The first ATM cards have been introduced in Myanmar. They prefigure the launching early next year of credit cards, an important step also for tourists.
YANGON- Debit cards were introduced last week in Myanmar allowing customers and clients to conveniently make use of plastic for shopping, dining and travel purposes. This is a pleasant move for its cash dominated economy.
The formation of the Myanmar Payment Union (MPU) with the support of 17 banks will facilitate easy access of cash by using any ATM machine all over the country. Customers can transact payments in number of shops, restaurants and offices without any problem, according to Myanmar Central Bank. With the introduction of plastic in Myanmar, this will remarkably help improve and boost the economy and to enhance the banking system through the use of the advanced technology.
Myanmar government under President Thein Sein launched political and economic reforms in the country, a requisite to lift economic sanctions which have been affecting the country for many decades. Among the move is the reintegration of Myanmar bank and credit system into international transactions.
The new MPU will now allow domestic customers to withdraw cash at any ATM installed for now in Yangon. The use of the new debit card will only be accessible to fourteen places in Yangon such as airline offices, two restaurants, one hotel, shopping malls and computer shops, according to Reuters.
More importantly, an agreement signed between MasterCard Inc. and the Co-Operative Bank Limited will pave the way to the issuance of a branded Credit card in the country most probably in the coming months. Representatives of MasterCard were part of the first US-Asean Business Council visiting Myanmar in July. Visa International is due to follow and already hold discussions with Myanmar authorities to establish a network. The new payment network will then serve as a gateway for international credit cards. Until now, few businesses were using credit card facilities such as the Traders Hotel or the Strand. However payments were processed through other countries, meaning that transactions were heavily taxed around 6% to 8%.
They are some 100 customers currently applying everyday for an ATM card since the liberalisation of the banking system but according to studies, only 10% of bank customers have now a debit card.
Banking services by foreign institutions are not yet permitted to engage in business although they have opened their branch offices in the country.
Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.
