- Digital payment specialist IOUpay (IOU) has successfully secured a Malaysian money lending licence for just under $1.4 million
- The licence will allow IOU to operate buy now, pay later (BNPL) services for consumers and merchants in the region as well as consumer loans
- IOU acquired the licence via the purchase of 100 per cent of all the ordinary shares in MA1951 licence holder Sibu Kurnia Marine
- Purchasing the licence holder cost the company $4,300,000 Malaysian Ringgit (around A$1.38 million )
- Commenting on the acquisition, IOU’s chairman said the purchase was a critical milestone in expanding its offering across South East Asia
- Shares in IOUpay are up 2.86 per cent at 18 cents each
Digital payment specialist IOUpay (IOU) has successfully secured a Malaysian money lending licence for around $1.4 million.
It’s a crucial step for the business, as the licence allows IOU to operate buy now, pay later (BNPL) services for consumers and merchants in the region.
The licence also allows the company to offer consumer loans as well, under the Money Lending Act and Financial Services Act of Malaysia.
IOU acquired the lending licence via the purchase of 100 per cent of all the ordinary shares in MA1951 licence holder Sibu Kurnia Marine.
It paid $4,300,000 Malaysian Ringgit (around A$1.38 million) from its cash reserves to acquire the much-needed accreditation.
The company also employed two independent experts to verify the consideration it was offering and both stated that the price was below market value.
Commenting on the licence acquisition, IOU Chairman Lee Chin Wee said it was a critical milestone for the company and its expansion plans.
“The completion of this critical milestone ahead of schedule enables the company
to now accelerate its plans to capitalise on the significant market opportunities in
the BNPL and digital payments sectors,” he said.
“Notwithstanding the regional COVID-19 environment, including the revised
Movement Control Order (MCO) implemented by the Malaysian Government last
week, the market conditions and demand for our product offerings remain strong,
which is consistent with the continued increased uptake in online purchases and
payments across the South East Asia region last year,” he added.
Shares in IOUpay are 2.86 per cent in the green on Tuesday morning, trading at 18 cents each at 11:20 am AEDT.