The market may be dropping notably lower today but that hasn't stopped the iSignthis Ltd (ASX: ISX) share price from storming higher.
On Tuesday the leading emoney, payments, and identity technology company's shares are up a sizeable 12% to 38 cents.
This latest gain means that the iSignthis share price has now climbed a massive 153% since the start of the year.
Why is the iSignthis share price storming higher today?
This morning iSignthis announced that it has achieved a break even position on a weekly cash run rate basis.
According to the release, gross profits now exceed group operating costs and will be contributing positively to the company's earnings before interest and tax line.
It explains that the company's profit contribution from its current onboarded merchants now comfortably exceeds the $8.75 million annualised operating cost base at the current processing and EU acquiring levels.
Management also revealed that annualised gross processed transaction volume (GPTV) now exceeds A$542 million, when calculated against actual weekly processed funds.
Another positive is that iSignthis is continuing to onboard its backlog of merchants, with less than 25% of merchants that have been approved and contracted being currently onboarded to the network and active. This is expected to boost its gross profits and GPTV.
However, management made a point to note that its break even status is based on the assumption that its contracted merchants continue to transact and process GPTV with the company at the current levels and that it does not increase its operating costs by targeting new growth initiatives such as new products, regional expansion outside the EU and Australia, or acquisitions.
What does iSignthis do?
iSignthis is a global RegTech leader in remote identity verification and payment authentication coupled with deposit taking, transactional banking, and payment processing capability.
It provides an end-to-end on-boarding service for merchants, with a unified payment and identity service via its Paydentity and ISXPay solutions.
The benefit of this is that 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."
Payments companies clearly have been a good place to be invested this year. As well as iSignthis rising 153% year to date, the likes of Afterpay Touch Group Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) have stormed 108% and 206% higher, respectively, in 2019.
