- IOUpay (IOU) is one step closer to building a “highly active and loyal merchant network” thanks to an agreement with payment provider MYP1
- The strategic teaming agreement allows MYP1’s 15,000 merchants to use IOUpay’s buy now, pay later service
- An integration of the two systems will begin in April, followed by a rollout to an initial 2800 merchants over the rest of this year
- IOUpay is not required to pay a consideration to MYP1, and the agreement may be renewed following its one-year term
- IOUpay is up 5.19 per cent to $0.40 per share
IOUpay (IOU) is one step closer to building a “highly active and loyal merchant network” thanks to an agreement with payment provider MYP1.
According to the terms of the deal, which may be renewed after its initial one-year term, Malaysia-based MYP1’s 15,000 merchants across Southeast Asia will be able to use IOUpay’s buy now, pay later (BNPL) service to process payments.
“MYP1 represents a unique opportunity to fast track our market penetration across large numbers of qualified merchants seamlessly by our BNPL payment services now being offered as the major payment alternative to cards and e-wallets through MYP1’s existing merchants and Smart POS terminal installation base,” said Khong Kok Loong, CEO of IOUpay.
IOUpay will not be required to pay a consideration to MYP1, and an integration of the two systems is expected to begin in April. This will be followed by an initial rollout to 2800 of MYP1’s merchants over the course of 2021, with the remaining merchants to be vetted for a rollout in 2022.
Chris Lee, CEO of MYP1, said he expects IOUpay’s platform to be well received by the company’s merchants.
“IOU’s BNPL service offering comes at a time when merchants and consumers are all moving to contactless payments so we are excited to see a whole new BNPL driven boost to payment volumes across our merchant networks from this partnership,” he added.
The deal with MYP1 follows a similar agreement with iPay88 that was signed in early march this year, under which iPay88’s 45,000 online merchants and 20,000 in-store merchants will be able to use IOUpay’s BNPL service.
As the dominant online payments brand in Malaysia, iPay88 accounts for around half of the country’s online transaction and payment market, with more than 360 million transactions processed in 2020 representing approximately $10 billion.
IOUpay is up 5.19 per cent to $0.40 per share at 11:29am AEST.