IOUpay\u2019s development continues in June quarter with successful launch of myIOU BNPL platform, mass merchant onboarding and impressive early BNPL numbers. <\/p>\n
Fast-moving fintech provider IOUpay (ASX:IOU)<\/strong><\/a> continues to gain momentum with mobile banking transaction numbers up 9.3% in the June quarter along with the successful launch of its myIOU BNPL platform and service offering.<\/p>\n BNPL Total Transaction Value (TTV) for June was $584,459 with Net Transaction Revenue (NTR) of $48,413. \u00a0A further $1.6 million in TTV has been transacted already this financial year, delivering NTR of $142,508.<\/p>\n These numbers are all the more impressive given myIOU was launched 15th June in the midst of level 4 lockdown restrictions which were reinstated at the start of June.<\/p>\n \u00a0<\/p>\n \u201cWe are very pleased with the early transaction volumes. \u00a0Momentum is already building\u00a0 despite being in lockdown,\u201d said IOUpay director, Paul Russell, who Stockhead caught up with following the release of the company\u2019s June Quarterly Report & Business Activity Update.<\/p>\n Russell explained that if the growth trajectory can be maintained the company is not far from covering its monthly cash burn rate with new BNPL net transaction revenues.<\/p>\n \u201cThe company has reported normalised net operating cash outflow of $594,000 for the June quarter after adding back significant once off costs.\u00a0 We aren\u2019t too far away from breaking even on a net operating cash basis when you consider the BNPL net transaction revenue being generated,\u201d Russell said.<\/p>\n Based upon the cashflow report announced by the company, the current monthly cash burn (excluding once off costs) is estimated at nearly $240,000 when increased staffing costs are included.\u00a0 With over $51million in the bank, IOUpay has sufficient cash to cover net operating cash outflow for 30 quarters based upon the June quarter figures.<\/p>\n The company\u2019s myIOU official launch was held as an online virtual event which was covered by various Malaysian media.<\/p>\n \u201cTo launch our myIOU App and BNPL offering 2 weeks into a level 4 lockdown was no small feat, so we were thrilled to have the print and broadcast media coverage we received.\u00a0 Making the prime time national news on TV1, TV3 and Malaysia\u2019s national news agency Bernama as a headline story reaching more than 8.6 million people was a highlight, and we are building on that momentum now,\u201d Russell said.<\/p>\n \u00a0<\/p>\n IOUpay is capitalising on disruption during the pandemic, which has accelerated growth in digital payments, contactless payment methods and e-commerce activity.<\/p>\n Opportunities for innovative financial technologies are rapidly evolving as consumer communities and commercial enterprises seek digital solutions.<\/p>\n \u201cWe are in a strong position to benefit from the shift to the new digital economy through all of our business channels including digital payments, mobile banking and BNPL services,\u201d Russell said.<\/p>\n The company believes that consumers and businesses have adapted to the new environment and expects more people to become savvy users of technology to manage their money and organise their lives.<\/p>\n \u201cIt really provides companies like IOUpay the opportunity to deliver quality products that facilitate digitalisation in an inclusive way \u2013 easy to access and use, saving people time and money,\u201d Russell said.<\/p>\n Due to various Movement Control Order (MCO) restrictions implemented by the Malaysian Government to manage the pandemic, IOUpay has been focusing on online merchants.<\/p>\n \u201cThe MCOs have led us to shift our focus towards the online merchants belonging to our signed partnership communities as they are not restricted by the lockdown and many of them are experiencing increased volumes,\u201d Russell said.<\/p>\n \u00a0<\/p>\n IOUpay continued to expand its footprint in Southeast Asia during the June quarter, securing key partnerships with two of Malaysia\u2019s largest merchant networks MYP1 and Razer Merchant Services, representing over 65,000 merchants<\/a>.<\/p>\n The deals bolstered IOUpay\u2019s combined merchants available from strategic partnership agreements to more than 135,000.<\/p>\n Russell told Stockhead the partner relationships are building a sophisticated, highly integrated foundation for the distribution of myIOU BNPL service offerings to consumers.<\/p>\n \u201cWe expect our collaboration with quality partners like MYP1 and Razer to provide many growth opportunities.\u00a0 It\u2019s not just about the size of the ecosystem but how we integrate and interact to enhance the lives and businesses of our consumer and merchant communities,\u201d Russell said.<\/p>\n The company has reported signing 1,302 merchants of which 1,206 have been onboarded through a process of mass onboarding of large batches of merchants from IOUpay\u2019s strategic partners.\u00a0 From this number the company reported 199 merchants having been activated on the myIOU platform but Russell says that number grows each day.<\/p>\n \u201cPartners send over batches of merchants which our credit department reviews and curates for quality, and then selected merchants are processed.\u00a0 Ultimately, only those that meet our high standards and align with our brand values are activated onto the myIOU platform,\u201d Russell said.<\/p>\n \u00a0<\/p>\n IOUpay are developing various new marketing campaigns using social media influencers to drive growth through highly targeted community followings.<\/p>\n \u201cThe idea is to bring both global and local community star power to IOUpay and our ecosystem of merchants and consumers with targeted positioning, educational and entertaining content,\u201d Russell said.<\/p>\n \u201cWe are about unique, positive and uplifting experiences and we want that to come through all aspects of the brand and marketing.\u201d<\/p>\n The company is hoping to build on the transaction volumes already booked by leveraging social networks to grow the consumer base of myIOU.<\/p>\n \u201cWe\u2019re very pleased with the momentum we have already established in the weeks following the launch of myIOU and are wanting to capitalise on this so will be investing in targeted marketing campaigns to penetrate myIOU into new community populations.\u201d<\/p>\n \u00a0<\/p>\n The company has reported extremely positive indications from business development interactions with SMEs and large corporates.<\/p>\n \u201cB2B is expected to be a growth segment for us.\u00a0 There has been a lot of early interest from quality counterparties, which we are very excited about,\u201d Russell said.<\/p>\n Russell indicated that B2B interest so far has been particularly healthy in the automotive, technology and professional services industry verticals. \u00a0He said the business development team are already working on live transactions.<\/p>\n \u00a0<\/p>\n Earlier this month IOUpay announced the appointment of senior business development executive Christopher Kok to the key position of regional commercial officer.<\/a><\/p>\n With more than 20 years of business development experience in fast-moving consumer goods in international markets, Kok will drive the company\u2019s commercial activities, penetration of its BNPL product in Malaysia and business expansion into other countries in the region.<\/p>\n \u201cChristopher is an outstanding business development executive with an extensive track record of launching new products, developing new markets and leveraging partnerships to grow business volumes.\u00a0 He is a significant asset to the company, particularly given our strategic objectives,\u201d Russell said.<\/p>\n Once pandemic restrictions are eased, the company expects to resume its expansion into new SEA territories and activate instore merchants already onboarded as well as in-field promotion and marketing.<\/p>\n This article was developed in collaboration with IOUpay, a Stockhead advertiser at the time of publishing. <\/em><\/p>\n This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.<\/em><\/p>\n The post IOUpay explodes out of the blocks with strong early volumes following launch of myIOU BNPL platform<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"myIOU launches with impressive early BNPL numbers<\/strong><\/h2>\n
COVID-19 pandemic digital shift a positive <\/strong><\/h2>\n
Mass merchant onboarding underway<\/strong><\/h2>\n
Star power for marketing <\/strong><\/h2>\n
B2B deals set to surge<\/strong><\/h2>\n
Key operational moves to drive future growth<\/strong><\/h2>\n