Myanmar Poised to Ramp Up Mobile Phone Payments

The number of mobile payments is expected to dramatically increase in Myanmar as the government is set to “grant two new telecommunications licenses at the end of this month,” Business Week reports.

Visa and MasterCard, two of the world’s largest electronic payment companies claim that the market in Myanmar will shift from using cash, to relying on debit and prepaid cards. With a population of 64 million, only 1 in 10 people possess a handset. The country is set to finalize the licensing of two telecom providers, and plans to have 80 percent of the population covered with affordable service by 2016.

In other emerging markets, people are “underbanked,” and it is expected that most will more likely purchase handsets and mobile services before opening a bank account. Connections can be made between Myanmar and Kenya, where more than $900 million is transferred monthly through mobile payments, according to Business Week. According to Visa, Kenya is the most advanced country in mobile payments, and Myanmar may be another mobile payments success story.

Along with a massive increase in effective infrastructure, Myanmar will look towards tourism as a major boon to the economy. It plans to spend $500 million on tourism projects which may bring in 7.5 million visitors by 2020 and add more than 1.4 million jobs, according to Business Week. These factors can combine to firmly establish Myanmar as a promising market for mobile payment methods.