"which we know thanks to the AG licence can be considered to be...

"Upon IOU paying the 2nd tranche and therefore owning 42% of the company, they will then quickly get a credit facility,"

They also have access to the customer database.

"which we know thanks to the AG licence can be considered to be a pretty reliable source of profit."

The AG license gives them access to the pay packets of hundreds of thousands of gainfully employed Malaysians.

So it goes like this
- Malaysian civil servant sets up an IOU account.
- IDSB gets a percentage of each transaction done via wage garnishment. IOU gets some of this.
- Additionally, IOU gets more back than they have lent since the merchant basically pays for the profit margin.


There are about 1.5 million people on the government payroll in Malaysia. I would suggest that, given their higher wages, they're also relatively high credit users. Tends to be how it goes.

The beauty of their business plan is they have a credit product that sounds moral, especially off the tail end of a significant government intervention in the credit market (ie, its 0% interest), it's convenient, and they're taking super low risks. They're not just focusing on just random users, they're spending cash to purchase a book and fund collection mechanism to lower their credit risk.

Other BNPL's may be able to offer wage garnishing, but then they have to go through ANGKASA or IDpay- who will charge them a fee.

IOU thus gains a significant competitive advantage.

And this isn't even how I think they want to make money, this is just part one. What they really want is more people to use digital banking and generate revenue from micro-fees.