The Douugh Ltd (ASX: DOU) share price is on the move on Wednesday.
In morning trade, the financial wellness app company’s shares are up 9% to 12 cents.
However, despite this gain, the Douugh share price is still down almost 30% in 2021.
Why is the Douugh share price jumping?
The Douugh share price was given a boost this morning by the release of an announcement.
According to the release, the company has formed a three-year strategic alliance with OFX Group Ltd (ASX: OFX) to offer its customers bank-beating foreign exchange services.
Douugh intends to start by offering brokerage-free US single stock and ETF trading via its recently acquired Goodments app. After which, it may extend its alliance to offer international money services as an integrated feature in the Douugh banking app, providing access to over 50 global currencies.
The release explains that the Douugh’s customers will pay OFX a foreign exchange fee so they can then buy US securities. OFX will then pay a portion of the fee to Douugh in the form of a revenue share.
Douugh’s CEO, Andy Taylor, commented: “We are delighted to announce this exciting partnership with OFX. They have invested a lot in building a robust platform to support fintechs to build and integrate new customer offerings. FX will become a key component of our platform over time as we look to facilitate investing in US securities, not to mention helping customers move money around the world.”
While the financial impact of the new partnership is indeterminable at this stage, management believes it is material given that it creates a new revenue line for the company. It also believes commission-free brokerage for single stock and ETF trading is of significant interest to its target market. As a result, it is expecting a strong uptake once its Goodments app is relaunched with the features.