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Fortifying its footprint in the BNPL space, IOUpay Limited (ASX:IOU) has crossed another landmark with a new merchant referral agreement.

In an upbeat market update, IOU has announced a partnership with online shopping specialist EasyStore Commerce Sdn Bhd to empower the latter’s merchants and end-user customers to use its BNPL payment services.

The significant announcement seems to have attracted strong investor interest with IOU stock soaring 15% to trade at AUD 0.230 on 9 February 2021 (AEDT 2:01 PM).

The fintech and digital commerce software solutions and services provider has achieved several milestones, enabling it to tap the exciting opportunities in the BNPL and digital payments space. Recently, IOU also secured a Malaysian Money Lending Licence in order to comply with various legislations that are mandatory for delivering Buy Now Pay Later (BNPL) services in the Asian country.

Merchant Referral Agreement Details

The agreement doesn’t include any consideration from IOU. It has a one-year renewable term, enabling the referral and acquisition of EasyStore’s merchants to onboard and use the BNPL payment services offered by IOUpay.

Furthermore, IOU and EasyStore have started integrating their systems with BNPL payment processing capabilities, subject to the onboarding of merchants and approved customers by early March 2021.

IOU has completed several enhancements to its platform to facilitate approved merchants’ integration with its BNPL offering. The Company considers BNPL service a key necessity for big as well as specialist e-commerce merchants.

About EasyStore

Established in 2013 in Malaysia, EasyStore has grown to service over 7,000 merchants across the South East Asian (SEA) markets. Of the total merchant base, 5,000 are in Malaysia. The firm is also experiencing a boost in its merchant portfolio in the US.

EasyStore eyes to capitalise on the rapidly expanding market needs for merchants and their customers to leverage smoother access to various e-commerce sales networks, social media, and payment platforms.

In 2020, EasyStore merchants processed more than 20 million transactions that amounted to a total transaction value (TTV) of around $435 million.