RegTech specialist iSignthis (ASX : ISX) has achieved more than $69 million per annum in book value of transactions to be processed and settled by its ISXPay system.
The company said this follows the contracting of further merchants to ISXPay payment processing and payment authentication service.
The company said the more than $69m per annum of transactions to be processed and settled by ISXPay directly to the merchant’s bank account, will provide an average net margin of 0.85% for provision of card acquiring / payment facilitation & settlement services is applicable across the total contracted value of $69m. It said that transactional fees charged are at a weighted average of 23c/Transaction.
ISXPay services will typically commence around six to eight weeks from execution of merchant contract, and contracts are for a minimum of two years and evergreen unless terminated. Further merchants are expected to go live within the next two weeks, and will be announced on a merchant by merchant basis.
According to iSignthis, the new Contracts are expected to deliver an annualised gross profit in excess of $734,000, (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 company said it has executed an agreement to facilitate Poli Payments on behalf of its merchants. The company will act as the processor from the customer’s bank account and provide funds settlement to the company’s merchants. The agreement allows for up to 50bps net margin, and is expected to go live within four to six weeks. Several merchants have requested access to the new service, which will be incorporated into the Paydentity platform.
The company previously announced in August 2016 that it had signed an agreement with the National Australia Bank, 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.