E-commerce limited due to lack of modern electronic payment systems
Myanmar expected to quadruple size of economy to over US$200 billion by 2030
MYANMAR now has its first electronic commerce payments platform, developed and implemented by 2C2P, a leading South-East Asian payment services company, and Myanmar Payment Union (MPU), the national payment network.
MPU card holders can now search, select and directly pay for online purchases. There are already some 900,000 MPU cards in Myanmar, a number that is increasing rapidly, in line with ongoing economic reforms. MPU authorises the issuance and acceptance of all payment cards within the country.
The 2C2P e-commerce payment platform creates the country’s e-commerce and online payments infrastructure, modernising what is a cash-based economy, the company informed in a statement.
According to McKinsey Global Institute’s estimates, e-commerce and online retail in Myanmar is limited due to a lack of modern electronic payment 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 US$45 billion to over US$200 billion by 2030, with per capita gross domestic product (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. We are excited to work with 2C2P to tap into this growth, ushering in a new phase of Myanmar’s electronic commerce. This will be key, not just for our citizens to transact online, but also to boost the economy, ensuring that we are on a more even footing with other regional markets,” said Zaw Lin Htut, MPU chief executive officer.
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