Join our daily newsletter At The Bell to receive exclusive market insights
- IOUpay (IOU) has marked the June quarter with the launch of its buy now, pay later platform and steady income amid an influx of one-off expenditures
- Cash outflows and customers receipts totalled roughly $1.7 million each
- IOU says the increased expenditure was predominantly attributable to the launch of its BNPL product
- Cash and equivalents totalled $51.4 million, which is enough to see it through the next 30 quarters based on current spending levels
- IOUpay shares are down 1.14 per cent to trade at 21.8 cents
IOUpay (IOU) has marked the June quarter with the launch of its buy now, pay later platform and steady revenue amid an influx of one-off expenditures.
The ASX-lister said it already had 1302 merchants referred and individually signed since launching myIOU in June and is averaging over 500 merchants per week.
According to IOU the majority of these merchants are online due to COVID induced delays in-store merchant rollouts in Malaysia.
Total transaction value for the BNPL platform came in at $584,459 with net transaction revenues of $48,413.
IOU said customer receipts remained buoyant at $1.7 million, while cash outflows totalled roughly the same in comparison to $617,000 in the previous quarter.
IOU affirmed this increase was predominantly due to its BNPL product launch which totted up an extra $640,000 in additional costs consisting of merchant payouts and additional staffing costs.
Further expenditures included investment into a receivables management system a share registry transitions and an independent expert report.
Cash and equivalents clocked in at $51.4 million by the end of the quarter, which is enough to see it through the next 30 quarters based on current spending levels.
Looking ahead the company said it will maintain its focus on onboarding online merchants while in-store activities remain limited amid COVID-19 restrictions.
IOUpay shares were down 1.14 per cent at 1:47 pm AEST to trade at 21.8 cents.
