The EML Payments Ltd (ASX: EML) share price is soaring on Thursday morning.
In morning trade, the payments company’s shares are up 17.8% to $3.24. Although, it remains a distant 45% away from its 52-week high of $5.89.
Let’s take a look at what is creating excitement among EML investors today.
Thumbs up for Ireland operations sends EML share price flying
In its latest update, EML Payments has informed investors of recent dialogue from the Central Bank of Ireland (CBI). This follows months of uncertainty for the company following the initiation of an investigation after CBI found regulatory concerns within the PFS Card Services (Ireland) Limited (PCSIL) business.
According to the release, CBI has advised it will allow PCSIL to sign new customers and launch new programs whilst staying within the material growth restrictions. Positively, PCSIL expects it can meet the obligations. This removes any previous concern of EML’s subsidiary losing the ability to continue expansion.
Additionally, broad-based reductions in limit controls on programs will not be imposed. This is also beneficial for the value of transactions processed by the company. Furthermore, CBI will continue to work with PCSIL to agree on appropriate limits under its risk management and controls framework.
Lastly, the central bank intends to impose a material growth limitation over PCSIL’s total payment volumes. This will be in place for 12 months with the potential of it being removed earlier following third-party verification of PCSIL implementing its remediation plan effectively.
The news has been well received by the market today, with EML Payments’ share price breaking above $3 again.
Following this, EML’s PCSIL intends to submit documentation to work with CBI on growth limits. The Ireland subsidiary intends to do this by 30 November 2021.
Notably, the update also indicated PCSIL’s remediation plan is on track. The card services business has been high volume-low yielding programs to comply with a material growth restriction.
Despite today’s recovery, the EML Payments share price is still down 22% year-to-date.
The post EML (ASX:EML) share price rockets 17% on new programs green light from regulator appeared first on The Motley Fool Australia.
Should you invest $1,000 in EML Payments right now?
Before you consider EML Payments , you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and EML Payments wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
- Are these 2 top ASX growth shares buys?
- Why Afterpay, City Chic, EML, and Nickel Mines shares are pushing higher
- EML (ASX:EML) share price lifts 5% as chair spruiks upside potential
- The EML (ASX:EML) share price is down 30% so far in 2021. Here’s why
- These were the worst performing ASX 200 shares in October
Motley Fool contributor Mitchell Lawler owns shares of EML Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended EML Payments. The Motley Fool Australia owns shares of and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/2ZoP7ka