The EML Payments Ltd (ASX: EML) share price is in the green today.
As of writing, shares in the software as a service (SaaS) company are trading for $3.86 – up 4.89%. The S&P/ASX 200 Index (ASX: XJO), meanwhile, is 0.24% lower.
While the company hasn’t made any market announcements for a few days, let’s take a closer look at what may be causing EML shares to lift.
Why EML is rising
One reason for today’s increase could be a rebound from Friday’s update. The update sent the EML share price lower.
EML identified “historical deficiencies in cash” related to dormant e-money accounts in its Irish-based business, Prepaid Financial Services (PFS).
In May, EML shares crashed over 40% in one day when the Central Bank of Ireland announced an investigation into PFS’ card services business over concerns about anti-money laundering compliance.
As PFS, and therefore Ireland serves as the base of all of EML’s European Union (EU) operations, the investigation put significant risk on the company’s continuing operations within the EU.
On Friday’s release, the company explained that the deficiencies pre-date its acquisition of PFS UK. Motley Fool Reported on Friday that EML does not expect the event to have an impact on its profit and loss account. It does, however, expect it will be required to inject £14.1 million ($26.6 million) into safeguarded accounts.
Another reason may just be because the entire tech sector is rising today. Presently, the S&P/ASX All Technologies Index (ASX: XTX) is lifting 3.03%.
EML share price snapshot
Over the past 12 months, the EML share price has increased 30.9%. Year-to-date, however, shares are down 8.75%.
EML Payments has a market capitalisation of around $1.3 billion.