- IOUpay has achieved various operational and financial milestones despite the ongoing COVID-19 situation in Malaysia.
- Its BNPL offering myIOU has been gaining traction since its launch in June this year.
- The Company has acquired a 42% stake in Malaysian finance business IDSB, a complementary business with IOUpay.
- IOU has also rolled out a sophisticated digital marketing strategy to extend the reach of its myIOU service offering.
IOUpay Limited (ASX:IOU) is a financial technology and digital commerce company, providing mobile banking and payment services in Southeast Asia.
The Company continues to gain momentum with its recently launched myIOU BNPL platform and service offering, reporting impressive numbers.
From 1 July to 16 August 2021, IOU reported Total Transaction Value of AU$2,906,253, up from AU$584,459 recorded as of 30 June 2021. During the period, the number of merchants onboarded was also up by 72% since 30 June, while consumer activated accounts ballooned 333%.
The service is designed to cater for merchants as well as consumers to tap the ever-growing cashless market in Malaysia and Southeast Asia. The region has high smartphone and internet penetration, huge underbanked and unbanked population, and is witnessing rapid adoption of cashless payments.
Given this backdrop, let us look at the recent key developments fuelling the Company’s growth momentum.
Acquisition of 42% stake in IDSB
IOU recently announced that it was acquiring 42% of the overall issued capital of I.Destinasi Sdn Bhd (IDSB), representing a non-controlling interest in a uniquely and strategically aligned business.
Notably, IDSB is a private company operating a financial services business with focus on offering instalment-based consumer credit services to civil servants for and on behalf of Malaysian banks.
Data Source: IOU Announcement 09/09/21
The acquisition indicates a significant milestone for IOU as it suggests the potential to benefit from various opportunities created through the business synergies of both IOU and IDSB.
RELATED ARTICLE: IOUpay (ASX:IOU) on high growth trajectory with myIOU BNPL platform
Sophisticated digital marketing strategy launched
IOU also looks to leverage its sophisticated digital marketing strategy, targeting key cultural demographic groups throughout Malaysia via a portfolio of social media influencers. The influencers will be engaged in driving awareness about and engagement with the myIOU service offering.
On top of this, IOU has also engaged award-winning international singer-songwriter Yuna as the Face of myIOU, another notable milestone.
Source: © Everythingpossible | Megapixl.com
The portfolio of social media influencers and Yuna provides an aggregate reach in excess of 10 million followers.
The current times seem to be a great opportunity for the Company to transition to digital sources of marketing to promote its products and services.
IOU has been on the lookout for growth opportunities and potential partnerships to attain critical milestones. In the process, the fintech provider has established strategic partnerships with leading industry players like Razer Merchant Services, MYP1, iPay88 and EasyStore.
As the outlook for fintech and e-commerce remains bright, it would be interesting to see the Company’s path forward and how strongly it responds to the opportunities.
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IOU stock closed at AU$0.260, up by 6.122% on 24 September 2021.