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- IOUpay has joined hands with a major payment industry service provider in Malaysia and South East Asia.
- The agreement will drive BNPL transaction volumes and smart POS terminal installations.
- The system integration process will begin during the current month, and the rollout is expected to complete during 2022.
Fintech and BNPL player IOUpay Limited (ASX:IOU) has been firing on all cylinders to accelerate the expansion of its BNPL offerings. Since the beginning of the year 2021, the company has inked various agreements to expand the reach of its services.
Latest in the series is a Strategic Teaming Agreement with MYP1 Commerce Sdn Bhd. Triggered by the upbeat market update on the new partnership, IOU stock traded higher by 5.194% to settle the day’s trade at $0.405 on 6 April 2021.
Agreement with MYP1 Commerce
Based in Malaysia, MYP1 Commerce Sdn Bhd is a major service provider in the payment industry, with operations across South East Asia (SEA).
Under the agreement between IOU and MYP1, MYP1’s merchants would be connected to IOU’s BNPL platform, allowing customers to pay using the BNPL payment services. The agreement is for a one-year renewable term, wherein MYP1 has agreed to refer and acquire its merchants to onboard and use IOU’s BNPL payment service offering.
PREVIOUS UPDATE: IOUpay continues to spread its BNPL wings across South East Asia
Moreover, IOU’s BNPL Merchant App services would be combined with the existing Smart POS terminal installation base of MYP1, which is distributed across 15,000 merchants to handle customer payments for goods and services sold by them.
Agreement Terms to Benefit IOU and MYP1
The deal would allow authorised merchants to gain access to the BNPL services of IOU. The arrangement will also enable the onboarding of customers who are willing to shift their payment from credit or debit cards and e-wallets to BNPL using their existing smart POS terminal for goods and services.
Therefore, cash, credit, and BNPL payment alternatives that can be processed on a contactless basis using the existing smart POS terminal are available for MYP1 merchants and their customers. This further indicates a new domestic innovative merchant preference and payment solution.
As per the agreement, IOU would serve as a master merchant for MYP1 to onboard merchants originated from IOU to use the Smart POS Terminals of MYP1, providing merchants and their customers with full-service payment options under one Smart POS Terminal.
Notably, the agreement does not involve any consideration to be paid to MYP1.
Significant Sales and Support Presence
MYP1’s merchant base mainly comprises in-store merchants in contrast to virtual e-commerce-based merchants. It has a major in-field merchant sales and support presence with a strong national merchant services team.
This offers a valuable, experienced, and well-resourced in-field services team to collaborate with in-house business development and merchant services team of IOU to expedite the development of its BNPL distribution network and transaction volumes.
The process of integrating systems with BNPL payment processing capabilities of IOUpay and MYP1 is planned to commence in April.
Subsequently, a scheduled rollout initially to 2,800 jointly selected MYP1 merchants would take place over the course of the remaining nine months of 2021. Rest of the MYP1 merchants are slated for rollout in the next year.
Source: Company Announcement 06/04/2021
In the initial phase of the merchant onboarding and rollout, the company would choose meticulously vetted merchants for quality control and transaction volume and profit objectives, given the size and scope of the existing merchant network of MYP1.