IOUPay (ASX:IOU) share price soars 10% on news of BNPL offering

Here’s what’s driving the IOUPay share price higher today.

| More on:
three happy shoppers pose together with their shopping bags thanks on a street.

Image source: Getty Images

The IOUPay Ltd (ASX: IOU) share price is gaining after the company released an update on its buy now, pay later (BNPL) offering.

IOUPay released its myIOU BNPL service at the end of the June quarter. Today, the payments provider announced it has already seen nearly $3.5 million worth of transactions processed through myIOU.

Right now, the IOUPay share price is 9.43% higher than its previous closing price. The company’s shares are swapping hands for 29 cents apiece.

Additionally, today is the first day this week IOUPay’s shares could be traded on the ASX.

The company initiated a trading halt on Monday morning after it became aware of a procedural error when it issued 20 million new shares in March.

The Federal Court granted the company relief from the error yesterday and its stock was unfrozen after the market closed.

Let’s take a closer look at the news driving the IOUPay share price today.

myIOU update

The IOUPay share price is booming on its return to the ASX.

Today, IOUPay told the market $2.9 million worth of purchases were processed through its myIOU service between 1 July and 16 August. That adds to the $584,459 that was spent through myIOU in June.

Of that, $299,079 has gone straight into IOUpay’s pockets.

Additionally, 1,492 merchants have signed onto the service, while 7,372 people have downloaded the myIOU app.

IOUPay is planning to launch a digital marketing strategy that will include social media influencers and the “Face of myIOU”, award-winning international singer-songwriter Yuna.

Yuna’s music has reached number 3 on the US Billboard Chart and she has previously worked with brands including Malaysian Airlines.

IOUPay expects the marketing strategy to drive demand for myIOU in Malaysia.

The company also announced testing of the integration of Razor Merchant Services’ payment system and that of IOUPay has been pushed back to September. The delay has been brought about by COVID-19 restrictions in Malaysia.

IOUPay share price snapshot

The IOUPay share price has been soaring lately.

It has currently gained 75% year to date. It is also 705% higher than it was this time last year.

Should you invest $1,000 in IOUPay right now?

Before you consider IOUPay, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and IOUPay wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 BNPL shares