23 Nov

IOU Provides Mid December Quarterly Update on BNPL Business

Sydney Singapore Jakarta Yangon Kuala Lumpur IOUPAY LIMITED (ASX: IOU) ( ACN 091 192 871) Suite 305, Level 3, 35 Lime Street, Sydney NSW 2000 Tel: (02) 8296 0000 Website: www.iou - pay.com 2 3 rd November 2021 ASX Announcement BNPL Business Offering & Operation al Update Highlights • Uptake of BNPL service continues with strong margins for myIOU BNPL transactions completed in the firs t half of the Dec ember Quarter ( 1 Oct to 1 4 Nov ) : o $ 3,189,092 in Total Transaction Value ( “ TTV ” 3 ) has been transacted ; delivering , o $306,616 in Net Transaction Revenues ( “ NTR ” 4 ) • Strong g rowth in Consumer and Merchant sign ups, approval and onboarding : o 2,613 merchants now onboarded (up 13 % since 30 Sept ) o 1,182 merchants system activated and listed on myIOU (up 25 % since 30 Sept ) o 28,370 consumer downloads of myIOU (up 67 % since 30 Sept ) o 8,201 consumer activated accounts (up 71 % since 30 Sept ) • Razor Merchant Services (“RMS”) pilot group of merchants to go live by ea rly December • Merchant acquisition active across industry ve rticals and int o regional Malaysia driving significant growth trend in consumer onboarding and activation • Update on I DSB Completion and Settlement Process of acquisition • COVID - 19 Environment Update – Phase 4 of National Recovery Plan underway with a significant reopening of the economy IOUpay Limited (ASX:IOU) (‘ IOUpay ’ or the Company ) is pleased to announce a BNPL & Operational Update with information current to 1 4 th November 2021 . BNPL Business Offering Update TTV 1 and NTR 2 Performance Metrics Values for Period 1 October – 14 November 2021 Total Transaction Value 1,3 $ 3,189,092 Net Transaction Revenue 2,3 $306,616 myIOU Income Margin 4 9.6 % Cumulative Totals as at 1 4 November 2021 Merchants Signed 2,865 Merchants Onboarded 2,613 Merchants System Active 1,182 Consumer Downloads 28,370 Consumers Onboarded 19,469 Consumer Account Activations 8,201 Note: 1. Total Transaction Value (TTV) means total value of purchases made by myIOU customers 2. Net Transaction Revenue (NTR) means TTV less the amounts paid to merchants 3. All amounts in AUD, a ssumed MYR/AUD exchange rate 3.0 5 using RBA sourced reference 4. myIOU Income Margin means NTR as a percentage of TTV - 2 - Sydney Singapore Jakarta Yangon Kuala Lumpu r Razer Merchant Services (RMS) Following successful completion of systems integration testing by the RMS Quality Control & Implementation team, training of RMS internal and sales staff on the myIOU platform was conducted by the IOUpay Merchant Services team and completed at the end of October. A pilot grou p of merchants is being prepared to go live , expected within the next three ( 3 ) weeks. F ull implementation will then be activated on a timetable to be agreed with RMS. Merchant & Consumer Acquisition As the local Malaysia n economy opens up, m erchant acquisition is increasing with business development personnel able to be more active in the field and engage with prospective merchants through in - person marketing and account management calls. This includes dedicated sales sta ff operating in regional Ma laysia under the Company’s regional commercial development plan . During the first half of the December quarter, more than 100 merchants operating over 300 outlets around Malaysia have been added to the myIOU platform. New merch ants have been added to almost every industry vertical category. Key industry verticals with numerous merchants added since 30 th September include: Electrical & Electronics (17 merchan ts with 126 outlets); Automotive (17/21); IT & Gadgets (18/51); Home & Garden (10/14); Beauty (5/10); and, Health & Personal Care (7/45). Notable businesses amongst these new merchant relationships include the following electrical stores from regional Malaysia (outside Kuala Lumpur & Selangor ) : Wah Lee Chain Store Sdn Bhd , Darson Electronics Sdn Bhd, Star Electronics Sales and Services Sdn Bhd, and Surai Jerai Electrical Sdn Bhd . A s shopping choice expands with many new merchants added across industry verticals and physical store locations, consumer engagement with myIOU has shown a significant growth trend over recent weeks. This growth also correlates with the Government’s easing of COVID - 19 restrictions, the Company’s ongoing Digital Marketing Strategy and various promotional campaigns . IDSB Completion and Settlement Update A s note d in the recent update in the September Quarterly Activities Report, released 29 October 2021, there was, at that time one remaining condition precedent ( “ CP ” ) expected to be satisfied in November at which point the first tranche payment of 50% of the purchase pr ice would be made. The one remaining CP to be satisfied is a third - party consent from one of IDSB's bank ing partners for the change of shareholding , which is required under the terms of the respective collaboration agreement between IDSB and the bank partner. The Company expects th is to be a formality and this has only been delayed due to the bank i ng partner ’ s ability t o con vene its normally sched uled formal Board meetings due to local COVID restric tions. At the date of this release whilst the CP remains outstanding , the Company is not aware of any reason as to why the expectation of completion of that condition precedent by the end of November is not on foot, and if not by the end of November otherwise imminent at the next meeting of the third - party bank ing partner . IOU will of course keep the market informed of the progress of the IDSB transaction and satisfaction of that condition precedent which is material to the Company’s progression of its BNPL expansion objectives in the Malaysia and South - East Asia region generally. - 3 - Sydney Singapore Jakarta Yangon Kuala Lumpu r COVID - 19 Environment Update During October and early November, nearly all states, territo ries and major economic centres moved into Phase 4 of the Malaysia Government’s National Recovery Pl an (“NRP”). Phase 4 provides for the re - opening of all economic sectors, interstate travel (subject to SOPs) and no gathering limits . On 10 th October, all interstate and international travel restrictions for fully vaccinated residents were lifted as the required vaccination threshold of 90% of the adult population had been reach ed. With economic re - opening and interstate travel permissions, the Company has deployed a dedicated Regional Commercial Officer to develop the regional areas outside of the Klang Valley central economic hub encompassed by Kuala Lumpur and Selangor. Business development operatives have been employed and calling programmes implemented with immediate success evidenced by the numerous merchant relationships established (particularly in the electrical goods sector). The release of this announcement was authorised by the Board of the Company and released by the Company Secretary . Yours faithfully , IOUpay Limited Jarrod White Company Secretary Media Enquiries: Hannah Blackiston Media & Capital Partners hannah.blackiston@mcpartners.com.au About IOUpay (ASX:IOU): IOUpay Limited (ASX:IOU ) provides fintech and digital commerce software solutions and services that enable its institutional customers to securely authenticate end - user customers and process banking, purchase and payment transactions. The Company’s core technology platform ena bles large customer communities to connect to end user customers using any mobile device and integrate mobile technology throughout their existing business and customer product offerings. The Company’s business divisions consist of Mobile Banking and Digi tal Payments which service leading banks in Malaysia and large telcos and corporates in Malaysia & Indonesia. IOUpay also works with telecommunication network providers to provided mobile OTT (over - the - top) services that leverage their subscriber base to build active communities. Forward Looking Statements This announcement contains forward looking statements, including statements of current intention, statements of opinion and predictions as to possible future events. Forward looking statements should, or can generally, be identified by the use of forward - looking words such as “believe”, “expect”, “estimate”, “will”, “may”, “target” and other similar expressions within the meani ng of securities laws of applicable jurisdictions, and include but are not li mited to the expected outcome of the acquisition. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward - looking statements. Such statements are not statements of fact and there can be no certain ty of outcome in relation to the matters to which the statements relate. These forward - looking statements involve known and unknown risks, uncertainties, assumptions and other important factors that could cause the actual outcomes to be materially differe nt from the events or results expressed or implied by such statements. Those risks, uncertainties, assumptions and other important factors are not all within the control of IOUpay and cannot be predicted by IO Upay and include changes in circumstances or e vents that may cause objectives to change as well as risks, circumstances and events specific to the industry, countries and markets in which IOUpay operates. They also include general economic conditions, exchange rat es, interest rates, competitive press ures, selling price, market demand and conditions in the financial markets which may cause objectives to change or may cause outcomes not to be realised. None of IOUpay or any of its subsidiaries, advisors or affiliates (or any of their respective officers, employees or agents) makes any representation, assurance or guarantee as to the accuracy or likelihood of fulfilment of any forward - looking statement or any outcomes expressed or implied in any forward - looking statements. Statements a bout past performance are not necessarily indicative of future performance.
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