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ISX, ISIGNTHIS LTD
nipper
post Posted: Sep 10 2019, 09:58 AM
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Why Australia's answer to PayPal is trading up tenfold

Payments company iSignthis is emerging as one of the small cap success stories of the year, with the value of its stock leaping more than tenfold in the eight months since January.

The share price of the business, which has created a patented payments network with strong fraud and identity checks that can be used by institutions that need to comply with anti-money laundering (AML) regulations, has increased from only 15¢ in January to $1.55, pushing its market capitalisation from $161 million to $1.7 billion.

The not-so-small cap stock, which is dual listed on the Frankfurt Stock Exchange, was pushed up another 13 per cent on Monday afternoon, after revealing that its annualised monthly gross processed turnover volume (the amount of money forecasted to be flowing through its network annually) had jumped 160 per cent since June to $1.1 billion.
Chief executive and co-founder John Karantzis told The Australian Financial Review the company's payment network was similar in many ways to PayPal except that it targets different sectors of the market.

"We have gone a bit deeper into payments technology and agreements than PayPal, as we connect into central banks in Europe, the SEPA [single euro payments area] payment scheme, and we are a principal member institution of Visa, Mastercard, Diners, Discover, JCB, and ChinaUnionPay in Australia and the EU," he said.

"Where PayPal targets retail, we target AML regulated sector businesses, which offer financial services such as securities, foreign exchange, contract for differences or high value or cross-border goods, digital services and banking services."

The company's rapid share price increase has been driven by constant news since it began operating in earnest in March. It has posted regular growth updates and had quarterly investor briefings and in August it also secured a deal with the local subsidiary of Visa which meant it could act as a principal merchant and process their payments in Australia and the Asia Pacific.

It's even more astounding given that the company, which also offers electronic money deposit taking, listed in 2015 at a price of 3¢ and in the six months to June 30 it only banked $7.5 million in revenue.

Like PayPal, iSignthis is also an issuer of electronic money in the European Union and in Australia it is seeking to be granted the second purchased payment facility authorised deposit-taking institution (ADI) licence, with the first being given by APRA to PayPal.

iSignthis has also applied for access to the Reserve Bank's payment infrastructure and when this is granted the company will be able to offer Australians BSB account style access, as it does in Europe with IBAN-based bank accounts. In contrast, PayPal utilises a person's email or mobile for reference to an account. Currently iSignthis has 260 merchants in its "paydentity" ecosytem, making up a decent chunk of the financial services businesses industry.

Mr Karantzis said the payments platform took three years to build and tackles the issues retailers faced of high numbers of chargebacks for fraud.

"Knowing a person's identity reduces the opportunity for fraud, but it also allows us to perform Know Your Customer (KYC) [checks], which is the key to onboarding customers online and meeting AML regulations," he said.

"Paydentity brings in the KYC, KYCC [a deeper understanding of the customer] and the various payment methods, and allows us to onboard a customer within 3-4 minutes of that customer being referred to us by one of our merchants in our network," he said. "The network effect then kicks in, as more business customers want access to the already KYC’d retail customers to whom we’ve issued electronic money, and the retail customers want fast access to the businesses on our ecosystem."

In the six months to June 30 the company substantially reduced its losses, narrowing its net loss by 75 per cent to $700,000. In the second quarter of the calendar year it also achieved positive cash flow of $9.9 million.

Mr Karantzis said investors had driven the company's price up based on its strong revenue trajectory and margins.

"I think our valuation, given our growth prospects and the fact that we achieved cashflow positive in four months, warrants a much better valuation than businesses that burn cash for years under the guise of promoting growth," he said. "We are aiming to drive both growth and value, and take an ‘old school’ view that any product line we launch must be profitable at the gross profit level."

Mr Karantzis said the company was also steering clear of areas dominated by the big four banks.
"We also don’t need a lot of capital, so unlike neobanks that are a cash sink as they need capital to offer loans, we have started our neobanking services by not getting into the loans and mortgages area," he said. "We see the big four being dominant in that area, and we offer services where the Big 4 typically won't, can't or have already exited due to either brand issues, AML concerns or lack of technology to deliver."



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: terrine  
 
terrine
post Posted: Sep 9 2019, 09:42 AM
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Should be a good day
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Said 'Thanks' for this post: nipper  
 
terrine
post Posted: Aug 29 2019, 10:12 AM
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starting to get a lot of attention
180 trades on open this morning
now market cap of $1.3 billion

 
blacksheep
post Posted: Aug 9 2019, 01:58 PM
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SP up 11.79% @ $1.09 on this news
QUOTE
Visa Inc Australian Principal Membership
Melbourne, 8th August 2019: iSignthis Ltd (ASX: ISX|FRA: TA8) (“The Company”) is pleased to announce
that it has entered into an Australian Principal Member licensing agreement with the Asia Pacific
Singapore based regional subsidiary of Visa Inc (NYSE: V).

The agreement allows the Company to act as a merchant’s card acquiring institution, and process card
not present (online/remote) payments and make settlements on behalf of the merchant from cards
issued anywhere globally by other Visa Principal or Associate member institutions. The Company
generates revenue from its contracted merchants by charging a percentage fee known as the Merchant
Discount Rate (MDR) on the sale amount processed on behalf of the merchant.

The overall value of the card processing market in Australia was $748,110,632,702 in 20171 across all
card schemes, with the majority of that value being in retail point of sale as card present transactions.
Visa is a global payments technology company that enables fast, secure and reliable electronic
payments, with more than 3.3Bn cards worldwide across 200 countries and territories, and capacity to
process more than 65,000 transaction messages per second.

Visa’s mission is to connect the world through the most innovative, reliable and secure digital payment
network that enables individuals, businesses and economies to thrive. In addition to the card issuance
and acceptance network, Visa has developed a number of innovations to support new ways to pay.

Principal membership of major card schemes is a complex process, with the Reserve Bank of Australia
(RBA) regulating card payments2 and access by institutions3 to the major card schemes, including Visa.
Each card scheme must then be licensed individually, which in this case included Visa’s assessment
criteria4 requiring the Company to demonstrate the following:

• Fraud and security controls.
• Corporate and ethics governance.
• Sound business practices.
• (Relevant) Business strategy.
• Business continuity.
• Information consistency and security.
• Information conciliation.
• Services availability

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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
terrine
post Posted: Aug 9 2019, 01:43 PM
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well we are halfway there...
to being a 10 bagger that is
woohoo

 
terrine
post Posted: Jul 30 2019, 09:33 AM
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In Reply To: blacksheep's post @ Jul 24 2019, 02:26 PM

asx quartlerly and investor update this morning
cashflow positive - $1.35m
cash receipts up 329% over last quarter
buyers are in the starting gate...


 


blacksheep
post Posted: Jul 24 2019, 02:26 PM
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In Reply To: terrine's post @ Jul 24 2019, 02:20 PM

Article doesn't really say much more about ISX - other than they are LONG.

Most of the article is dedicated to stocks they are selling or short - offloading those stocks which they feel are now more than fully valued and shorting those overvalued for various reasons

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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
terrine
post Posted: Jul 24 2019, 02:20 PM
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Posts: 578
Thanks: 10


In Reply To: blacksheep's post @ Jul 24 2019, 02:13 PM

Unfortunately cant read much of that article, but why wouldnt you lock in profits, its been a stellar trade

 
blacksheep
post Posted: Jul 24 2019, 02:13 PM
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Extract - Why the best performing hedge fund is selling - LHC is LONG ISX

QUOTE
Other long positions include ASX-listed payments company iSignthis, and high flying tech stock Altium.

https://www.afr.com/business/banking-and-fi...20190723-p529t2
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: May 18 2019, 05:20 PM
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Posts: 6,043
Thanks: 2167


💥💪



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 


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