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iSignthis share price rockets higher on patent news

business share price

The iSignthis Ltd (ASX: ISX) share price has continued its recovery and is up strongly again on Monday.

At one stage the payments company’s shares were up around 20% to $1.22. They have since dropped back a touch but are still up 12.5% to $1.15 in afternoon trade.

Why did the iSignthis share price charge higher today?

Investors have been buying the fast-growing payments company’s shares today after it provided an update on a patent application in Europe.

According to the announcement, the European Patent Office (EPO) has advised iSignthis that intends to grant patent number EP2553642 ‘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 is good timing for iSignthis as it coincides with the European Union’s directive requiring strong customer authentication (SCA) for cards and access to account services.

The release advises that many national regulators have 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.

Whereas this patent provides a means for iSignthis to independently achieve compliance with the European Banking Authority’s (EBA) regulatory technical standard (RTS) on SCA.

This means that consumers purchasing electronic money from the company’s iSignthis eMoney business will have available to them several means of authenticating their payment. Management believes this will allow for a seamless consumer experience that in most cases will also meet the customer due diligence or know your customer (KYC) requirements at the same time.

I think this is another promising development and could support its strong growth in GPTV.

At its last update the company reported annualised monthly GPTV of over $1.1 billion, which was a 160% increase since the end of June.

It is thanks to this strong growth that the company’s shares are up 666% since the start of the year.

Also rising strongly on Monday have been the shares of Bellamy’s Australia Ltd (ASX: BAL) following a takeover approach and Eclipx Group Ltd (ASX: ECX) after Citi upgraded its shares to a buy rating.

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Returns as of 6th October 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bellamy's Australia. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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