The Myanmar Payment Union (MPU) has teamed up with payment services provider 2C2P to encourage e-commerce growth in the country.
Under the partnership, 2C2P will provide an e-commerce and online payments infrastructure to provide non-cash payment options to Myanmar. This allows MPU cardholders to search, select and directly pay for their online purchases. It also eliminates the inefficiencies and risks inherent in cash payments, including high costs and long processing times, said MPU and 2C2P in a joint press release. Both organisations added that the move will also open up the world to Myanmar citizens as MPU cards can be used for payments outside Myanmar.
According to McKinsey Global Institute, e-commerce and online retail in Myanmar is limited due to a lack of modern electronic payments systems. Myanmar is currently a cash-based society, with cash-on-delivery 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 will quadruple the size of its economy from US$45 billion to over US$200 billion by 2030, with per capita GDP rising from US$1,300 in 2010 to US$5,100 by 2030.
"Myanmar is witnessing a period of explosive growth, fuelled by mobile and internet penetration," said Zaw Lin Htut, CEO of Myanmar Payment Union (MPU). "We are excited to work with 2C2P to tap into this growth, ushering in a new phase of Myanmar's electronic commerce. "
This initiative is not 2C2P's first effort in developing Myanmar's financial services infrastructure. It recently launched Citizen Card, the country's first prepaid card with a real-time mobile app. 2C2P has also introduced iACCEPT, a mobile point-of-sales system, along with Visa, MasterCard, Myanmar Citizens Bank and Myanmar Hotels International.
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