2C2P, Myanmar Payment Union launch ecommerce payment platform

MPU card holders can now search, select and directly pay for online purchases. There are already some 900,000 MPU cards in Myanmar. MPU authorises the issuance and acceptance of all payment cards within the country.

This partnership provides non-cash payment options, eliminating the inefficiencies and risks inherent in cash payments, including high costs and long processing times. Myanmar citizens can now pay for goods and services from other countries. MPU cards can also be used by Myanmar citizens travelling abroad, boosting the outbound travel and tourism sector.

According to McKinsey Global Institute’s estimates, ecommerce and online retail in Myanmar are limited due to a lack of modern electronic payments systems. In its current state, Myanmar is a cash-based society, with cash-on-delivery (COD) remaining the predominant means of settling transactions. With the implementation of secure payment systems, as well as the expected rise in the penetration and use of credit and debit cards, the country’s consuming class will hit 19 million people by 2030. McKinsey also estimates that Myanmar is expected to quadruple the size of its economy from USD 45 billion to over USD 200 billion by 2030, with per capita GDP rising from USD 1,300 in 2010 to USD 5,100 by 2030.

In a 2012 survey conducted by the Asian Development Bank, mobile internet penetration was under 1%. In 2014, Myanmar Survey Research forecast this number at above 20% in the capital city Yangon, driven by the burgeoning availability of smartphones, with foreign handsets under USD 200 inundating the domestic market. Moreover, according to Myanmar’s Ministry of Communications and Information Technology, the country strives to increase its mobile phone density to 80% in 2015-2016, a significant step up from the 10% penetration rate in 2012-2013.