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Why the iSignthis share price rocketed 24% higher today

Payment Technology
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The iSignthis Ltd (ASX: ISX) share price has had a very positive start to the month.

The embattled payments company’s shares were up as much as 24% to $1.16 at one stage this morning. Whilst they have dropped back a touch now, they are still 17% higher in early afternoon trade.

Why is the iSignthis share price rocketing higher today?

Investors have been buying the company’s shares today after it provided an update on its performance during the month of September.

According to the release, iSignthis’ actual annualised Gross Processed Turnover Volume (GPTV) exceeded A$1.9 billion during September. This is a 360% increase since the end of June and a 73% lift in GPTV month on month.

Management advised that actual processed transactional volumes within the EU and Australian Paydentity Ecosystem continue to grow in line with expectations as new business customers are onboarded.

In addition to this, it revealed that the Paydentity ecosystem continues to expand as a business service offering, with a focus on growth through customer acquisition and multiple revenue lines. This includes card acquiring and eMoney accounts growth.

For the third quarter, iSignthis’ Business Customer Group Approvals increased by 45% to 304. It appears confident of further strong growth in this metric, noting that the “approvals team continues to work through the growing pipeline of business customer applications.”

Should you invest?

Whilst there is a lot to like about the industry the company operates in and the growth it is reporting is eye-catching, I would place it in the too hard basket at this point. Especially given the issues raised by the Ownership Matters report recently.

For now, I would suggest investors stick with the likes of Afterpay Touch Group Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) if they want exposure to the payments industry.

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Returns as of 6th October 2020

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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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