- Fintech favourite iSignthis’ stocks are back on the rise after announcing a European patent for their Payment Services Directive 2 (PSD2)
- The announcement coincides with the EU’s PSD2 directive to provide Strong Customer Authentication (SCA) when companies provide customers with bank cards and access to account services
- The patent means iSignthis can independently comply with the European Banking Authority’s (EBA) Regulatory Technical Standard (RTS) when it comes to customer authentication
iSignthis’ stocks are back on the rise after announcing a European patent for the Payment Services Directive 2 (PSD2).
The dual-listed company has been notified of the European Patent Office’s (EPO) intention to grant a patent and help verify transactions across all 38 EPO states, including EU member states and Turkey.
The announcement coincides with the EU’s PSD2 directive to provide Strong Customer Authentication (SCA) when companies provide customers with bank cards and access to account services.
The directive, implemented on September 14, aims to create a safer and more innovative payments system with higher levels of authentication within the EU.
Granting of the patent means iSignthis can independently comply with the European Banking Authority’s (EBA) Regulatory Technical Standard (RTS) when it comes to customer authentication.
iSignthis’ electronic money subsidiary, iSignthis eMoney (ISEMEE), will be impacted most by the patent’s issue. ISEMEE is expected to streamline the customer onboarding experience and provide authentication checks to satisfy both SCA and Know Your Customer (KYC) requirements.
On top of that, ISEMEE can keep customer authentication checks on file to reduce the number of inspections in the future if a customer is already on board.
News of the patent comes after a turbulent week for the company, who was the subject of a scrutinous governance report issued by Ownership Matters. The report called the company’s high Gross Processing Transaction Volume (GPTV) into question after the release of an operational update last Monday.
The scrutiny and subsequent ASX query sent iSignthis’ stocks into freefall, triggering a decrease of nearly 50 per cent in the company’s market cap.
iSignthis responded to the allegations in a statement to the ASX, saying the GPTV figures aligned with information already in the public domain. The company also refuted claims that its executive structure was ‘opaque.’
iSignthis’ stock value continues to steadily rise following the patent news, currently up 10.5 per cent at A$1.13 each.
The company’s market cap has also increased slightly, A$1.114 billion compared to A$1.016 billion at Friday’s market close.