Fintech and digital commerce solutions provider IOUpay has become the newest player in the thriving Shariah compliant buy-now-pay-later (BNPL) market in Malaysia — the first step in its plan to expand into Southeast Asian countries with large Muslim populations.
IOUpay is a digital transaction and payment processor that connects banks, telcos and brands and their e-commerce or in-store merchant networks with their customers, both online and at point-of-sale, it says on its website.
The company’s wholly-owned subsidiary, IOUpay Asia, has recently secured a certificate of Shariah compliance from Tawafuq Consultancy, and also signed an agreement with Shariah compliant payment gateway PayHalal, as part of the launch of its latest offering: myIOU Islamic BNPL.
Under the merchant acquiring services agreement, IOUpay will be reviewing and short-listing the approximately 7,000 merchants in PayHalal’s portfolio, to onboard to myIOU Islamic BNPL.
“The agreement provides for PayHalal to acquire and refer to IOUpay Asia merchants who follow Shariah principles and wish to offer to their customers BNPL payment options consistent with Shariah principles and the practices of Islamic finance,” a statement read.
The company confirms that the integration of the PayHalal payment gateway to the myIOU BNPL platform has already been completed.
“Shariah compliance and Islamic finance product capabilities provide a number of strategic growth opportunities,” IOUpay said, including access to new communities of Muslim consumers and merchants and partnerships with Islamic banks and other financial institutions for consumer finance programs.
The annual certification of IOUpay’s Shariah compliance commenced on the 12th July 2022 and is subject to annual compliance audits for subsequent yearly renewals.
Malaysia has at least four other Islamic BNPL platforms, namely Atome, Split, superapp Grab’s PayLater and online shopping platform Shopee’s ShopeePay.