IOUpay positioned for growth after securing Malaysian money lending licence
Link copied to
Special Report: IOUpay has secured a Malaysian money lending licence, allowing it to comply with the country’s lending laws and provide BNPL services to consumers and merchants.
IOUpay (ASX:IOU) has hit an important milestone in its plans for growth with the acquisition of a Malaysian money lending licence which will allow it to provide buy now pay later (BNPL) services to consumers and merchants in Malaysia.
The licence, which is necessary to comply with lending laws in Malaysia, was secured through the acquisition of another licence holder for $1.375 million and allows IOUpay to push forward with BNPL market opportunities.
Chairman Lee Chin Wee said the licence puts IOUpay in a great position to capitalise on gaps in the South East Asia market.
“The completion of this critical milestone ahead of schedule enables the company to now accelerate its plans to capitalise on the significant market opportunities in the BNPL and digital payments sectors as highlighted in our corporate presentation and investor update last year,” he said.
“Notwithstanding the regional COVID-19 environment including the revised Movement Control Order (MCO) implemented by the Malaysian Government last week, the market conditions and demand for our product offerings remain strong which is consistent with the continued increased uptake in online purchases and payments across the South East Asia region last year.”
IOUpay has identified significant growth opportunities in the SEA region where a third of the population is un-banked and there has been a 206% increase in the number of active ecommerce users since 2015.
IOUpay also recently announced Merchant Service Agreements with two prominent Payment Gateway providers in Malaysia, as well as one of Malaysia’s leading banks, which will enable it to effectively process BNPL payments as approved by Visa and Mastercard.
IOUpay is one of the largest mobile banking and payment services providers in Malaysia, currently processing more than 17 million transactions per month.
This article was developed in collaboration with IOUpay, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.