Image source: Kaspars Grinvalds,ShutterstockSummary
- Internet penetration and adoption is driving unprecedented changes in consumer behaviour in the South-East Asia (SEA).
- There are huge growth opportunities across the SEA in markets with limited credit options for consumers.
- IOUpay has been at the forefront of developing and offering digital payment solutions in the SEA region.
- The Company aims to become one of the leading digital transaction processors in the SEA.
FinTech companies are leading a major turnaround in the payments industry with product innovation and convenience in transactions. The disruption in the digital payment ecosystem has been largely influenced by technology amid the pandemic times. Moreover, with the roll-out of unique payment products and services, the dynamics in the payments industry are changing.
Undoubtedly, this disruption would be impossible without the penetration of internet services in the most remote areas of the world. The number of users of mobile internet has substantially increased over the recent years.
PREVIOUS UPDATE: IOUpay teams up with MYP1 to expand BNPL footprint
Around a decade ago, access to internet was limited to the lesser number of people living in the South-East Asia (SEA). However, with technology taking a leap, there has been a sprawling growth in the number of internet users in the region. At present, there are roughly 360 million internet users in the region, of which 90% primarily use mobile phones to connect to the internet, reports have revealed.
Moreover, a sharp decline has been seen in the usage of credit cards as e-money surges to over half of all payment volumes. The accessibility to internet in the SEA region remains the key driving force for the unprecedented shift in consumer behaviour.
Looking forward, the internet economy is anticipated to triple again and hit around USD300 billion by 2025, as per the Digital Payments in SEA Presentation in March 2021 from IOUPay Limited.
IMPORTANT UPDATE: IOUpay continues to spread its BNPL wings across South East Asia
IOUpay poised to cash in on opportunities in the SEA
ASX-listed FinTech player operating in the SEA region, IOUpay Limited (ASX:IOU) has witnessed these transitionary times. The Company has been cracking deals after deals to grab the emerging opportunities in the SEA region.
In tandem, the Company is also expediting operations to enhance its platform offering for a better experience of the users.
Some of the key highlights that make IOU a promising player in the SEA region are depicted below.
DID YOU READ: IOUpay (ASX:IOU) in Catbird Seat to Cash In on Digital Payments Boom
Key Drivers of IOU’s Growth
With a goal to become one of the leading digital transaction processors in the budding cashless South-East Asian economy, IOU remains on track to expand from transaction processing to higher value-added services, including the following:
- Smart short-term revolving Buy-Now-Pay-Later (BNPL) instalment offerings
- Bill payments
- Mobile banking transactions
- Digital commerce for big brands and their merchant distribution networks
IOU’s business is divided into two categories, namely mobile banking and digital payments, with newly added features of BNPL processing and consumer loan payment processing. Besides boosting merchant revenue and customer engagement, the IOU Pay platform offers a range of benefits for merchants and customers.
Some of the compelling benefits of the platform include secure and smart, faster and smarter approval process, proven processing engine and match to market.
RELATED : IOUpay Limited’s (ASX:IOU) Largest Single Raise of $50M to Fire Up Expansion Plans
Forward Plan to Lead the Industry
Presently, IOU is in a sweet spot to benefit from factors like the lack of consumer credit and underbanked population in the SEA region. Moreover, the Company believes that the event of peak credit cards usage has passed and has been taken over by the digital adoption.
IOU's roadmap ahead (Source: IOU Announcement 16/03/2021)
Moving forward, IOU has plans to position the Company as a provider of fully integrated financial services for big brand merchants and their customers across Malaysia as well as Indonesia. The Company’s proprietary best-in-class BNPL platform and upgraded digital payments offerings are focused on boosting competitive advantage, increasing recurring revenue, trimming costs, and securing significant and valuable strategic partnerships.
Overall, IOU is the market leader for secure transaction and payment process operations. The Company currently processes 18+ million transactions every month across Malaysia and Indonesia. IOU looks forward to generating shareholder value through expanding its operations across the booming SEA market.
