The IOUpay (ASX:IOU) share price is lifting today. Here's why

The IOUpay Limited (ASX: IOU) share price is up as IOUpay shared news its agreed to integrate its BNPL service with MYP1's Smart POS systems.

| More on:
Female cafe employee accepting a card as payment

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Motley Fool contributor Brooke Cooper 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.

More on Share Gainers

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Boss Energy, Core Lithium, Latin Resources, and Santos shares are rising today

These ASX shares are having a good finish to the week. But why?

Read more »

Happy woman in purple clothes looking at asx share price on mobile phone
Share Gainers

Why Invictus Energy, Perpetual, Polynovo, and Zip shares are charging higher

These ASX shares are catching the eye on Thursday. What's going on?

Read more »

two men in mining hats shake hands on a deal with gas pipelines in the background, indicating a deal between Senex and 29 Metals
Share Gainers

Guess which ASX All Ords share just leapt 59% on a new gas discovery

Investors are bidding up the ASX All Ords energy share following a significant gas discovery in southern Africa.

Read more »

Businesswoman whispering in male colleague's ear as he looks surprised
Share Gainers

Up 118%: Is this 'high quality' stock the best-kept secret on the ASX 200?

Why are these pharmaceutical shares turning heads at the moment? The Elvest team explains.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Chalice Mining, Core Lithium, Perpetual, and Polynovo shares are racing higher

These ASX shares are having a very strong session on Wednesday. But why?

Read more »

A young boy points and smiles as he eats fried chicken.
Share Gainers

'Double-digit earnings growth': 2 fast-rising ASX shares not too late to buy

Get on these stocks before all their potential is realised, say Celeste analysts. So what are you waiting for?!

Read more »

Top 10 blank list on chalkboard
Share Gainers

Here are the top 10 ASX 200 shares today

It was back to reality for ASX shares today...

Read more »

Beautiful young couple enjoying in shopping, symbolising passive income.
Share Gainers

Why Droneshield, Origin, ResMed, and Whispir shares are pushing higher

These ASX shares are having a good time despite the market weakness.

Read more »