Here's why the IOUpay (ASX:IOU) share price is rocketing 30% higher

The IOUpay Ltd (ASX:IOU) share price is on fire on Tuesday after announcing a major deal with EasyStore…

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

At the time of writing, the Malaysia-based buy now pay later (BNPL) provider's shares are up a massive 30% to 26 cents.

This leaves the IOUpay share price trading within sight of its record high of 28 cents.

Why is the IOUpay share price rocketing higher?

Investors have been buying IOUpay shares today following the release of a positive announcement.

According to the release, the company has entered into a merchant referral agreement with EasyStore Commerce. This agreement will enable EasyStore's merchants and end-user customers to utilise IOUpay's BNPL payment services.

What is EasyStore?

The release explains that EasyStore was established in Malaysia in 2013 to capitalise on the fast-growing market needs for merchants and their customers to leverage smarter access to multiple ecommerce sales channels, social media, and payment platforms.

EasyStore has since expanded to service more than 7,000 merchants across the South East Asian (SEA) markets, which includes Malaysia, Singapore, Indonesia, Philippines, Thailand, Hong Kong and Taiwan.

In 2020, EasyStore merchants processed over 20 million transactions with a total transaction value (TTV) of approximately A$435 million.

IOUpay's CEO, Khong Kok Loong, commented: "We are delighted to be partnering with online shopping specialist EasyStore to rollout our BNPL offering to merchants and consumers. EasyStore's dedication to real value added merchant services and their SEA focus is an excellent fit with IOUpay's positioning and objectives."

This sentiment was echoed by EasyStore's Co-Founder and Head of Business Development, Alan Kok Kim Lin.

He said: "We are looking forward to partnering with IOUpay to enable our merchants and their customers to have access to the clear benefits of their Buy Now Pay Later payment services. The BNPL service offering is a natural value add for our merchants to grow their businesses."

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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