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

The IOUpay Ltd (ASX:IOU) share price is pushing higher on Tuesday after the release of an operational update this morning…

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The IOUpay Ltd (ASX: IOU) share price is pushing higher on Tuesday following the release of an operational update.

In afternoon trade the fintech and digital commerce software solutions provider's shares are up 3% to 16 cents.

hand on touch screen lit up by a share price chart moving higher

Image source: Getty Images

What did IOUpay announce?

This morning the company released a comprehensive operational update covering its business activities and new product development initiatives.

According to the release, the company has signed merchant service agreements with two payment gateway providers in Malaysia. This includes one of the top three in Malaysia based on the number of active merchants and customer payment transactions.

It has also now received approval from the card issuing and merchant acquiring partnership bank of one of the two payment gateways. This enables IOUpay to process buy now pay later transactions for its merchant customers using credit and debit card payments processed by the company's platform.

IOUpay advised that the bank is one of Malaysia's largest commercial banks with 7,000+ ecommerce merchants and 10,000 instore merchants.

What else is happening?

IOUpay has signed a subscription for service agreement with Malaysia's leading credit reporting agency, CTOS Data Systems.

It has also been approved and certified by CTOS as a CTOS Trusted Party. This makes it one of approximately 150 entities in Malaysia with the certification. The others comprise banks, major non-bank financial institutions, credit card companies, and insurance companies.

CTOS is understood to have approximately 75% market share of the credit reporting market in Malaysia. It has information on 2 million companies and 15 million individuals, 7 million unique legal records, and 4 million trade references.

Buy now pay later platform enhancements.

Finally, the company also revealed that it has completed the development and testing of core system functionality and interoperability of its buy now pay later transaction processing platform and service offering as scheduled.

These enhancements have been made to the Customer, Merchant, and Administration Systems. They include essential and proprietary system access and security, user feature sets and interface, combined with processing, administration, compliance and reporting functionality.

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.

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