myIOU, the Malaysian buy-now-pay-later (BNPL) arm of Australia-listed IOUpay, has achieved positive adjusted net operating cashflow for the fourth consecutive quarter in the July—September 2022 period. This is on the back of receiving a Shariah seal of approval and forming new partnerships with Islamic finance-related entities.
According to an official update, myIOU’s adjusted net operating cashflow value reached AU$7.16 million (US$4.64 million) after adding back AU$8.87 million (US$5.75 million) payments to BNPL merchants that form part of BNPL receivables. Net-performing loan ratio stood at 0.68%.
From July to September 2022, myIOU onboarded 185 new merchants. Quarter-on-quarter, onboarding and account activation grew 39% and 34% respectively.
Halal partnerships
The positive quarterly momentum is in the backdrop of myIOU receiving a Fatwa for its BNPL offering under the myIOU Islamic brand. It also partnered with Islamic payment gateway PayHalal, which gives it access to over 7,000 merchants in PayHalal’s portfolio. So far, myIOU have approved 53 merchants through this partnership. myIOU and PayHalal also processed the first Islamic BNPL transactions ahead of schedule in early September.
The firm also collaborated with national savings bank, Bank Simpanan Nasional (BSN), to offer its BNPL services to the bank’s 6.6 million cardmembers. Providing both conventional and Islamic banking services, BSN’s portfolio is largely Shariah compliant.
IOUpay has made it clear that it intends to make a stronger Islamic fintech play, through its Malaysian arm. The Australian parent at the end of the first half of 2022 appointed Malaysian Islamic banking veteran Wan Asmadi Wan Ahmad to lead the group’s board as its non-executive chairman.