards with merchants who are holders of Australian Financial Service Licenses (AFSLs).
The company described the signed-up merchants as established businesses that operate within the target processing gross processed turnover value (GPTV) range and have accepted terms consistent with previous announcements. The services are expected to commence this week. These arrangements are separate to iSignthis' APRA ADI application.
iSignthis said that its initial focus in Australia has been on AFSL regulated merchants and market makers including CFD, foreign exchange, binary and equity traders where its 'Paydentity' and multicurrency operations provide a competitive advantage. The company reminded investors that the technology is patented.
At this stage iSignthis can't say how rapidly GPTV will grow in Australia, it will take a couple of months to see the data. But it will report the size of its Australian book and actual GPTV in the coming reporting periods, and it will be presented separately to its European GPTV.
The company will continue to seek out other merchants, as well as other categories, that it can service.
It's hard for me to say how good of an opportunity iSignthis is at this stage, but it appears to be heading in a very positive direction, despite the negative share price reaction today.
