This presentation is a refreshed version of the presentation that was released to market in October 2020. I noted a few things:
1. The communication used in this presentation is more in-depth that the previous one. Two reasons I believe this has occurred; the first is that the company has hired someone with an understanding of what investors are looking for. The second is because of the progress the company has made re: $50m CR, agreements with EasyStore and iPay88. These developments have allowed the business to flesh out the plan in more detail. Having such definitive direction allows for a more detailed breakdown of details.
2. Actual example and detail about BNPL. Payments plans between 1 and 3 months. Higher margins on longer plans with the average being a 2 month plan at 4% margin. In the example provided we see 37.5% return on equity employed. In accounting, anything of 10% ROCE is considered "good".
3. More focus on bill payments and digital inventories which we are already seeing growth in at present as monthly transactions have increased from 17m up to 20m.
4. Highly experienced executive team with average experience per team member of approximately 20 years. This is extremely important to the success of the business. Notable connections; Eddie Lee (CCO) was president of iPay88 in the Philippines. Lydia Krishnan (SCM) worked at Bank Maumalat and Ambank in senior roles. Lau Teck Huat (CTO) worked closely with major e-wallets including Grabpay, Alipay and WeChat.
5. The relationship with iPay88 goes further than first thought with mentions of expansion into the Philippines which is a key market for iPay88.
6. Outlining the breakdown of unbanked and popular payment methods was a very nice touch to help investors gauge the opportunity. If you missed it here's a clue; it's f**kn huge!
There's even more to unpack but this is the shift from a possible success story to a probable success story. Executive team has connections deep into the SE Asia region, a mountain of cash and a laundry list of merchants to sign up. Look for Q3 numbers for this to pop imo.
If I was a PIL investor I'd be worried about IOU moving in on the Philippines with the support of iPay88. There won't be a partnership or an acquisition imo. Merging these two companies would cause too many issues with business culture and business models.
I checked the IOUpay.com domain last Friday and it wasn't active so that is a development as of this week from what I can ascertain.
(20min delay)