Operational Update
Melbourne, Mar 20, 2020 AEST (ABN Newswire) - iSignthis Ltd (
ASX:ISX) (TA8:FRA) provide the following update on the impact of COVID-19 on its operations.
Direct Impact : Our operations generally remain unaffected directly. The Company's existing pandemic procedures and business continuity plans were put into effect last week, ensuring that some of our staff are working remotely in our areas of operation including Australia, Cyprus, Lithuania, Netherlands, and the United Kingdom.
The Company is Payment Card Industry (PCI) Data Security Standard (DSS) certified to operate remotely 100% of the time, with all staff having access to laptops and virtual private networks at all times, including when they are in any of our offices. As such, working remotely presents no technical issues, but does present challenges with regards to broadband bandwidth in working remotely (due mainly to the limitations in telecommunication networks at such a time), reliance upon remote communications and he challenges of social isolation.
Indirect Impact : March 2020 revenues have slowed appreciably, with processing volumes in key EU merchants having declined in GPTV. We are reviewing the situation in March and likely beyond, with January and February having been (unaudited) EBIT positive. The Australian dollar's decline against the EURO will benefit the Company this quarter.
We also note that responses from payment schemes to what are usually routine technical, commercial or settlement matters, are now taking several days to resolve, rather than minutes, hours or overnight.
The Company is also expecting audit results in early April from Visa Inc with regards to access to product, which may be subject to delays due to COVID-19.
Customers are also slower to engage with the Company, usually due to staff unavailability, and are thus slower to respond to offers, or to onboard.
The Company is planning for up to eight weeks of remote operations and the potential for reduced revenues. The Company has sufficient cash reserves to continue with its operations and planned strategic activities well beyond the eight weeks of anticipated impact by COVID-19.
The Company notes that this is an unprecedented situation with individual governments independently taking measures that are often inconsistent with each other and difficult to anticipate. It is therefore not possible to make accurate predictions on operations going forward with a large level of uncertainty that we cannot control or anticipate. We have sought to take the best measures we can under the circumstances and based on the official advice of each jurisdiction in which we operate.
About iSignthis Ltd
iSignthis Ltd (ASX:ISX) (FRA:TA8) is a hybrid monetary financial institution and also a 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, electronic money 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 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, PRZ24 and others.
Probanx Solutions Ltd, a wholly owned subsidiary of iSignthis Ltd, provides API based access to CORE Banking solutions, SEPA Core, SEPA Instant and SEPA business scheme, for neobanks, banks, credit unions and emoney institutions, and provides a bridge to the Eurosystem's Central Bank of Lithuania's CENTROLink service.
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