It’s a little hard to believe, but, four years ago, sim cards in Myanmar used to cost around US$500. If that price is considered exorbitant for even a first world nation, think about how out-of-reach it would be for the working class Burmese, whose minimum wage is only US$87.
But that all changed thanks to the entrance of two foreign telecoms in 2013, Qatar’s Telenor and Norway’s Ooredoo, which saw sim card prices slashed to about US$1.50. Since then, the mobile penetration in Myanmar has skyrocketed to 90 per cent, up from 7 per cent in 2012, according to government figures. And of that, more than 80 per cent use smartphones; as a result, Burmese are hooking up to the internet more than ever.
Now, Thailand-based fintech company T2P wants to help Burmese catch up to a tech product already prevalent in many other markets — mobile payments.
Earlier this week, T2P signed a joint venture deal with City Mart Holdings Co.,Ltd, a leading Myanmar retail chain with over 200 outlets across the nation, which includes fast food restaurants, bookstores and supermarkets.
The signing was held during a Myanmar-Thailand Business Cooperation event presided over by Myanmar State Counseller Aung San Suu Kyi and Deputy Prime Minister of Thailand Dr. Somkid Jatusripitak.
The joint venture will see T2P integrate its suite of fintech offerings including its payment platform, loyalty and e-gift platforms, as well as e-wallets to cater to Myanmar’s burgeoning smartphone user demographics.
According to an official press release, T2P’s overarching goal is to democratise financial services to the country’s large unbanked population.
“At a company level, we are not only bringing our technology platform to help accelerate technology deployment for our partner, but also indirectly drawing attentions from our investors and other potential investors to take a deeper look at opportunities in Myanmar. When more of this happen[s], I’m sure there will be more parties to help accelerate the growth of startup ecosystem in Myanmar,” said T2P’s CEO Taweechai Pureetip, in an interview.
He added that through regional events such as Mekong Investment Forum, Thai entrepreneurs are raising awareness about the great potential of tech innovations, as well as enabling other entrepreneurs by sharing their experiences and lessons.
But like any emerging economy, Myanmar’s tech ecosystem still have many obstacles to overcome. Basic infrastructure is still dysfunctional in certain parts, especially rural areas. And although foreign investments are on the rise in Myanmar, the law regarding such investments in the country’s newly-minted stock exchange is still restrictive.
Pureetip is aware of such challenges, having faced similar problems in his home market.
“Since the beginning of our company, we aimed to help improve financial access to those unbanked in Thailand. We have to take into accounts technology literacy of our customers, access to services, and connectivity issues that may arise in some areas. These are similar issues but may be more common in Myanmar,” said Pureetip.
“Aside from technology, both Burmese and Thais are cash base society. Changing cash into electronic money will be our big challenge for us but we also see great opportunities there. We will be working closely with CityMart in adapting our service offerings to encourage them to use more electronic money,” he added.
Founded in late 2011 by MIT Alumni Pureetip, Natwut Amornvivat and Charatpong Chotigavanich, Panop Kasemsarn, T2P has been providing white label cash and reward card solutions to national retailers in Thailand since 2013. It currently process over 1.5 million card holders,
In 2016, it raised its first outside financing round in 2016 from 500 Startups, 500 Tuk Tuk and a strategic partner Benchachinda Holding.
