ISX Financial is incorporated in Cyprus and operates as a public company. We established ourselves in 2015 and have secured licenses in both the UK and the EEA through the Central Bank of Cyprus. We’re as much a technology company as a regulated services firm. Developing our own technology allows us to deliver a high-quality service directly to customers without relying on third parties.
ISX stands out because we consider ourselves a tier-one player with direct access to central banks. Operating our own technology stack lets us create tailored products independently, which means if a customer comes to us seeking a solution, we’re often able to offer it or customise an existing product on our roadmap.
This flexibility is unique and highly beneficial. Currently, our flagship product focuses on Open Banking, specifically our PaidBy® solution. This product streamlines the entire process, from checkout through to transmission and settlement, allowing merchants access to their funds in approximately 15 seconds. It’s a notable improvement over the traditional card settlement timelines, and we provide API-based notifications for instant cash flow.
Historically, card schemes were the go-to for businesses seeking to accept payments online or across different currencies. These schemes allowed for cross-currency settlement and provided the infrastructure for transactions between banks. Today, account-to-account payments offer a competitive alternative, and our PaidBy® solution replicates many of the benefits card schemes provide, only with faster settlement times and lower processing costs.
With PaidBy®, any customer in the UK or Europe can make an Open Banking transaction directly on our platform. Settlement occurs almost immediately – rather than the next day or longer as with card payments. We also support foreign exchange (FX) between currencies, which enables transactions across borders, for instance, from a UK customer to a European merchant. This functionality is essential as we expand our network across regions, making transactions seamless for customers and merchants alike.
Unlike other providers that only handle the ‘push’ component of Open Banking, ISX Financial manages the entire transaction lifecycle. We handle transmission, settlement, and FX, effectively replicating the full-service card schemes offered but with increased flexibility and speed. By offering an alternative that matches or surpasses traditional card services, PaidBy® provides businesses with faster, more effective cash flow.
Open Banking, especially regulated Open Banking in the UK and Europe, is a transformative development. Unlike card payments, which not all customers may have access to, every banked individual has a bank account that can leverage Open Banking. With PaidBy®, customers can make payments online seamlessly through our platform, which is backed by the Open Banking-powered network.
Open Banking is already impacting the market significantly, and we’re seeing this in our financials, with revenues projected at EUR 55 million and EUR 18 million in net profits this year. Our competitors, such as TrueLayer, operate in a narrower ecosystem, resulting in lower revenues and profitability. By managing the entire process – from checkout to settlement, and integrating FX capabilities – we provide a complete solution that supports our strong growth.
The next big step for Open Banking is point-of-sale (POS) integration. We’re exploring several innovations for PaidBy® to extend into in-person payment situations, such as ‘on-glass’ solutions that allow Open Banking transactions on mobile devices, and dedicated terminals that emulate card schemes. One option we’re considering is a mini scheme that uses host card emulation technology on Android devices to simulate a card payment, while connecting to Open Banking rails instead of traditional card networks.
This is technically feasible but presents some challenges. For instance, we’d need to convince acquirers and terminal providers to add Open Banking as an alternative payment scheme. Some smaller schemes, like JCB and Diners Club, have struggled with acceptance because of terminal compatibility and costs for merchants. To overcome these challenges, we’re exploring pairing Android or iOS devices with traditional terminals, as well as using over-the-air updates to integrate PaidBy® into compatible terminals.
Ultimately, moving away from physical cards and embracing Open Banking as a flexible solution will require industry-wide collaboration. Open Banking has the potential to bring new payment methods to the point of sale, reduce costs, and provide businesses with a more seamless, secure way to engage with customers.
This editorial piece was first published in The Paypers' Open Finance Report 2024, the latest comprehensive market overview and analysis focusing on the key players and products within the Open Banking and Open Finance ecosystem. Download the full report to discover more insightful content.
Nikogiannis Karantzis is the founder and Managing Director/CEO of ISX. He holds qualifications in engineering (University of Western Australia), law, and business (University of Melbourne). Nikogiannis Karantzis has over 20 years of experience across several sectors including payments, electronic money, online media, AML, defence, and secure communications.
About ISX Financial
ISX Financial EU PLC is a 'banktech' company that leverages its technology to provide financial services to merchants across the EEA and the UK. The company's combined payments stack and infrastructure provide complete end-to-end transactional banking, A2A payments, FX, remittance, and payment processing capability. ISXMoney's multi-currency IBAN accounts, alongside PaidBy®’s instant Open Banking, provide merchants with a tailored payment solution to reach any UK or EEA bank account holders.
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