IOUPAY (IOU.ASX) has the goal to become one of the leading digital transaction processors in the booming cashless economies of South East Asia. The stock currently trades at 30c per share, so lets take a look with Prophet Exclusive and see, Are IOUPay Shares (IOU.ASX) Heading for a Position in the $1 Club?

What Business Do IOUpay Shares Operate In?

IOUpay are in the business of processing digital payments and mobile banking in South East Asia. It seems as though the adoption of Digital payments in South East Asia has recently reached an inflection point with uptake expected to cross US$1 trillion by 2025. This seems to be a massively addressable market and even a small slice of the pie will be beneficial to IOUpay Share Price.

IOUpay operate in providing secure mobile banking services connecting banks and their customers. They also connect billers and end user customers enabling the purchases of utilities and other common household goods.

IOUpay also recently added new capabilities to process Buy-Now Pay-Later (BNPL) installments and consumer loan payments.

IOUpay has a BuyNowPayLater (BNPL) option too?

As mentioned in the companies Appendix 4C April 2021. The significant focus has been applied to securing a number of strategically targeted, high quality and large merchant networks to lay the initial distribution platform for the company’s new BNPL service offering to customers.

The company is in a unique position to capitalize on first mover advantage for BNPL services in Malaysia. This is similar to Prophet Invest favorite Fat-Fish Group See Report.

IOUpay estimate that they will have access to ~75,000 merchants upon full roll out of the EasyStores and iPay88’s merchant pools.

We are excited about the prospects of BNPL around the world and having a first mover advantage is a great position to be in.

IOUpay cash position

From the Company’s March 2021 Quarterly Report. Regarding the current quarter they highlight the following:

  1. Receipts from customers @$1.9million
  2. Net Cash from / (used in) operating activities @ -$600k
  3. Cash and Cash equivalents at the end of the period @ 54million

It’s worth keeping in mind that the company has a current market cap at 30c a share of $170.9m. interesting to note that $54 million of this is cash and cash equivalents.

IOUpay Shares: Fundamentals

The 6 month chart of IOUpay can be found below:

Exclusive Are IOUPay Shares (IOU.ASX) Heading for a Position in the $1 Club?, IOUPay Share Price, IOU Pay Stock, IOUPay Shares
Source: Nabtrade.com.au
Market Cap$170.9million
Current Share Price$0.3
Shares Outstanding551million
EPS-0.01
PE RatioN/A (The company is not profitable)
Data Current as at writing

Prophet Community Consensus

Like always the Prophet Community has been consulted on this stock the results of the survey can be found below.

Exclusive Are IOUPay Shares (IOU.ASX) Heading for a Position in the $1 Club?, IOUPay Share Price, IOU Pay Stock, IOUPay Shares
Source: Raw Data

The Prophet Community is overly bullish on the Stock price of IOUpay.

IOUPay Stock: Prophet’s Take

Prophet is bullish on the BNPL sector as a whole. We love FatFish Group (FFG.ASX) shares which have a first mover advantage in Singapore. We are neutral on IOUpay shares and it will be very interesting to see how they put their massive pile of cash to work for them.

If they can employ their cash to capture a decent segment of market share we will revisit the stock.

Please Remember all Articles Published on Prophet Invest are Opinion only

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