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IOUpay Limited (ASX:IOU) eyes dominance in SEA Digital Payment Market

  • November 26, 2020 06:34 PM AEDT
  • Hina Chowdhary
    Director, Equities Research Hina Chowdhary
    1456 Posts

    Hina Chowdhary is the Director, Equity Research at Kalkine and has an extensive experience of about 15 years in the area of Research, which includes 5+ years in Equities Research particularly.She has earned a Master of Science degree from the renowne...

IOUpay Limited (ASX:IOU) eyes dominance in SEA Digital Payment Market


  • IOUpay Limited (ASX:IOU) has experienced more than 35x price rally in the last six months.
  • The Company has been undertaking several initiatives towards its target of becoming a prominent leader in the payment processing space in South East Asia.
  • With a large unbanked population, South East Asia is gradually opening up to digital payments amid COVID-19-led restrictions.
Gold MTF non-AMP

The last six months have been quiet exciting for IOUpay Limited (ASX:IOU) as the company experienced more than 35x price rally on the ASX, giving its investors significant capital gains. The company has been in the news for all the right reasons – from name change to advent to the BNPL market to raising funds for further technological and geographical expansion. Not to mention, there has been management rejig/appointments to create a more robust and strong leadership.

The Company known for processing more than 17 million online payment and consumer interactions in a month and serving the top 20 leading banks based out of Malaysia, is eyeing business expansion.

Interesting Read: IOUpay Limited (ASX:IOU) Ends September Quarter with Panache

IOUpay is focusing on multiple aspects to establish itself as a market leader in digital transaction processing in the booming cashless economies of South East Asia.   

A 360-Degree Rebranding

The revamp started with the name change that secured approval from shareholders at the EGM on 30 September. From Isentric Limited, the Company became IOUpay Limited. Also, its ticker was changed to ‘IOU’ from ‘ICU’.

Along with the name change, the company also reshuffled its top leadership positions with new people joining the board and executive team to bring in more experience and commitment towards achieving the business expansion goal. IOUpay’s Malaysian operations roped in Khong Kok Loong as the CEO, Kenneth Kuan as the CFO, and Lau Teck Huat as the CTO.

Focus on South East Asia Market

IOUpay has embarked on a journey to become a market leader in the payment processing space in South East Asia.

South East Asia has a huge number of underbanked consumer base. The company expects that the COVID-19 restrictions will coerce the SEA population towards digital purchase and payments. The pandemic has been boosting the digital payment space since the lockdown. There has been a significant digital boost in the region with internet users expected to reach 420 million in 2024 from 360 million in 2019, according to IOU ASX update, dated 28 October 2020.

Cashing in on the Strong Demand for BNPL Services

IOU recently entered the much-talked-about Buy Now Pay Later (BNPL) market, introducing services in the Malaysian market. Loaded with proven platform capabilities and strong commercial rapport with leading brands, IOU claims to be well-positioned to expedite its identified growth prospects in the flourishing Indonesian digital payments market.

Expanding Product Offerings

IOUpay has also undertaken significant technological improvements in its platform. The aim is to develop a platform that can allow origination, authentication and smooth processing of mobile banking and digital payments for B2B and B2C transactions in the Indonesian market. The platform is also designed to facilitate prepaid inventory supply and sale, and reconciliation of portfolio and individual accounts.

The Company is also evaluating new platform modules for payment gateways. For consumers, the company is offering internal e-KYC admin that enables e-KYC sign-in and electronic authentication, selection of account and tenure, and many more. For merchants, the platform will allow onboarding of customers and processing of BNPL transactions through app and payment gateway modules.

Related Read: Digital Transaction Processor IOUpay (ASX:IOU) to Spread Wings with Higher Value-Added Services

Strengthened Cashflow

In November, IOU announced a successful capital raise of A$10,055,300 supported by its new and existing investors. The A$10.05 million private placement was raised in two tranches with A$3 million raised from Tranche 1 and A$7.01 million raised from Tranche 2.

The offering price of the shares stood at A$0.16 per share when the tranches were combined. The placement involved the issue of 62,845,625 ordinary shares. The company plans to use the proceeds for working capital and expediting new product development.

Read: IOUpay (ASX:IOU) Raises $10 Million, Shares Soar By 10%

On 26 November 2020, IOU closed at A$0.180, with a market capitalisation of A$78.10 million.



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