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IOUPay expands BNPL service in Malaysia after signing a strategic deal with senangPay
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IOUPay’s agreement with Malaysia’s senangPay will give the company immediate access to 15,000 potential new merchants.
Malaysia-focused fintech IOUpay (ASX:IOU) has made its myIOU BNPL (buy now pay later) services available to Malaysian customers who are buying from merchants on the senangPay payments platform.
This was made possible after IOU’s subsidiary IOUpay Asia entered into a Master Merchant Agreement with Simplepay Gateway, the operator of senangPay, on a non-exclusive basis.
The agreement allows merchants on the platform the option to offer their customers use of myIOU BNPL to pay for their transactions.
Under the deal, Simplepay will be responsible for originating any applications from merchants who wish to apply for the myIOU BNPL services, as well as onboarding them and providing support.
Upon activation, Simplepay will ensure the myIOU logo and other branding materials are properly displayed at the merchants’ locations, websites and platform as instructed by IOUpay Asia.
“We are delighted to make available myIOU BNPL payment solutions to senangPay’s growing community of e-commerce merchants,” commented Aaron Lee, IOUPay’s CEO.
“Consistent with the company’s strategy to establish relationships with reputable partners who manage large communities of merchants and consumers, the agreement with Simplepay Gateway expands myIOU coverage of merchants for our existing customers and also introduces myIOU to many more potential new users.”
A strategic deal
Simplepay Gateway was established in Malaysia in 2015 with a core business in payment services including payment gateway services and a proprietary e-commerce payment platform for online stores.
Its other business lines include Tracking System Asset Management and premium gifts products.
The online payment gateway and e-commerce payment platform is operated under its trading name, senangPay.
There are currently over 15,000 online merchants operating on the senangPay platform.
IOUpay Asia will have absolute discretion in the approval of merchants onboarded by Simplepay, and referral fees will be paid to Simplepay for margin income earned over and above an agreed schedule of rates.
The agreement is for an initial term of one year, which will then automatically renew for another year on the anniversary unless either party provides three months’ written notice to terminate.
There will be no initial payments made by either party to enter the deal.
Making inroads
IOUPay has made rapid inroads into its strategic growth plans recently.
Last month, IOUpay Asia signed a marketing collaboration agreement (MCA) with Bank Simpanan Nasional (BSN), allowing the bank to promote myIOU’s BNPL offering and BSN’s card products across its consumer and merchant networks.
Earlier, IOUpay Asia also entered into a new strategic partnership with I.Destinasi Sdn Bhd (IDSB) to target Malaysia’s civil servants.
The launch of this partnership involving a market-first product initiative aimed at capturing newly hired federal government employees highlights the strategic value of IOU’s investment in IDSB, which it announced in September last year.
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.
