Douugh (ASX:DOU) share price jumps on OFX (ASX:OFX) deal

Douugh may be having a bad year but things are very different today

| More on:
rising asx share price represented by woman jumping in the air happily

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Douugh Ltd (ASX: DOU) share price is on the move on Wednesday.

In morning trade, the financial wellness app company's shares are up 9% to 12 cents.

However, despite this gain, the Douugh share price is still down almost 30% in 2021.

Why is the Douugh share price jumping?

The Douugh share price was given a boost this morning by the release of an announcement.

According to the release, the company has formed a three-year strategic alliance with OFX Group Ltd (ASX: OFX) to offer its customers bank-beating foreign exchange services.

Douugh intends to start by offering brokerage-free US single stock and ETF trading via its recently acquired Goodments app. After which, it may extend its alliance to offer international money services as an integrated feature in the Douugh banking app, providing access to over 50 global currencies.

The release explains that the Douugh's customers will pay OFX a foreign exchange fee so they can then buy US securities. OFX will then pay a portion of the fee to Douugh in the form of a revenue share.

Douugh's CEO, Andy Taylor, commented: "We are delighted to announce this exciting partnership with OFX. They have invested a lot in building a robust platform to support fintechs to build and integrate new customer offerings. FX will become a key component of our platform over time as we look to facilitate investing in US securities, not to mention helping customers move money around the world."

While the financial impact of the new partnership is indeterminable at this stage, management believes it is material given that it creates a new revenue line for the company. It also believes commission-free brokerage for single stock and ETF trading is of significant interest to its target market. As a result, it is expecting a strong uptake once its Goodments app is relaunched with the features.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing end to the trading week for investors this Friday.

Read more »

A young boy points and smiles as he eats fried chicken.
Share Gainers

3 ASX All Ords shares smashing the benchmark this week

Investors are sending these three ASX All Ords shares rocketing 18% to more than 29% this week. But why?

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Alliance Aviation, BHP, Boss Energy, and Orthocell shares are racing higher

These shares are ending the week on a positive note. But why?

Read more »

Man with backpack spreading his arms out and soaking in the sun.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing session for investors today.

Read more »

Hands reaching high for a trophy with a sunset in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a nervous hump day session for ASX investors today.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

Why Collins Foods, DroneShield, Star Entertainment, and Virgin Australia shares are charging higher

These shares are having a good time on hump day. But why?

Read more »

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors enjoyed a strong recovery day this Tuesday.

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Share Gainers

CBA shares hit another all-time high. Can they surpass $200 in 2025?

CBA shares have a tailwind pushing up their price that has nothing directly to do with the bank's business performance.

Read more »