Insights

Why the IOUpay (ASX: IOU) share price tumbled 40% in March 

The IOUpay Ltd (ASX: IOU) share price slumped 40% in March. Should investors be worried about the emerging South East Asian BNPL?
The post Why the IOUpay (ASX: IOU) share price tumbled 40% in March  appeared first on The Motley Fool Australia. –

man hitting digital screen saying buy now pay later

The hype surrounding South East Asia’s next buy now pay later (BNPL) provider,  IOUpay Ltd (ASX: IOU) saw its share price surge as high as 250% this year. But in an unexpected turn of events, the IOUpay share price suddenly slumped. Down from 61 cents to 37 cents, or a decline of 40% in March. 

Why the IOUpay share price underperformed in March 

Broader weakness for tech and BNPL shares 

Rising bond yields and broader market volatility made it a challenging month for the tech sector.  This resulted in diverging performance between the S&P/ASX Information Technology (INDEXASX: XIJ) index which fell 5.80%, compared to the flat ASX 200.

Such weakness may have resulted in the IOUpay share price swimming against the tide despite key milestones including partnering with EasyStore to provide BNPL services, a merchant referral agreement with iPay88 and an expansion of its leadership team.

By comparison, large cap BNPL shares also faced heavy selling pressure with the likes of Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) falling a respective 20% and 33% in March. 

What’s next for the IOUpay share price? 

Eyes on revenue growth with new BNPL services 

IOUpay strives to become one of the leading digital transaction processors in South East Asia. This involves providing value add services such as smart short term revolving BNPL instalment offerings. In addition to services such as bill payments, mobile banking transactions, and digital commerce.

The company’s partnership with EasyStore resulted in a significant re-rate in valuation. This saw the company transform from a market capitalisation of approximately ~$90 million to $210 million. All eyes will be on the company’s ability to grow key BNPL metrics.  In particular, gross merchandise value, customers, and merchants. 

Tailwinds in the SEA market 

IOUpay has taken the first-mover advantage for BNPL in the SEA region. The company believes it can leverage its market-leading position for secure transaction and payment processing operations and existing customer data for rapid customer acquisition. This is further supported by its views on the SEA market: 

The “Sweet Spot” for BNPL is larger in SEA due to the lack of consumer credit and underbanked populations overlaid with mobile population levels and the ever increasing growth in e-payments which facilitate BNPL offerings and adoption rates.

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 Kerry Sun 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 IOUpay (ASX: IOU) share price tumbled 40% in March  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!