QUOTED, no link sorry. "iSignthis have patented technology that...

QUOTED, no link sorry.

"iSignthis have patented technology that creates a
‘secret’ using a payment instrument sent to a trusted
account of the customer.
The customer is then asked to retrieve that ‘secret’ to
authenticate their identity.
For example, you log in to your online banking and
locate specific charges from your merchant.
In the case of iSignthis they break up the payment
into two or even three charges of particular and
unique amounts. The amounts will always total up to
the value of the order.
So for a $50 order you might see $39.09 and $10.91.





If you’ve ever registered with PayPal you’ll know how
they authenticate users. You wait three to five days
for PayPal to send you two unique micropayments to
your bank account that you want to use. These will
typically be something like $0.01 and $0.03.
By using these numbers in your ongoing PayPal
registration they can verify you as the account holder
and authenticate your payments.
Here’s the thing. There are two companies that can
provide all the requirements for the EBA and ECB and
their PSD 2 requirements. One is PayPal, the other is
iSignthis.
Don’t think that iSignthis is a rip off of PayPal either.
If it was, they’d already be mired in lawsuits.
iSignthis has approved patents over their technology.
They’re legit, and they’re about to tap into a $1.5
trillion market with some three billion customers up
for grabs.
But let’s look at the immediate opportunity for
iSignthis.


555% in the blink of an eye thanks to
the EU
Their primary focus is the EU market. This is where
the short term need for their technology is.
All payments service providers will have to comply
with the ECB, EBA regulations under PSD 2 by 1
August 2015. Those that don’t will be subject to
penalties.
There’s going to be a mad rush in the next three
months to get the new strong authentication
requirements up and in play.
The EU market for ecommerce is £156.67 billion. And
economic research group Market & Markets estimate
the global market for multifactor authentication will
reach $10.75 billion by 2020.
In terms of meeting the requirements of PSD 2
and being able to implement and roll out the
requirements with speed and at a low cost, iSignthis
is in a unique position.
Based on a $10.75 billion market. Let’s say iSignthis
are able to capture just a fraction of that market, say
just 1%.
That would be revenues of $107.5 million.
Now it’s hard to estimate exactly how iSignthis will
perform financially. But if we look at their closest
competitor, PayPal, you can see there are some tidy
profit margins in this industry.
PayPal run a 25% operating margin. If we say
iSignthis don’t even achieve that, but a margin
of 20%, that would be net profits of around $21.5
million.
Currently a general market valuation on PayPal is $40
billion. That puts them at a P/E ratio of 16 times.
Applying just a 10 times P/E ratio to iSignthis on
$21.5 million gives them a market cap of $215
million.
That’s just a lazy 555% premium to their current
market cap.
Of course iSignthis is just a start-up company really.
And with a market cap of $32.8 million, it would be
one big contract, which could easily see them double
in value.
It’s early to put a solid number on just how big they
could get. I doubt they’ll reach the lofty heights
of $40 billion like PayPal. But don’t forget PayPal
started from virtually nothing too."