Myanmar welcomes e-payment services in February 2015

Chief Executive Officer of MPU, Zaw Lin Htut, claimed that businesses can enroll at their local branch, and a service network will be developed among local businesses, irrawaddy.org reports. Htut said that businesses will have to bank with one of its 20 partners to be eligible for ecommerce, and member banks will provide technical support and consultation as businesses establish online shopping systems.

According to company data, there are currently more than 850,000 MPU cardholders nationwide. Debit cards were first introduced in Burma in 2011, after the MPU was formed among existing banks. Three of MPU’s 20 member banks are state-owned. United Amara, CB and military-backed Myawaddy are among the Union’s member banks that have already enrolled to develop ecommerce services.

Zeyar Aung, head of the card department at CB Bank, said that service testing is already underway and the bank is currently negotiating with several companies that wish to enlist the service, including several travel and tour agencies. Online payment could be particularly useful for the tourism industry because many users prefer to book travel tickets online.

Burma operated on a cash economy until 2011, the start of political and economic reforms under President Thein Sein’s government. Since that time, two foreign telecoms operators have entered the market, rapidly expanding mobile and internet access.

Currently the only card provider in Burma, MPU, established the country’s first ATM card system. In February 2015, MUP also plans to further expand its services by signing a bilateral agreement with China Union Pay that would allow MPU to produce debit cards that can be used internationally. The agreement is expected to go into effect later in 2015, with a similar deal likely to be struck with the Japan Credit Bureau.

The number of MPU cardholders has risen rapidly in 2014, from about 200,000 in early 2014 to about 850,000 at present, and more than 1,000 ATM machines have been installed in Rangoon, Mandalay and Naypyidaw since cards were introduced.

MasterCard became the first international electronic payment system to be used in Burma as of November 2012, followed by Visa in December of the same year.