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- IOUpay (IOU) is awarded Shariah compliance certification by global Shariah advisory firm Tawafuq Consultancy, opening access to consumers who practice Islam
- Following certification, the company will offer both conventional and Islamic financing, which requires a partitioning of the myIOU portfolio, separate documentation and an Islamic bank account for all Shariah-compliant transactions
- Additionally, the company has signed a deal with PayHalal, a Shariah-compliant payment gateway, to acquire Shariah-principled merchants and buy-now-pay-later transaction payments processing
- The company says it believes these two milestones provide several strategic growth opportunities, including exposure to numerous Islamic populations via expansion into Southeast Asia
- Shares in IOUpay are up 15.28 per cent to 8.3 cents at 10:19 am AEST
IOUpay (IOU) has been awarded Shariah compliance certification by global Shariah advisory firm Tawafuq Consultancy, opening access to consumers who practice Islam
The certification was awarded to IOU subsidiary IOUpay Asia, based in Malaysia — where more than 60 per cent of the population follows the Muslim faith.
Following certification, the company will offer both conventional and Islamic financing, which requires a partitioning of the myIOU portfolio, separate documentation and an Islamic bank account for all Shariah-compliant transactions.
Additionally, the company has signed a deal with PayHalal (Souqa Fintech), a Shariah-compliant payment gateway, to acquire Shariah-principled merchants and buy-now-pay-later (BNPL) transaction payments processing.
Under the deal, PayHalal will acquire and refer to IOUpay Asia merchants who follow Shariah principles onto its platform and offer BNPL payment options consistent with the practices of Islamic finance.
In return, IOUpay Asia will settle with PayHalal each day in a single payment for all myIOU transactions completed with PayHalal merchants the previous day.
The agreement lasts for three years, commencing July 12, and any extension will be automatically renewed for further periods of one year each unless otherwise agreed.
The company said it believed these two milestones provided a number of strategic growth opportunities which included pre-positioning IOUpay for Southeast Asian market expansion with large Islamic populations.
Shares in IOUpay were up 15.28 per cent to 8.3 cents at 10:19 am AEST.
