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iSignthis wird zusätzlich an der Frankfurter
Wertpapierbörse (FSE: TA8) gelistet
Frankfurt, 20. Juni 2017 - Das an der Australian Securities Exchange gelistete
Unternehmen iSignthis Ltd (ASX) freut sich bekannt zu geben, dass es ab heute
zusätzlich an der Frankfurter Börse (FSE) unter dem Kürzel "TA8" gelistet ist.
Anleger können iSignthis-Wertpapiere direkt an der Australian Securities
Exchange oder der Frankfurter Börse erwerben.
John Karantzis, CEO, sagt: "
		
Wir freuen uns, die Notierung unserer Aktien an der Frankfurter
Wertpapierbörse bekannt zu geben. Als Regtech dass vorwiegend auf den
europäischen Markt fokussiert, ist das zusätzliche Listing an der Frankfurter
Börse ein logischer Schritt.Unsere europäische Kundenbasis wächst rasant durch
die Umsetzung unserer Paydentity-Strategie, und Investoren in Deutschland und
Europa zeigen zunehmend Interesse an iSignthis.
Das Listing steht im Einklang mit unserem europäischen Fokus und bietet
iSignthis den Zugang zu weiteren neuen potenziellen Investoren, die dazu
beitragen werden, unsere Aktionärsbasis zu erweitern, die Liquidität zu erhöhen
und iSignthis einem breiteren Publikum in ganz Europa vorzustellen.
Als europäisches Finanzinstitut mit einer E-Geld Lizenz sehen wir die Frankfurt
Stock Exchange als sehr bedeutsamen nächsten Schritt unserer Strategie um
Transparenz zu schaffen, die Wahrnehmung im europäischen Markt zu stärken
und eine Investment Möglichkeit für europäische Privatanlegerund
Institutionelle Investoren. Wir beginnen den Handel heute unter dem FSE Kürzel
TA8; und wie bisher an der ASX als ISX "
Im Rahmen des zusätzlichen Listings wurden kein zusätzliches Kapital oder
Wertpapiere ausgegeben. ISignthis geht davon aus, dass dass Frankfurter Listing
die Handelsliquidität erhöht und die Investition in das Unternehmen von
institutionellen und Privatanlegern in Deutschland und in Europa vereinfacht
wird.
About iSignthis Ltd (ASX : ISX) & (FSE : TA8)
Australian Securities Exchange (ASX : ISX) and Frankfurt Stock Exchange (FSE : TA8) listed iSignthis
Ltd is the global leader in remote identity verification, payment authentication and payment
processing to meet AML/CFT requirements. iSignthis provides an end-to-end on-boarding service
for merchants, with a unified payment and identity service via our Paydentity™ and ISXPay®
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 3.5Bn ‘bank verified’
card or account holders, that can be remotely on-boarded to regulated merchants in as little as 3
to 5 minutes.
iSignthis Paydentity 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, trading as ISXPay®, is an EEA authorised eMoney Institution, offering card acquiring in
the EEA, Australia and New Zealand.
Über iSignthis Ltd (ASX : ISX) & (FSE : TA8)
iSignthis wird an der australischen (ASX : ISX) und der Frankfurter (FSE : TA8) Wertpapierbörse
gehandelt. Das Unternehmen gilt als weltweit führerender Anbieter für ortsunabhängige
Identitätsverifizierung, Payment Authentifizierung und Processing gemäss AML/CFT
Anforderungen. iSignthis bietet einen End-to-End Onboarding Dienst für Unternehmen, mit einem
einheitlichen Payment- und Identitätsverifizierungsdienst basierend auf seinen Paydentity und
ISXPay Lösungen.
Durch die Verschmelzung von Payments und Identitäten ermöglicht iSignthis die Einhaltung
gesetzlicher Vorschriften für einen verbesserten KYC Prozess und bietet globale Reichweite zu
weltweit 3,5 Milliarden 'Bank verifizierter' Karten oder Kontoinhabern, die innerhalb von 3 bis 5
Minuten ortsunabhängig von regulierten Händlern erfasst werden können.
iSignthis Paydentity Service ist die vertrauensvolle Back-Office-Lösung für regulierte Unternehmen
und Händler, die es ermöglicht mit dem regulatorischen Wandel und Anforderungen Schritt zu
halten und sich somit auf das Wachstum ihres Kerngeschäfts fokussieren können.
iSignthis, firmierend als ISXPay®, ist ein in Europa autorisiertes E-Geld-Institut und Kreditkarten
Acquirer in Europa, Australien.
Für mehr Informationen besuchen Sie: https://www.isignthis.com/
Read more about the company at our website www.isignthis.com.
For more information, please contact:
iSignthis Ltd (ASX : ISX) Media: contact@isignthis.com
Investor Relations, Chris Northwood, Activ8Capital,
+61458 809 177, cnorthwood@activ8capital.com.au
iSignthis – Frankfurt Stock
Exchange Cross Listing FSE : TA8
& ASX : ISX
Investor presentation - June 2017
N J (John) Karantzis
B.E. LL.M M.Ent FIEAust CPEng Adj
Managing Director, iSignthis Ltd (ASX : ISX), (FSE : TA8)
2
iSignthis Limited (ASX: ISX) & (FSE : TA8)
Capital structure - ASX
Ordinary shares - quoted on ASX 626,651,772
Other shares – staff and escrow 6,947,442
Performance shares # 336,666,667
Total Shares – incl Perf/shrs 970,265,881
Share price (19th June 2017) A$0.14
Market capitalisation – quoted & staff/escrow (A$m)A$88.7
Market capitalisation - Incl Perf/Escrow (A$m) A$135.8
Australia’s only ASX listed RegTech and Eurosystem authorised Monetary Financial Institution.
iSignthis has a patented identity verification technology, linked with payment processing and payment facilitation capability,
converging payments and identity into our Paydentity™ service.
With an increasing European customer focus, we have now cross listed on the Frankfurt Stock Exchange (FSE).
# Performance Shares
Class A : 112.2m shares : annualized $5m run-rate in a 6 month period
Class B : 112.2m shares : annualized $7.5m run-rate in a 6 month
period
Class C : 112.2m shares : annualized $10m run-rate in a 6 month
period
Note: Each class of performance shares is subject to a 3 financial year timeframe
from listing on the ASX for those milestones to be achieved in order to vest (June 30,
2018)
Options - unlisted
Unlisted advisor incentive options 33,000,000
- various expiry from July 2017, 2018 and 2019
- various strike price from $0.38, $0.50 and $0.62
Agenda
1. What do we do?
2. Regulatory evolution is driving change
3. Our technology advantage
4. What have we achieved so far?
5. What are we executing on currently?
3
4
1. What do we do?
iSignthis leads in RegTech, focus on payment and identity verification
• Payment gateway
• Card vault
• Anti Fraud Engine
• PSD2 Strong
Customer
Authentication
• KYC Platform (enhanced
due diligence)
• Transaction monitoring
analytics
• AML risk engines
• Instant EDD customer
onboarding
• Card acquiring
• Alternative Payment
Methods
• IBAN Accounts /
Deposits
• Card Issuing
RegTechFinTech Monetary Financial
Services
Global, Scalable Cloud Based Service
5
iSignthis Ltd automates AML/CTF Enhanced Due Diligence KYC & transaction monitoring via its payments and
identity processing platform (Paydentity™) for AML regulated sector businesses including:
• Financial Institutions,
• banks, lending, crowdfunding, pension funds,
• securities / equities,
• FX, CFD, binaries, and futures traders,
• gaming, wagering, betting, casino’s,
• money services businesses,
• payment service providers,
• insurance providers,
• real estate,
• digital currency platforms,
• eWallets, Fintech,
• other AML/Patriot Obligated businesses, and
• Ourselves, as an EU regulated Monetary Financial
Institution!
1. What do we do?
iSignthis automates AML/CTF KYC and transaction processing
321
1. What do we do?
ISX has three core revenue streams
iSignthis collects revenue in three main streams
Identify & Verify the
Customer (KYC)
€ - flat fee per KYC verification
AML/CTF function
Processing of
Payments
€ - flat fee per transaction
Payment processing
function
Settlement of
Payments
% share of transaction value
Acquiring/settlement
6
Verify Process Settle
Eg: Potential income from each revenue stream
€2 to €20 per KYC
transaction depending on
individual client
agreements and volumes
€0.06 to €0.30 per
transaction processed,
depending on client
agreements and volumes
0.20% to 1.25% of the total
transaction value charged
on the customer
credit/debit card
Verify Process Settle
7
2. Regulatory evolution is driving change
4AMLD and PSD2 are requiring a more rigorous approach
4AMLD (“Fourth Directive”)
• European regulators under 4AMLD Enhanced Due Diligence (EDD) for remote identity
verification.
• AML sector business, including Financial institutions, FX and gaming, are required to
undertake ongoing monitoring of transactions for evidence of money laundering (AML) or
funding of terrorist activities (CTM)
• Identification of customers using Electronic methods and verifications for eKYC is permitted
under various EU regulations.
The iSignthis “Paydentity” service is the only dynamic, online, realtime solution that
meets 4AMLD requirements whilst also processing payments. Our platform provides our
Customers a basis for compliance.
8
2. Regulatory evolution is driving change
4AMLD and PSD2 are requiring a more rigorous approach
PSD2 & transactional payment processing authentication
• All online payments required to undergo Strong Customer Authentication (SCA)
using a method of Two Factor Authentication (2FA) to be linked to the card’s owner.
• The use of 2FA without proving a persons identity first, is known as Strong
Authentication (SA) – this is commonly used by some tech companies and is not
compliant under the current PSD2 regulations
The iSignthis services meet the requirements of the PSD2 today allowing merchant customers
immediate compliance and protection against credit card fraud and charge back costs.
PSD2 will provide the added benefit of liability shift, which previously had
only been allowed under card scheme rules using 3D Secure.
Our Strong Customer Authentication is a by-product of our 4AMLD solution
There are four commercial and compliant means to perform a Know Your Customer (KYC), all of
which rely on bank or government sources.
Paydentity™ incorporates bank issued credit and debit cards, as they are not only the leading
online payment source, but also the largest single source of KYC data accessible globally.
2. Regulatory evolution is driving change
The method of establishing identity has evolved
9
49%
42%
9%
Unbanked Banked CRA Database
10
• 49% of the world is not banked
* McKinsey
• Corresponding Low ARPU
• Manual processing with no
digital/electronic solution
• Not targeted by ISX• 51% of the world is banked *McKinsey
• 9.6Bn regulated Credit/Debit Cards on
Issue (source of EDD) *Nilsen
• 51% Banked includes 9% CRA Database
coverage
• Corresponding High ARPU
• iSignthis provides instant access to
these customers
Unbanked – 49%
Traditional CRA’s and KYC databrokers
compete for limited market size.
CRA Database - 9% coverage
Banked – 51% coverage
3. Our technology advantage
ISX can identify & verify 51% of the worlds population
iSignthis leverages the “KYC” that banks perform by dynamically linking the payment instrument to the
person making the payment – providing verification of the “banked” persons in the world
3. Our technology advantage
Patented technology uses a split payment method to verify identity
The iSignthis Paydentity™ solution as shown by the graphic below achieves the goals set out under
4AMLD and PSD2 by dynamically linking the payment device to the customers bank account.
Start
Eg. Customer makes
a €100 transaction
Transaction is split into
two amounts, creating
a dynamic secret
Eg
Customer retrieves
the dynamic secret
from their online bank
The two amounts
making up the dynamic
secret are entered into
the iSignthis portal
Paydentity
Core achieved
(Payment Instrument Verified)
Eg
11
4. What we have achieved?
The building blocks have been established and transaction volumes are growing
• Patented Paydentity™ process, providing barriers to entry
• Listed on the Australian Securities Exchange (ASX)
• Built and delivered Paydentity™ from a concept to a working model, including back
end connectivity to numerous banks and financial institutions.
• Paydentity™ certified PCI DSS Level 1 in the cloud.
• National Australia Bank (ASX : NAB) Payment Facilitation agreement
• Contracted multiple AML sector businesses across various sectors and jurisdictions,
proving Paydentity™ business and compliance case.
• EEA Authorised Monetary Financial Institution (MFI)
• ISO27001 Certified and EC GDPR ready
• Recurring Paydentity™ transactions commenced on commercial scale
• Transactional revenues growing steadily as more customers go live
12
5. What are we executing on currently?
Live Paydentity™ transactions growing and additional customers are driving
revenue
13
Customer Transacting
Coinify Now
XM.com Now
Ixaris Now
eMerchantPay Now
Pepperstone Late 2017 / Early 2018
Borgun Imminent
Note: Does not include one off integration testing transactions.
# 4QFY17 does not include all transaction volumes for the month of June.
14
5. What are we executing on currently?
Google analytics “session” data proves Paydentity’s global reach & effectiveness
• Circa ~1.0m transactions processed to
date
• Average session duration shows
Paydentity™ can identify, verify and
process transactions within 5 ½ minutes
• Bounce rate of <2.5% suggests low
customer friction when utilising
Paydentity™ to onboard customers. i.e.
Customers are comfortable to carry on
through the KYC/payment process +98.5%
of the time.
• Session data map (right) shows the true,
actual global reach of the iSignthis
Paydentity™ technology platform to date
Actual Session data – last 3 months
15
Appendices
16
Note : Paypal Inc and iSignthis Ltd (held by ISX IP Ltd) both have multiple granted patents in numerous jurisdictions claiming monopoly over their
core intellectual property.
Approach
Examples (not exhaustive)
Includes Europe and US
Examples (not exhaustive)
Includes Europe and US
1 or more Test / Dummy Transactions
/
Changing merchant name
US7430537,CA2412184A1, EP1356438A2,
EP1356438B1, EP2209095A1, US8296204,
US8370259, US8417637, US8515871,
US20020004772, US20080312998,
US20120054103, US20120054104,
US20120109823, US20130332364,
WO2002005224A2, WO2002005224A3
Dynamic Changing of Statement Descriptor
Random Alphanumerics US7734542,
CA2728618A1, EP2304679A1,
EP2304679A4, US8001050, US8452709,
US20090319426, US20100241567,
US20110302085, US20130268441,
WO2010008770A1, WO2010008770A8
Use of Equation, Anagram, Word to Match to
Picture
US6032863 , US8131617, US7588181,
US8805738, US7765153
Splitting a Transaction (Sales) Value
/
More than two splits
/
As an advanced electronic signature
US8620810, CA2791752A1, CN102812480A,
EP2553642A1, US20120323791,
US20140222677, AU2012261779,
AU2011235612 , AU2010100533,
ZA2012/06455, SG201206344-2,
WO2011120098A1
Two companies own ~100% of the IP around payment transaction
verification via dynamic Knowledge Based Authentication (KBA)
17
Cysec & UK JMLSG Requirements – Two required
Verified
payment
Verified
address
Document
uploads
Verified
fixed phone
Verified
bank sign-in
Electronic
verification
Notarised
documents
&/or &/or &/or &/or
O
r
Satisfying Regulations
requires
One of Doc Uploads or
Electronic Verification AND
one of the second line. We
choose payment
verification.
By verifying payment, we
confirm:
a) Source of funds
b) that funding is available
c) Enhanced CDD of
customer, instantly &
onboarding customer
18
• EU ID Harmonization
• Advanced e-signature
• EDD <> AES
• Jan 2018
• One Leg Out
• Risk Based Threshold
• eWallet impact
• Jan 2018
• Strong Customer
Authentication (SCA)
• Card Liability Shift
• XS2A
• Jun 2017
• Knowledge based
assessment (KBA)
• Customer D/D (CDD)
• Enhanced D/D (EDD)
• Transaction Monitoring
4AMLD PSD2
eIDAS
EBA/ECB
SecuRePay
& RTS
GDPR
Privacy
* Complex EU landscape
shown by way of
example.
The AML/CTF & payments regulations landscape is what we solve
19
iSignthis Services – one API for Paydentity and ISXPay
Customer Merchant
EDD KYCPIV
Card
Tokenisation
Payment Gateway Risk Engine Strong Customer
Authentication
Security
Reports Transaction
monitoring
Secure KYC
Repository
3rd
Party
Acquirers
ISXPay
Card Acquiring
Intelligent
Routing
APM’s
AU/NZ Partner
Registered with the
UK ICO # ZA217768
Authorised by the
CBC # 115.1.3.17
iSignthis eMoney Ltd
Stock Code : ISX
Payment Settlement - explained
20
Monetary Financial
Services
21
Providing a RegTech solution to a diverse range of global
companies

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iSignthis wird zusätzlich an der frankfurter wertpapierbörse (fra ta8) gelistet

  • 1. iSignthis wird zusätzlich an der Frankfurter Wertpapierbörse (FSE: TA8) gelistet Frankfurt, 20. Juni 2017 - Das an der Australian Securities Exchange gelistete Unternehmen iSignthis Ltd (ASX) freut sich bekannt zu geben, dass es ab heute zusätzlich an der Frankfurter Börse (FSE) unter dem Kürzel "TA8" gelistet ist. Anleger können iSignthis-Wertpapiere direkt an der Australian Securities Exchange oder der Frankfurter Börse erwerben. John Karantzis, CEO, sagt: " Wir freuen uns, die Notierung unserer Aktien an der Frankfurter Wertpapierbörse bekannt zu geben. Als Regtech dass vorwiegend auf den europäischen Markt fokussiert, ist das zusätzliche Listing an der Frankfurter Börse ein logischer Schritt.Unsere europäische Kundenbasis wächst rasant durch die Umsetzung unserer Paydentity-Strategie, und Investoren in Deutschland und Europa zeigen zunehmend Interesse an iSignthis. Das Listing steht im Einklang mit unserem europäischen Fokus und bietet iSignthis den Zugang zu weiteren neuen potenziellen Investoren, die dazu beitragen werden, unsere Aktionärsbasis zu erweitern, die Liquidität zu erhöhen und iSignthis einem breiteren Publikum in ganz Europa vorzustellen. Als europäisches Finanzinstitut mit einer E-Geld Lizenz sehen wir die Frankfurt Stock Exchange als sehr bedeutsamen nächsten Schritt unserer Strategie um Transparenz zu schaffen, die Wahrnehmung im europäischen Markt zu stärken und eine Investment Möglichkeit für europäische Privatanlegerund Institutionelle Investoren. Wir beginnen den Handel heute unter dem FSE Kürzel TA8; und wie bisher an der ASX als ISX " Im Rahmen des zusätzlichen Listings wurden kein zusätzliches Kapital oder Wertpapiere ausgegeben. ISignthis geht davon aus, dass dass Frankfurter Listing die Handelsliquidität erhöht und die Investition in das Unternehmen von institutionellen und Privatanlegern in Deutschland und in Europa vereinfacht wird.
  • 2. About iSignthis Ltd (ASX : ISX) & (FSE : TA8) Australian Securities Exchange (ASX : ISX) and Frankfurt Stock Exchange (FSE : TA8) listed iSignthis Ltd is the global leader in remote identity verification, payment authentication and payment processing to meet AML/CFT requirements. iSignthis provides an end-to-end on-boarding service for merchants, with a unified payment and identity service via our Paydentity™ and ISXPay® 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 3.5Bn ‘bank verified’ card or account holders, that can be remotely on-boarded to regulated merchants in as little as 3 to 5 minutes. iSignthis Paydentity 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, trading as ISXPay®, is an EEA authorised eMoney Institution, offering card acquiring in the EEA, Australia and New Zealand. Über iSignthis Ltd (ASX : ISX) & (FSE : TA8) iSignthis wird an der australischen (ASX : ISX) und der Frankfurter (FSE : TA8) Wertpapierbörse gehandelt. Das Unternehmen gilt als weltweit führerender Anbieter für ortsunabhängige Identitätsverifizierung, Payment Authentifizierung und Processing gemäss AML/CFT Anforderungen. iSignthis bietet einen End-to-End Onboarding Dienst für Unternehmen, mit einem einheitlichen Payment- und Identitätsverifizierungsdienst basierend auf seinen Paydentity und ISXPay Lösungen. Durch die Verschmelzung von Payments und Identitäten ermöglicht iSignthis die Einhaltung gesetzlicher Vorschriften für einen verbesserten KYC Prozess und bietet globale Reichweite zu weltweit 3,5 Milliarden 'Bank verifizierter' Karten oder Kontoinhabern, die innerhalb von 3 bis 5 Minuten ortsunabhängig von regulierten Händlern erfasst werden können. iSignthis Paydentity Service ist die vertrauensvolle Back-Office-Lösung für regulierte Unternehmen und Händler, die es ermöglicht mit dem regulatorischen Wandel und Anforderungen Schritt zu halten und sich somit auf das Wachstum ihres Kerngeschäfts fokussieren können. iSignthis, firmierend als ISXPay®, ist ein in Europa autorisiertes E-Geld-Institut und Kreditkarten Acquirer in Europa, Australien. Für mehr Informationen besuchen Sie: https://www.isignthis.com/ Read more about the company at our website www.isignthis.com. For more information, please contact: iSignthis Ltd (ASX : ISX) Media: contact@isignthis.com Investor Relations, Chris Northwood, Activ8Capital, +61458 809 177, cnorthwood@activ8capital.com.au
  • 3. iSignthis – Frankfurt Stock Exchange Cross Listing FSE : TA8 & ASX : ISX Investor presentation - June 2017 N J (John) Karantzis B.E. LL.M M.Ent FIEAust CPEng Adj Managing Director, iSignthis Ltd (ASX : ISX), (FSE : TA8)
  • 4. 2 iSignthis Limited (ASX: ISX) & (FSE : TA8) Capital structure - ASX Ordinary shares - quoted on ASX 626,651,772 Other shares – staff and escrow 6,947,442 Performance shares # 336,666,667 Total Shares – incl Perf/shrs 970,265,881 Share price (19th June 2017) A$0.14 Market capitalisation – quoted & staff/escrow (A$m)A$88.7 Market capitalisation - Incl Perf/Escrow (A$m) A$135.8 Australia’s only ASX listed RegTech and Eurosystem authorised Monetary Financial Institution. iSignthis has a patented identity verification technology, linked with payment processing and payment facilitation capability, converging payments and identity into our Paydentity™ service. With an increasing European customer focus, we have now cross listed on the Frankfurt Stock Exchange (FSE). # Performance Shares Class A : 112.2m shares : annualized $5m run-rate in a 6 month period Class B : 112.2m shares : annualized $7.5m run-rate in a 6 month period Class C : 112.2m shares : annualized $10m run-rate in a 6 month period Note: Each class of performance shares is subject to a 3 financial year timeframe from listing on the ASX for those milestones to be achieved in order to vest (June 30, 2018) Options - unlisted Unlisted advisor incentive options 33,000,000 - various expiry from July 2017, 2018 and 2019 - various strike price from $0.38, $0.50 and $0.62
  • 5. Agenda 1. What do we do? 2. Regulatory evolution is driving change 3. Our technology advantage 4. What have we achieved so far? 5. What are we executing on currently? 3
  • 6. 4 1. What do we do? iSignthis leads in RegTech, focus on payment and identity verification • Payment gateway • Card vault • Anti Fraud Engine • PSD2 Strong Customer Authentication • KYC Platform (enhanced due diligence) • Transaction monitoring analytics • AML risk engines • Instant EDD customer onboarding • Card acquiring • Alternative Payment Methods • IBAN Accounts / Deposits • Card Issuing RegTechFinTech Monetary Financial Services Global, Scalable Cloud Based Service
  • 7. 5 iSignthis Ltd automates AML/CTF Enhanced Due Diligence KYC & transaction monitoring via its payments and identity processing platform (Paydentity™) for AML regulated sector businesses including: • Financial Institutions, • banks, lending, crowdfunding, pension funds, • securities / equities, • FX, CFD, binaries, and futures traders, • gaming, wagering, betting, casino’s, • money services businesses, • payment service providers, • insurance providers, • real estate, • digital currency platforms, • eWallets, Fintech, • other AML/Patriot Obligated businesses, and • Ourselves, as an EU regulated Monetary Financial Institution! 1. What do we do? iSignthis automates AML/CTF KYC and transaction processing
  • 8. 321 1. What do we do? ISX has three core revenue streams iSignthis collects revenue in three main streams Identify & Verify the Customer (KYC) € - flat fee per KYC verification AML/CTF function Processing of Payments € - flat fee per transaction Payment processing function Settlement of Payments % share of transaction value Acquiring/settlement 6 Verify Process Settle Eg: Potential income from each revenue stream €2 to €20 per KYC transaction depending on individual client agreements and volumes €0.06 to €0.30 per transaction processed, depending on client agreements and volumes 0.20% to 1.25% of the total transaction value charged on the customer credit/debit card Verify Process Settle
  • 9. 7 2. Regulatory evolution is driving change 4AMLD and PSD2 are requiring a more rigorous approach 4AMLD (“Fourth Directive”) • European regulators under 4AMLD Enhanced Due Diligence (EDD) for remote identity verification. • AML sector business, including Financial institutions, FX and gaming, are required to undertake ongoing monitoring of transactions for evidence of money laundering (AML) or funding of terrorist activities (CTM) • Identification of customers using Electronic methods and verifications for eKYC is permitted under various EU regulations. The iSignthis “Paydentity” service is the only dynamic, online, realtime solution that meets 4AMLD requirements whilst also processing payments. Our platform provides our Customers a basis for compliance.
  • 10. 8 2. Regulatory evolution is driving change 4AMLD and PSD2 are requiring a more rigorous approach PSD2 & transactional payment processing authentication • All online payments required to undergo Strong Customer Authentication (SCA) using a method of Two Factor Authentication (2FA) to be linked to the card’s owner. • The use of 2FA without proving a persons identity first, is known as Strong Authentication (SA) – this is commonly used by some tech companies and is not compliant under the current PSD2 regulations The iSignthis services meet the requirements of the PSD2 today allowing merchant customers immediate compliance and protection against credit card fraud and charge back costs. PSD2 will provide the added benefit of liability shift, which previously had only been allowed under card scheme rules using 3D Secure. Our Strong Customer Authentication is a by-product of our 4AMLD solution
  • 11. There are four commercial and compliant means to perform a Know Your Customer (KYC), all of which rely on bank or government sources. Paydentity™ incorporates bank issued credit and debit cards, as they are not only the leading online payment source, but also the largest single source of KYC data accessible globally. 2. Regulatory evolution is driving change The method of establishing identity has evolved 9
  • 12. 49% 42% 9% Unbanked Banked CRA Database 10 • 49% of the world is not banked * McKinsey • Corresponding Low ARPU • Manual processing with no digital/electronic solution • Not targeted by ISX• 51% of the world is banked *McKinsey • 9.6Bn regulated Credit/Debit Cards on Issue (source of EDD) *Nilsen • 51% Banked includes 9% CRA Database coverage • Corresponding High ARPU • iSignthis provides instant access to these customers Unbanked – 49% Traditional CRA’s and KYC databrokers compete for limited market size. CRA Database - 9% coverage Banked – 51% coverage 3. Our technology advantage ISX can identify & verify 51% of the worlds population iSignthis leverages the “KYC” that banks perform by dynamically linking the payment instrument to the person making the payment – providing verification of the “banked” persons in the world
  • 13. 3. Our technology advantage Patented technology uses a split payment method to verify identity The iSignthis Paydentity™ solution as shown by the graphic below achieves the goals set out under 4AMLD and PSD2 by dynamically linking the payment device to the customers bank account. Start Eg. Customer makes a €100 transaction Transaction is split into two amounts, creating a dynamic secret Eg Customer retrieves the dynamic secret from their online bank The two amounts making up the dynamic secret are entered into the iSignthis portal Paydentity Core achieved (Payment Instrument Verified) Eg 11
  • 14. 4. What we have achieved? The building blocks have been established and transaction volumes are growing • Patented Paydentity™ process, providing barriers to entry • Listed on the Australian Securities Exchange (ASX) • Built and delivered Paydentity™ from a concept to a working model, including back end connectivity to numerous banks and financial institutions. • Paydentity™ certified PCI DSS Level 1 in the cloud. • National Australia Bank (ASX : NAB) Payment Facilitation agreement • Contracted multiple AML sector businesses across various sectors and jurisdictions, proving Paydentity™ business and compliance case. • EEA Authorised Monetary Financial Institution (MFI) • ISO27001 Certified and EC GDPR ready • Recurring Paydentity™ transactions commenced on commercial scale • Transactional revenues growing steadily as more customers go live 12
  • 15. 5. What are we executing on currently? Live Paydentity™ transactions growing and additional customers are driving revenue 13 Customer Transacting Coinify Now XM.com Now Ixaris Now eMerchantPay Now Pepperstone Late 2017 / Early 2018 Borgun Imminent Note: Does not include one off integration testing transactions. # 4QFY17 does not include all transaction volumes for the month of June.
  • 16. 14 5. What are we executing on currently? Google analytics “session” data proves Paydentity’s global reach & effectiveness • Circa ~1.0m transactions processed to date • Average session duration shows Paydentity™ can identify, verify and process transactions within 5 ½ minutes • Bounce rate of <2.5% suggests low customer friction when utilising Paydentity™ to onboard customers. i.e. Customers are comfortable to carry on through the KYC/payment process +98.5% of the time. • Session data map (right) shows the true, actual global reach of the iSignthis Paydentity™ technology platform to date Actual Session data – last 3 months
  • 18. 16 Note : Paypal Inc and iSignthis Ltd (held by ISX IP Ltd) both have multiple granted patents in numerous jurisdictions claiming monopoly over their core intellectual property. Approach Examples (not exhaustive) Includes Europe and US Examples (not exhaustive) Includes Europe and US 1 or more Test / Dummy Transactions / Changing merchant name US7430537,CA2412184A1, EP1356438A2, EP1356438B1, EP2209095A1, US8296204, US8370259, US8417637, US8515871, US20020004772, US20080312998, US20120054103, US20120054104, US20120109823, US20130332364, WO2002005224A2, WO2002005224A3 Dynamic Changing of Statement Descriptor Random Alphanumerics US7734542, CA2728618A1, EP2304679A1, EP2304679A4, US8001050, US8452709, US20090319426, US20100241567, US20110302085, US20130268441, WO2010008770A1, WO2010008770A8 Use of Equation, Anagram, Word to Match to Picture US6032863 , US8131617, US7588181, US8805738, US7765153 Splitting a Transaction (Sales) Value / More than two splits / As an advanced electronic signature US8620810, CA2791752A1, CN102812480A, EP2553642A1, US20120323791, US20140222677, AU2012261779, AU2011235612 , AU2010100533, ZA2012/06455, SG201206344-2, WO2011120098A1 Two companies own ~100% of the IP around payment transaction verification via dynamic Knowledge Based Authentication (KBA)
  • 19. 17 Cysec & UK JMLSG Requirements – Two required Verified payment Verified address Document uploads Verified fixed phone Verified bank sign-in Electronic verification Notarised documents &/or &/or &/or &/or O r Satisfying Regulations requires One of Doc Uploads or Electronic Verification AND one of the second line. We choose payment verification. By verifying payment, we confirm: a) Source of funds b) that funding is available c) Enhanced CDD of customer, instantly & onboarding customer
  • 20. 18 • EU ID Harmonization • Advanced e-signature • EDD <> AES • Jan 2018 • One Leg Out • Risk Based Threshold • eWallet impact • Jan 2018 • Strong Customer Authentication (SCA) • Card Liability Shift • XS2A • Jun 2017 • Knowledge based assessment (KBA) • Customer D/D (CDD) • Enhanced D/D (EDD) • Transaction Monitoring 4AMLD PSD2 eIDAS EBA/ECB SecuRePay & RTS GDPR Privacy * Complex EU landscape shown by way of example. The AML/CTF & payments regulations landscape is what we solve
  • 21. 19 iSignthis Services – one API for Paydentity and ISXPay Customer Merchant EDD KYCPIV Card Tokenisation Payment Gateway Risk Engine Strong Customer Authentication Security Reports Transaction monitoring Secure KYC Repository 3rd Party Acquirers ISXPay Card Acquiring Intelligent Routing APM’s AU/NZ Partner Registered with the UK ICO # ZA217768 Authorised by the CBC # 115.1.3.17 iSignthis eMoney Ltd Stock Code : ISX
  • 22. Payment Settlement - explained 20
  • 23. Monetary Financial Services 21 Providing a RegTech solution to a diverse range of global companies