Fintech Identitii gets +60pc boost on new Mastercard deal
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Regtech company Identitii (ASX:ID8) has scored a five-year distribution deal with global payments giant Mastercard.
ID8 shares were one of the standout performers in morning trade, as the stock surged back above 30c for the first time since January.
The deal will give Identitii the opportunity to licence its Overlay+ regulatory compliance platform to any MasterCard customer worldwide.
In the wake of this deal, ID8 becomes the latest in a growing list of ASX fintech small caps to rip higher on the back of distribution deals with major payment companies.
BNPL stock Spliit (ASX:SPT) surged in mid-June after also signing a distribution deal with Mastercard, while dashboard platform 9Spokes (ASX:9SP) also found momentum following a deal with Visa.
The share price rally marks a strong rebound for ID8, which went into a trading halt on February 1st at 29.5c.
After more than three months on the sidelines, the stock recommenced trading on May 14 below 10 cents, after completing a partially-underwritten capital raise priced at just 7c per share.
The company said it’s unable to determine potential revenues from the Mastercard deal at this stage, but said it will update the market on its progress in due course through ongoing ‘statements of work.”
ID8’s Overlay+ technology is deployed as an additional layer on top of the existing infrastructure within financial services companies, to help streamline their individual compliance obligations.
The agreement will run for five years, before auto-renewing on one year terms unless extended by either party, or terminated by Mastercard (with 30 days notice).
CEO John Rayment said the deal marks step one in a multi-stage process, “following which we agree specific statements of work which outline how Overlay+ will be used to address particular needs in their business”.
Information security company archTIS (ASX:AR9) also rose after announcing a new Commonwealth government contract (in partnership with KPMG). AR9, which has established a network of of clients in government and defence, said it will provide expertise around security architecture and information sharing for KPMG, up to the value of $400,000.