I believe the ISX Demerger Prospectus has outlined again how unique and valuable the ISX business model is. ISX are now established payment service providers to both the “wholesale” and “retail” banking industries. After much research I cannot find another payment service provider that offers the same type of Strong KYC and fast client customer on-boarding and payment services for both the “wholesale” and “retail” banking industries. It appears that this is likely the reason why there are multiple public competitors trying to stifle or stop ISX. ISX currently service approximately 215 clients enabling ISX to not “have their eggs all in one basket” but a diversity of clients across various industries giving greater revenue security no matter what industry is growing or struggling. A few of the unique aspects to the ISX business model and ongoing growth strategies from the Demerger Prospectus are outlined below:
ISX is a principal member of Mastercard Inc., Diners Club, Discover, and JCB, and provides merchants with access to payments via alternative methods such as SEPA, Poli Payments, Sofort and others.
“ISXFEU’s eMoney competitors include Paysafe Group’s Neteller and Skrill. However, of these, only ISXFEU is a principal member of the major card schemes noted above and is the only one able to offer card acquiring services to third parties as well as “self-acquire” in order to issue its own eMoney into IBAN based accounts that it issues to consumers. ISXFEU has a number of competitive advantages, including being one of the very few hybrid eMoney issuers and card PSPs in the EEA, with further advantages due to its RegTech stack, including Paydentity. Paypal also offers card processing and eMoney facilities in other sectors in which ISXFEU does not offer services, and has an in-house only service comparable to Paydentity, but with certain disadvantages, including not being cross-currency capable and generally taking a longer period to verify a person. Both Paypal and ISXFEU have patented their payment instrument verification methods”. The following statement is from the ISX & ISXFEU websites: “PaydentityTM, the only product in the market that converges payments and identity to satisfy strict AML/CFT regulatory requirements for regulated merchants”.
“ISXMoney provides ISXFEU's business clients with access to eMoney services for segregation of their client funds, together with day-to-day operating eMoney accounts in order to run their businesses. This is coupled with the existing payout and pay-in options to managing their money flow, along with having the surety that their EURO (€) funds are safely held at zero credit risk with the Euro system’s Central Bank of Lithuania. By way of contrast, Paypal uses commercial banking relationships and holds its client’s funds with global systemically important banks as opposed to central banks”.
“flykk offer a competitive advantage because it alerts merchants in real time via API of receipt of fund into their flykk IBAN. This eliminates the need for a manual or semi-automatic approach to reconciliation of the bank account. This means that merchants can update customer account balances on their trading, betting, eCommerce, and FX platforms in real time with confidence that the funds have cleared and are in their merchant IBAN account. Compared to traditional card processing and acceptance, settlement times are reduced from days to seconds, and the risk of chargebacks is almost entirely eliminated”.
“ISXFEU Group intends to pursue further monetary financial services licences to operate in an equivalent manner as an authorised electronic money and payment institution in jurisdictions outside the EEA and the United Kingdom. Presently, ISXFEU is focused on the UK and the EEA, with plans to expand geographically into Canada, the United States and Asia Pacific. ISXFEU is also looking to expand into other AML regulated sectors where ISXFEU has a competitive advantage with its RegTech and FinTech capabilities. The EU represents approximately one-third of the global payments market and is still in an expansionary phase for the group”.
“At present, the intellectual property of the ISXFEU Group is used defensively to block other entrants into strategic areas of the market, to enhance the customer perceived valued of its services of its Regulated Services Division. ISXFEU also possesses an as yet unexploited capability to licence its know-how, including extensive software systems and intellectual property rights (in the form of patents granted across a number of jurisdictions) to prospective customers”.
“ISXFEU will further enhance its product offering by launching cross border remittance capabilities in 2021. These capabilities, allow money to be remitted to other jurisdictions, outside the EEA and UK. There is a project underway scheduled to conclude by early 2022, that will also allow ISXFEU to issue debit cards that can be linked to a retail customer’s IBAN, allowing cash withdrawals at ATM’s and payments at "Chip and PIN" point of sale terminals”.
“Merchants are able to market ISXFEU’s superior speed to payout when attracting new customers”.
I believe ISX Financial EU revenue will grow quickly especially after being free from the ASX/ASIC shackles. ISX own their entire software infrastructure, are now an established payments service provider with all their patented methods proven and reliable and with their EU and UK Banking Licenses in place. I am looking at ISXFEU as an investor who will see the ISXFEU prospectus for the first time; I believe many investors will see ISX as an exciting, wealth creating investment. I also believe ISXFEU will make some large revenue announcements before they list.
ISXFEU have also recently attended iFXEXPO and the SBC Summit in Europe both large and well promoted events for merchants looking for payment providers and other fintech services. With ISXFEU offering merchants one of the fastest on-boarding of customers for their merchants, superior “speed to payout” and at a highly competitive rate, many more merchants are likely to “jump in the ISXFEU boat”. The fast on boarding of merchant customers results in a significantly higher conversion of prospective customers to customers who transact.
Adding in ISX’s approximate 20% shareholding in NSX and with a “leading technology edge” global exchange outlook the future growth for ISX looks very compelling.
I believe ISXFEU will gain much more revenue before they list on a premium global stock exchange.
I am not an employee of ISX nor have any other associations with ISX; I am an early investor in ISX, continued to research and purchase shares in ISX.
