The IOUpay Ltd (ASX: IOU) share price has spiked 13.64% this morning following the company's announcement of a corporate update and investor presentation. At the time of writing, the IOU share price is trading at 25 cents after closing yesterday's session at 22 cents.
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What does IOUpay do?
IOUpay provides fintech and digital commerce software and services in South East Asia (SEA) to enable its institutional customers to securely authenticate end-user customers and process banking, purchase and payment transactions.
The company's core technology platform enables large customer communities to extend their information technology applications to any mobile device and integrate mobile technology throughout their existing business. This includes various features such as:
- Secure communication to existing customers
- Credit scoring
- Customer onboarding
- Bill payments
- Processing purchases and payments
- Account debiting
The company currently services the top 20 banks in Malaysia as well as large telcos and corporates in Malaysia and Indonesia. Its clients choose IOUpay as the integration is seamless, low cost and secure. The platform has capability to e-KYC (electronic know your customer), credit score and approve in advance or at the point of sale.
IOUpay is a small cap company with a market capitalisation of just $80 million and a current cash at bank balance of $2.7 million as at 23 October 2020.
Investment highlights
The IOU share price is on the rise today after the company reported multiple operational highlights in its update. These included:
- IOUpay has become one of the largest mobile banking and payment services providers in Malaysia, currently processing more than 17 million transactions per month.
- Its top tier customers include Citigroup Inc (NYSE: C), Standard Chartered PLC (LSE: STAN), Heineken, Mazda and major telecom providers in Malaysia.
- The company has several new product initiatives to drive growth including digital payments, merchant growth services and a buy now, pay later (BNPL) product.
IOUpay's growth strategy
The company is positioning its platform to be a fully integrated financial services provider for big brand merchants and their customers in Malaysia and Indonesia.
On the mobile banking front, the company aims to grow payment processing and secure banking transactions for consumers through partnership expansions targeting SEA. It also plans to leverage the tailwinds in digital cash through partnerships with the largest e-wall, e-money and digital banking operators.
Digital payments is also a significant space that IOUpay aims to capitalise on. The company intends on offering a BNPL product as well as expanding existing product offerings to a broad SEA market.
The investor presentation provided a roadmap for commercial activity and platform launches. This includes expanding its digital payment projects in Indonesia in Q4 2020, cross-market Malaysian BNPL and bill payment customer bases in Q1FY21 and a rewards program in Q2FY21.
Overall, the company is in its early days but believes that SEA represents a huge market opportunity with significant growth potential in digital payments.
