Myanmar chooses Vietnamese tech giant to build national electronic money transfer system

The building of a financial switching system is a major step in modernizing Myanmar's economy where more than 95% of transactions are conducted in cash.

FPT Corporation has just announced that it has been selected by Myanmar National Financial Switching and Payment Company (MPU) as the main investor for the National Financial Switching System project.

Myanmar is known as a cash country with more than 95% of transactions conducted in this form.

The cooperation between FPT and MPU is determined by the profit sharing model. Within one year (from August 2016), FPT will invest in building and deploying the entire Financial Switching System for Myanmar. The Vietnamese technology giant will lease the system to MPU for 10 years and enjoy a percentage (%) from the fees collected on electronic transactions.

FPT Information System Company (FPT IS) will be the direct unit implementing this project. Initially, 24/40 financial institutions in Myanmar will use the system and this number will continue to increase in the coming time.

Myanmar currently has a population of about 55 million with 2,000 ATMs, 4,000 POS machines and nearly 2 million ATM cards of all kinds. However, 95% of transactions here are still using cash. The government is moving towards a cashless payment society. Therefore, operating a national financial switching system will help Myanmar accelerate the transition process. Outstanding banking services such as ATMs, payments on POS systems, value-added services on VAS mobile devices and EMV card services, bill payments... are all applied on the platform of the new electronic payment system.

FPT IS General Director - Pham Minh Tuan commented that with the benefit sharing contract and long-term commitment, it will help Myanmar accelerate the electronic payment roadmap and push back cash. In addition, providing a large national financial system in Myanmar will be an important premise in opening up new cooperation opportunities for FPT in the banking and financial sector in Myanmar.

FPT’s strategic partner in implementing this project is the National Payment Corporation of Vietnam (NAPAS). With over 10 years of experience in providing services, NAPAS will advise on payment policies and operations for Myanmar. In the near future, FPT and NAPAS plan to expand the scale of cooperation to be able to provide similar services to other developing countries in the region.

FPT has many years of experience in implementing financial switching systems for domestic and foreign customers such as Vietnam National Financial Switching Company, State Bank of Cambodia, Vietcombank, BIDV, Sacombank...

According to VNE