The deal with MYP1 today follows another deal signed with EasyStore last month, and solidifies IOUpay’s BNPL services in Malaysia.
Highflying fintech IOUpay (ASX:IOU) has cemented its push into the Southeast Asian markets today, signing an agreement with Malaysian-based payment platform, MYP1.
The deal today follows another partnership it signed last month with Malaysian ecommerce payments provider, EasyStore.
MYP1 is a major payment services provider in Malaysia and Southeast Asia, with over 15,000 card and QR payment acceptance merchants across the country. The company has also deployed over 50,000 Smart POS terminals to date.
The Strategic Teaming Agreement signed today is for a one-year renewable term, and extends beyond a standard merchant referral process agreement. In this deal, the companies will integrate IOUpay’s BNPL merchant app services with MYP1’s existing Smart POS terminals.
This will enable 15,000 in-store merchants to onboard their customers to use IOUpay’s BNPL services, instead of credit cards. Conversely, the deal will also allow IOUpay to onboard its own merchants to utilise MYP1’s Smart POS Terminals – providing a reciprocal, one-stop shop payment solution for all customers.
Southeast Asia focus
IOUpay is focused on being the first mover in a region of over 600 million people where a third of the population is still un-banked – with Malaysia and Indonesia being its first target markets.
In January, the company secured a Malaysian money lending licence, which allows it to comply with the country’s lending laws and provide its BNPL services in the country.
The approval paved a way for a $50 million capital raising in February, where the funds would be targeted as working capital to carve further inroads into the region.
What’s next
The system integration with MYP1 will commence this month, with an initial rollout scheduled for approximately 2,800 pre-selected merchants. The full rollout to all approved merchants from the remaining 15,000 merchants will be completed by 2022.
The company says the integration will allow IOUpay’s team to work with MYP1’s well experienced, data driven team, in order to accelerate expansion of IOUpay’s BNPL distribution network and transaction volumes in the region.
IOU’s share price has gone through the roof over the past year, increasing by almost 4,000 per cent. It’s trading today at 40c.
This article was developed in collaboration with IOUpay, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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