The IOUpay Limited (ASX: IOU) share price is lifting today after the company shared news of its latest agreement. IOUpay will partner with MYP1 Commerce to connect users of MYP1's Smart point of sale (POS) system with IOUpay's buy now pay later (BNPL) platform.
Today's news comes at a good time for the IOUpay share price, which slumped last month. Its year to date gain fell from 205% at the end of February to 102.5% at the time of writing. Currently, its shares are up 3.9%, trading at 40 cents.
Let's look closer at the BNPL provider's new partnership.
IOUpay's new POS integrated service
IOUpay has signed a strategic teaming agreement with MYP1 for a renewable year-long term within which MYP1 will integrate IOUpay into its Smart POS system, allowing merchants and customers to use the BNPL service seamlessly.
MYP1 is chiefly a provider of POS and payment systems in Malaysia and Southeast Asia. More than 15,000 merchants across Malaysia use MYP1-owned and maintained Smart POS systems.
Under the agreement, MYP1 will refer its merchants to IOUpay's services, which will be integrated into MYP1's Smart POS system.
The integration of IOUpay into MYP1's Smart POS systems will allow contactless BNPL payments. IOUpay believes this will make it the preferred BNPL service for merchants.
The announcement stated most users of MYP1's Smart POS systems were in-store merchants. Thus, the partnership won't see its BNPL services extend significantly into the e-commerce field.
The integration of IOUpay's service and MYP1's Smart POS system will begin this month. It will initially be rolled out to 2,800 select merchants. Both companies plan to roll out IOUpay integrated Smart POS systems to all merchants using MYP1's system in 2022.
Commentary from management
IOUpay CEO Khong Kok Loong welcomed the partnership, saying:
MYP1 represents a unique opportunity to fast track our market penetration across large numbers of qualified merchants seamlessly by our BNPL payment services now being offered as the major payment alternative to cards and e-wallets through MYP1's existing merchants and Smart POS terminal installation base.
We see this as a mutually beneficial partnership to drive BNPL transaction volumes and smart POS terminal installations and build a highly active and loyal merchant network.
MYP1 CEO Chris Lee added:
We know the team at IOU well and believe their buy now, pay later platform offering will be well received by our merchants and their customers.
IOU's BNPL service offering comes at a time when merchants and consumers are all moving to contactless payments so we are excited to see a whole new BNPL driven boost to payment volumes across our merchant networks from this partnership.
IOUpay share price snapshot
The past month has been challenging for the IOUpay share price. However, the past 12 months have provided a good amount of cushioning from volatility, with the company's share price up an extraordinary 3,950% over that period.
IOUpay has a market capitalisation of around $212 million, with approximately 551 million shares outstanding.