Insights

Why the Douugh (ASX:DOU) share price is surging 8% this morning

The Douugh Ltd (ASX: DOU) share price is surging after the company announced the launch of a new instant virtual card. Here are the details.
The post Why the Douugh (ASX:DOU) share price is surging 8% this morning appeared first on The Motley Fool Australia. –

rise in asx share price represented by one hundred dollar notes flying freely through the air

The Douugh Ltd (ASX: DOU) share price is surging in early morning trade. This comes after the company announced it has launched a new instant virtual card. At the time of writing, the financial wellness app provider’s shares are up 8.1% to 20 cents.

What did Douugh announce?

The Douugh share price is on the move as investors appear pleased with the company’s latest update.

According to this morning’s release, Douugh has launched its instant virtual card push provisioning in partnership with Mastercard.

Push provisioning is a type of technology that allows the user to link their card details within the app to a digital wallet. This eliminates the obsolete method of having to input the card numbers manually into the smartphone.

The new contactless payment method seeks to improve the customer experience through significantly reducing wait times to begin making purchases. Traditionally, it takes up to 10 days to receive a physical card, and sometimes longer due to COVID-19 supply chain delays. However, now customers can be instantly issued a virtual card and add it directly to their mobile wallet.

Douugh believes this will lead to improved customer activation rates. This is because the consumer banking fintech is one of the first to offer this feature in the United States.

According to a Mastercard survey, eight out of ten people stated that they use some form of contactless payment method. Most of these consumers explained that safety and security were the main reason for the digital adoption.

Management commentary

Douugh founder and CEO Andy Taylor touched on the company’s instant virtual card launch, saying:

We are delighted to announce the launch of push provisioning. This is the achievement of yet another critical milestone for the business. It allows us to dramatically shorten the cycle time for customers to be able to use the Douugh service.

As we see the US catch up with Australia in terms of the adoption of contactless mobile payments, it’s been vital for us as a mobile banking platform to be able to become digital first in how we facilitate the payment experience at point of sale.

About the Douugh share price

Since its listing in October last year, the Douugh share price has rocketed by almost 1,000%. However, year to date, Douugh shares have increased by only 8%.

On current valuation grounds, Douugh has a market capitalisation of around $66 million, with approximately 359 million shares on issue.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Douugh (ASX:DOU) share price is surging 8% this morning appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!