Ann: Australian Merchant Onboarding Update, page-2

Australian Merchant Onboarding UpdateHighlights• ~12 regulated merchants have applied for facilities• MCC 6211 (equities/trading/CFD/FX) is principal category of merchant applicants• 3 Australian merchant contracts executedMelbourne, 14th February 2019: iSignthis Ltd (ASX: ISX | FRA: TA8) (“The Company”) following itsannouncement dated 6th February 2019, is pleased to announce that it has received a number of applicationsfrom Australian domiciled merchants for ISXPay’s transactional banking capabilities.The Company has received more than 12 applications, mainly in Merchant Category Codes (MCC) 6211(Equities/CFD/FX), with some MCC 7995 (Gambling).The Company has also executed 3 agreements in the MCC6211 category, with GPTV to be advised in duecourse post commencement of processing. These merchants will commence integration in coming days, withcommencement of processing anticipated around 30 days. The first merchants are expected to commenceprocessing during the first week of April 2019 with contribution to revenue in quarter 2 of FY/CY2019.Merchant Onboarding ProcessThe Company has received a number of queries from investors as to how the application process iscommenced by merchants and managed by the Company.The underwriting process requires that the Company receives a completed Merchant Application Form(available from our website isignthis.com/documents), together with financial, incorporation and ownershipdetails of the applicant. Underwriting may take as little as five days, or in some cases more than 30 days,depending upon complexity of the applicant’s ownership structure and information submission quality.The Company verifies the Merchant’s incorporation, operating licenses (if applicable, e.g. AFSL), directors,ownership structure, and ultimate beneficial owners in order to satisfy AUSTRAC and Anti Money LaunderingRegulation requirements. A financial assessment, including past processing performance is also conducted,with terms extended to the applicant usually in parallel with the underwiring process.Once underwriting is satisfied, and an agreement is executed with security deposit received (if applicable),the merchant is granted credentials to the Paydentity™, ISXPay® and Probanx® API’s and dashboard.Merchants have been known to complete integration in less than 3 business days, with around a month beingthe usual timeframe for integration to be completed.Upon completion of integration, it is usual for merchants to take up to 2-6 weeks to cycle between theircurrent card processing and ISX facilities, with a gradual ramp up thereafter taking a further 6-8 weeks.