Douugh shares are on the rise today after the fintech company revealed a partnership agreement. We take a look at the details
The post Why the Douugh (ASX:DOU) share price is soaring 16% today appeared first on The Motley Fool Australia. –
At the time of writing, Douugh shares are exchanging hands for 11 cents, up 15.79%.
What’s driving the Douugh share price higher?
Investors are keen to get hold of Douugh shares as the company expands its reach into the United States.
In a statement to the ASX, Douugh advised it has teamed up with NASDAQ-listed Fiserv Inc (NASDAQ: FISV) for access to its MoneyPass platform.
This will allow Douugh customers to withdraw cash from more than 37,000 ATMs across the US without being charged a transaction fee.
Founded in 1984, Fiserv is a leading global provider of financial technology and services. The company enables money movement for thousands of financial institutions and millions of people and businesses.
Fiserv has 1.4 billion accounts on file, with 100 million digital banking users. More than 12,000 financial transactions per second are made using Fiserv’s services.
Douugh said in today’s release that MoneyPass was recognised as one of the largest surcharge-free networks in the US.
According to a Mercator Advisory group survey released in 2018, 77% of consumers in the US said they would avoid ATM fees where possible.
Under the agreement, Douugh will pay a tiered transaction fee for its customers to use MoneyPass ATMs. The cost of the usage will be offset by the subscription fee Douugh customers pay.
The partnership will run for an initial period of 5 years, starting immediately.
What did management say?
Douugh founder and CEO Andy Taylor welcomed the collaboration, saying:
We are delighted to be partnering with Fiserv to offer this service to Douugh customers. We are constantly looking at ways to improve the overall value of the Douugh banking service and customer experience, as we seek to convince customers to make Douugh their primary checking account.
Fiserv senior vice president of networks, card services, Carol Specogna, added:
ATMs remain a critical customer touch-point and the customer demand for surcharge-free access to their cash is strong and growing. Douugh is providing its account holders with the ability to conduct surcharge-free transactions wherever they travel, while saving them money at the ATM.
The Douugh share price has accelerated by more than 600% since listing on the ASX boards in October last year.
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