The iSignthis Ltd (ASX: ISX) share price has risen 11% in early reaction to the fintech’s patent win.
iSignthis is listed on the ASX and Frankfurt Stock Exchange. It provides remote identity verification and payment authentication combined with e-money, transactional banking, IBAN issue and payment processing capability. Its products and businesses are iSignthis Paydentity, ISXPay, UAB Baltic Banking Service and Probanx Information Systems.
iSignthis’ Patent Win
iSignthis announced that its subsidiary, ISX IP, has been notified by the European Patent Office’s (EPO) intention to grant the patent about ‘Methods and Systems for Verifying Transactions’.
The patent will be granted across all 38 EPO member states, including all EU member states and Turkey.
This expected patent grant comes at the same time as the EU’s directive to require strong customer authentication (SCA) for cards and access to account services.
Many national regulators have recently extended the effective date for cards SCA by up to 18 months due to the difficulty faced by the payments industry in implementing an effective SCA process.
Today’s patent announcement is important because it provides a way for iSignthis to achieve compliance with the European Banking Authority’s Regulatory Technical Standard.
Consumers purchasing electronic money from iSignthis eMoney will have several ways to authenticate their payment, which should allow for an easy service that will also meet customer due diligence or ‘Know Your Customer’ (KYC) requirements.
iSignthis said its patented standalone technology will help consumer experience a significant reduction in friction for customers with SCA and KYC performed in a single step with less online click interactions, which the company thinks will mean faster onboarding to its electronic money service.
Does This Make iSignthis A Buy?
I’m really not sure what the financial impact of this will be, although investors are clearly excited by the news.
There’s a lot of investor interest around iSignthis right now, with its share price being very volatile. So it might be better to buy growth shares which aren’t under so much scrutiny, like the businesses in the free report below.
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