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.”

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Source: Why Australia’s answer to PayPal is trading up tenfold