IOUpay shares up 9pc on Shopify deal
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IOUpay Asia has gone live with leading e-commerce platform Shopify as it moves to capitalise on growing BNPL volumes.
Malaysia focused fintech, IOUPay (ASX:IOU), has announced its subsidiary, IOU PAY (ASIA) Sdn Bhd has made its myIOU BNPL offering available to Malaysian merchants operating on the payments platform of Shopify Commerce Singapore LTD PTE, a subsidiary of Canadian multinational e-commerce company Shopify Inc. (NYSE&TSE:SHOP).
The move will make myIOU available to consumers transacting through myIOU merchants who utilise Shopify for e-commerce payments processing.
Shopify provides a proprietary e-commerce platform for online stores and retail point-of-sale (POS) systems to more than 1.7 million businesses in more than 175 countries.
During 2021, Shopify merchants processed over US$175 billion in gross merchandise value (GMV).
IOUpay Asia has entered into a Shopify revenue sharing agreement for payments developers with Shopify.
The agreement enables IOUpay Asia to develop and offer payments applications such as the myIOU BNPL offering as part of Shopify’s program to provide electronic and POS payment processing services to merchants.
There is no consideration paid by the company to Shopify to enter into the agreement.
Terms are customary for service agreements with large or sophisticated providers and key relevant terms including an initial term of one year.
The agreement will automatically renew for one year on the anniversary unless either party provides a notice to terminate the agreement.
Either party may terminate by providing 30 days written notice. Shopify requires payments developers to be PCI-DSS compliant, a certification which IOU recently announced.
Integration work has been undertaken for seamless operation of myIOU as a payment option on the Shopify platform.
The company is briefing its merchant services team so that they can market this new functionality to existing and prospective merchant customers.
From 1 Apr to May 15, IOU transacted $2,041,256 on its BNPL platform, an increase of 15% from the 16 Feb to 31 Mar period.
IOUpay’s head of marketing Gwen Khor said the company was thrilled to make available myIOU BNPL payment solutions on Shopify’s rapidly growing and market leading e-commerce payment platform to further grow its BNPL volumes.
“The addition of this functionality not only increases the company’s ability to capture a larger share of our merchants’ customer purchases but introduces myIOU as a payment option to new communities of digital consumers and aids our marketing efforts to prospective new merchants,” she said.
The IOUpay share price is up more than 9% today to 6 cents.
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