Summary
- IOUpay Limited (ASX:IOU) has released its investor presentation, highlighting its future goals of expanding inter product categories and gaining prominence in the South East Asian economies.
- IOU has upgraded its digital payments offerings to boost its competitive advantage, decrease costs, increase recurring revenue, and obtain valuable and large strategic partnerships.
- The company intends to capitalise on the growing cashless South East Asian economies with additional value-added services.
IOUpay Limited (ASX:IOU) released its investor presentation on 28 October 2020. The investor report focused on providing the company’s present operational performance and its future goals of expanding inter product categories and gaining prominence in the South East Asian economies.
Operating as a fintech and digital commerce software and services provider, the company facilitates millions of transactions on a monthly basis in Malaysia. Its platform IOU Pay enables large customer communities to extend their IT applications to any mobile device and integrate mobile technology via their existing business.
Customers include the top 20 banks in Malaysia and prominent telcos and corporates in Malaysia and Indonesia. Few top tier customers are Citibank, Telekom Malaysia, Standard Chartered, Petronas, Telkomsel, Heineken, Panasonic, Mazda, AXA, MBSB Bank, Bank Islam, and Sun Life Financial.
The company has upgraded its digital payments offering to boost its competitive advantage, decrease costs, increase recurring revenue, and obtain valuable and large strategic partnerships. The company intends to further invest in data analytics, algorithm development and third-party API integration.
IOUpay recently rolled out its BNPL services. The company intends to capitalise on the growing cashless South East Asian economies with additional value-added services.
As on 23 October 2020, the company has A$2.7 million as cash in hand with no debt.
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Why IOU Looks Bullish?
The company is operating in the growing SEA internet economy, which is anticipated to reach US$300 billion by 2025 (GMV), according to the investor report referring to Google & Temasek / Bain, e-Conomy SEA 2019, Bank Negara Malaysia 2020 Report. In 2019, the SEA internet economy was recorded at US$100 billion.
- According to the report, 80% of the population of SEA had inadequate access to the internet just over a decade ago. At present, the SEA region has 360 million internet users with 90% accessing internet using their mobile phones.
The SEA region is witnessing growing adoption of digital payments, which is expected to cross US$1 trillion by 2025 and contribute almost one in every two dollars that is expected to be spent in the region, the report highlighted. Usage of credit cards and ATMs is also experiencing a decline as e-money is gaining prominence and accounting for over 50% of all payment volumes.
There has been ~200% growth in e-commerce in the region since 2015. The boom is expected to triple in value by 2025, with large opportunities in Indonesia.
The region is also at a nascent stage with respect to credit options as nearly 200 million people have no banking facilities and almost 300 million people are considered underbanked.
Growing internet dispersion in SEA along with the Government’s encouragement and support for cashless economies is generating a huge opportunity for specialist non-bank financial platforms to cater to credit-famished consumers.
Expanding to More Categories - A Key Business Growth Objective
IOUpay intends to become the leading digital transaction processors in the burgeoning cashless economies of South East Asia.
In order to do so, the company plans to expand from transaction processing to incorporating additional value-added services including mobile banking transactions, bill payments, and digital commerce for leading brands and for their merchants.
The company already has the customers and the technical capability to scale up.
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IOUpay’s Competitive Advantage
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Future Roadmap
In Q4 2020, IOUpay intends to expand digital payment projects in Indonesia and strengthen big brand corp partnerships & merchant networks. The company aims to close the global partnership expansion & digital cash partnerships for Mobile Banking Division.
In Q1 2021, the company expects customers from cross-market Malaysian BNPL & bill payment space to drive further revenue growth. Moreover, it plans to focus on the Consumer App.
In Q2 2021, the company’s focus would be on the IOUpay Rewards Program Malaysia along with Compliance approvals for Indonesia BNPL partnerships. Platform focus includes Consumer App with cross-selling features & referral program.
