Identitii Share Price Jumps 45% on New Deal (ASX:ID8)
A quick look at today’s bolter, Identitii Ltd [ASX:ID8].
Turns out, money laundering and cybercrime is big business these days, not only for criminals but also for those trying to stamp it out.
The aim is to solve this huge regulatory challenge without replacing legacy technology systems.
With an exciting new deal being announced recently, the ID8 share price shot up over 43% at the time of writing, to trade at 22 cents.
What’s happening at Identitii?
International money laundering is massive.
The estimated amount of money laundered globally in one year is 2–5% of global GDP or US$800 billion to US$2 trillion.
One of the common systems in use for money laundering is the forex market.
Global currency trading is a breeding ground for this type of thing due to its very make-up.
There is no centralised exchange for trading, so every jurisdiction applies its own laws to the market and there is little to no communication between the global jurisdictions.
This applies across many areas of global finance, not only the forex markets.
In a recent announcement, Identitii released details of a new partnership with Mastercard.
Mastercard will use Identitii’s Overlay+ platform to enable the secure sharing of information over the Mastercard account-to-account network, to help streamline financial crime compliance in cross-border payments
With there being 939 million Mastercard credit cards in global circulation as of 2020, it’s easy to see how this could also be a breeding ground for money laundering and a problem that needs to be solved.
Where to from here for Identitii?
On the back of the new partnership announcement, CEO John Rayment mentioned:
‘We are really pleased to announce our first project with Mastercard, following the Master Services Agreement announced in August. Mastercard will use Overlay+ to support secure information sharing over its cross-border payments network, simplifying financial crime compliance and streamlining payment operations.’
Being coupled with a global leader like Mastercard should only help to boost the company’s profile and stock price.
The ID8 share price fell back in recent trading to the level of 15 cents, before jumping up on the Mastercard announcement.
Should it fall back again, then the level of 15 cents may come back to focus as it had proven strong in the past.
On the upside, should the price push through the level of 23 cents, then the level of 30 cents may provide future resistance
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For Money Morning