Why the IOUpay (ASX:IOU) share price is charging 13% higher today

The IOUpay Ltd (ASX: IOU) share price is charging higher following the release of an announcement. Here’s what you need to know…
The post Why the IOUpay (ASX:IOU) share price is charging 13% higher today appeared first on The Motley Fool Australia. –

beat the share market

The IOUpay Ltd (ASX: IOU) share price has been a strong performer on Tuesday morning.

At the time of writing, the Malaysia-based buy now pay later (BNPL) provider’s shares are up 13% to 68.5 cents.

Why is the IOUpay share price charging higher?

Investors have been buying IOUpay shares following the release of an announcement this morning.

According to the release, the company has entered into a Merchant Referral Agreement with iPay88. The agreement will see IOUpay provide iPay88’s merchants and end-user customers with BNPL payment services.

IOUpay advised that the two parties have entered into a one-year renewable term. Positively, there is no consideration paid by IOUpay to iPay88 for entering into this agreement.

What is iPay88?

The release explains that iPay88 is the dominant online payments brand in Malaysia.

In 2020, its merchants processed over 360 million transactions across iPay88’s payment gateway network with a total transaction value (TTV) of approximately A$10 billion.

This represents 50% of the total online transaction and payment market in Malaysia, as reported by iPay88 on 16 November 2020.

The iPay88 network currently services more than 45,000 online merchants and 20,000 in-store merchants in Malaysia. It also has operations firmly established across the South East Asian (SEA) markets of Indonesia, Philippines, Thailand, Vietnam, Cambodia, and Bangladesh.

What now?

IOUpay and iPay88 will commence integrating systems with BNPL payment processing capabilities in March. After which, the onboarding of merchants and approved customers is planned for April.

The release advises that the merchant onboarding and rollout will initially consist of selected priority merchants for quality control purposes.

IOUpay’s CEO, Mr Khong Kok Loong, commented: “iPay88 are the clear market leader in the online payments industry in Malaysia with a strong presence across South East Asia. We are delighted to be partnering with iPay88 in this landmark deal to rollout our BNPL offering to merchants and consumers and are committed to building a long term strategic relationship”.

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 James Mickleboro 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 is charging 13% higher today 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!