If you thought the ‘buy now, pay later’ (BNPL) craze was over, think again.
Nearly every major name in this niche fintech space is trading higher today. With plenty of investor interest, even in some of the smaller and less well-known stocks.
Take IOUpay Ltd [ASX:IOU], for instance.
The company is trading 5.19% higher at time of writing. Surging on the back of an upbeat market, but also a key announcement. One that could see this fintech up-and-comer return to its recent all-time high.
Let’s take a closer look…
New partnership, new merchants, new users
The big news for IOUpay today is its fresh partnership with MYP1. A Malaysian-based payment service provider, with an extensive reach across all of Southeast Asia.
Now, under the terms of this deal, MYP1 will be referring and onboarding merchants it deals with to the IOUpay BNPL platform. Providing the company with more exposure, and more reasons for users to engage with them over competitors.
On top of this, IOUpay and MYP1 will integrate these BNPL offerings into ‘Smart POS (point of sales) Terminals’. Allowing customers to opt for a BNPL transaction in store with a credit or debit card, or even QR codes for e-wallets.
So, this won’t just be a purely digital offering. A unique offering that could, again, give them an edge over the competition.
However, to make this happen, there will need to be a rollout of said terminals. And with 15,000 merchants within MYP1’s network already, that could take some time.
According to IOUpay, the initial rollout (right up to the end of 2021) will see 2,800 stores receive one of these terminals. With plans already in place to continue this process into 2022 and beyond, as well.
Nevertheless, IOUpay CEO Khong Kok Loong is adamant that this will be an exciting undertaking:
‘MYP1 represents a unique opportunity to fast track our market penetration across large numbers of qualified merchants seamlessly by our BNPL payment services now being offered as the major payment alternative to cards and e-wallets through MYP1’s existing merchants and Smart POS terminal installation base.
‘We see this as a mutually beneficial partnership to drive BNPL transaction volumes and smart POS terminal installations and build a highly active and loyal merchant network.’
What’s next for the IOUpay Share Price?
With these comments, it seems clear that this deal will form the cornerstone of IOUpay’s 2021 operations. Furthering their exposure into this emerging market of Southeast Asia.
In this regard, it is certainly a fascinating stock to watch. One that is brimming with a lot of potential. The challenge for management though, is to continue to deliver on this potential.
After all, we’ve seen a fair bit of momentum come out of the BNPL sector in recent weeks.
Granted, that doesn’t mean that gains can’t still be made. As can be seen by today’s results across the board.
Long term, though, the outlook is far hazier. With many unknowns, especially when it comes to trying to penetrate foreign markets. And not just for IOUpay, but even for some of the more well-known BNPL brands.
For that reason, we’d suggest looking elsewhere within the fintech space. Companies that are doing more than just jumping on the BNPL bandwagon.
And if you’d like some examples, we’d recommend checking out our fintech stock report. Including three noteworthy companies that investors should keep an eye on.
To get the names of these three stocks, get your copy of this free report right here.
For Money Morning