On the 1st of August, FPT Corporation was officially selected by Myanmar Payment Union (MPU) as the prime investor to implement a national financial switching system for Myanmar. This event marks a significant improvement opportunity for the economy of Myanmar, where over 95% of transactions are still made in cash.
The contract establishes the co-operation of FPT and MPU under a profit share agreement. The entire financial switching system will be funded and implemented by FPT with a project timeline of one year from August 2016. FPT will offer PMU a 10-year lease on the system and generate income from the charges on electronic transactions. FPT Information system (FPT IS), a member company of FPT, is assigned to implement this project. 24 of 40 local financial organizations have been connected to MPU and this number is likely to increase in the future.
Although the total population of Myanmar is around 55 million, and there are now over 2000 ATMs, 4000 POS, and some 2 million bank cards have been issued in Myanmar, over 95% of transactions are still made in cash. The deployment of a national financial switching system will help Myanmar accelerate the process of evolving from its cash payment system to electronic payment solutions. The new payment system will be implemented for typical banking services such as ATM, POS, E-Commerce, value added services for mobile devices, EMV and electronic billing.
FPT has entered Myanmar since the early days after the country opened to global economic integration. FPT established its branch named FPT Myanmar on May 7th, 2013 and originally focused on the field of system integration.