IOUpay (ASX:IOU) deepens Malaysian footprint with RMS Reloads deal


  • IOUpay has inked a Bill Payment Service Agreement with one of the largest offline-to-online payment networks in South East Asia.
  • The agreement allows IOU’s customers to make BNPL instalment payments at any merchant across RMS Reloads’ extensive national merchant network across Malaysia.
  • IOU will commence the system integration process during May, with completion scheduled by June.

IOUpay Limited (ASX:IOU) has entered into a new partnership with Malaysian payments company RMS Reloads Sdn Bhd. The Bill Payment Service Agreement executed between the two parties has a three-year renewable term.

Founded in 2010 in Malaysia, RMS Reloads has emerged as one of the largest offline-to-online digital payment networks in South East Asia. The extensive network of RMS includes over 10,000 physical points of presence across stores in Malaysia.

Triggered by the upbeat update, IOU stock shot up 6.6% to AU$0.400 on 5 May 2021. 

Bill Payment Service Agreement Details

Under the agreement, RMS Reloads will provide a collection agency service that would empower IOUpay customers to make BNPL instalment payments at any merchant across its vast national merchant network.

Significantly, both the parties have the option to terminate the agreement by providing a 90-day notice to the other party. Moreover, there is no consideration paid by IOU to RMS Reloads for entering the deal.

DID YOU READ: IOUpay teams up with MYP1 to expand BNPL footprint

Strategic Rationale for the Agreement

IOU believes that the contract holds significant strategic value to its payment collection operations, in-field distribution existence, and merchant and customer reach. This is backed by over 10,000 physical points-of-presence of RMS across Malaysia, offering its over-the-counter services.

Every store would act as a payment collection agency for IOU under the agreement. Moreover, the contract allows IOU’s customers to make their BNPL instalment payments to IOUpay at any of RMS’ extensive merchant network across Malaysia.

This also enables IOU’s customers to make cash and e-wallet payments over the counter for all or part of their BNPL instalments. These over-the-counter payments are also called offline-to-online payments (O2O) and are especially prevalent in Malaysia and South East Asia for customers who desire to make cash payments or past due payments.

DETAILED DISCUSSION AT: IOUpay (ASX:IOU) bolsters its leadership team to expand BNPL offering

Source: IOU Announcement 05/05/2021

System Integration to Last Over May-June

The system integration process for both the parties will commence during May 2021, covering an API connection of its Merchant App to the Bill Payment Counter Collection System of RMS.

This integration is intended to allow merchants to scan IOUpay customer QR Codes and directly update IOUpay’s system with the instalment as paid automatically, sending the offline customer payment to IOUpay online.

These IOUpay customer QR Codes are generated by the MyIOU Consumer App and displayed on customer's mobile devices.

‘MyIOU’ is IOU’s Consumer App which allows the processing of BNPL customer instalments online by automatically deducting from the credit card, debit card and savings accounts of the customer as a priority payment. This payment process is called standing order, which is like a direct debit.

MORE ABOUT PLACEMENT: IOUpay Limited’s (ASX:IOU) Largest Single Raise of $50M to Fire Up Expansion Plans 

IOU has plans to conclude the system integration and testing by June 2021. Subsequently, the bill payment collection service will be live and accessible to all registered and approved IOU BNPL customers across thousands of stores.

This partnership is expected to further amp up the Company’s business in Malaysia.  

IMPORTANT UPDATE: IOUpay continues to spread its BNPL wings across South East Asia

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