fastacash recently announced that it has made a strategic investment in MyPAY to enable social payments in Myanmar.
MyPAY, which is developing a mobile payment system, also has a strategic partnership with MySQUAR, a social network with approximately 1.5 million user accounts.
Along with the investment, fastacash will also provide the technology platform to MyPAY to enable payments through social. Fastacash will also support MyPAY's go-to-market activities, including market insights and global partnership management.
Through fastacash's platform, consumers using MyPAY will be able to transfer money and airtime with their social connections, as well as make payments at retail points. MyPAY will leverage MySQUAR's user base of approximately 1.5 million user accounts.
"We see tremendous opportunity for both peer-to-peer and person-to-merchant payments in Myanmar, market, where 90 percent of people are unbanked and underserved by traditional financial institutions," said Nicolas Nguyen, Chief Executive Officer of MyPAY. "Together with fastacash, MyPAY is going to introduce a mobile money app, compliant with Myanmar law, to make payments easier for consumers and merchants in Myanmar. With fastacash's technology, we are able to leverage social networks such as MySQUAR."
According to McKinsey, Myanmar's economy will quadruple the size of its economy from US$45 billion in 2014 to US$200 billion by 2030. This economic growth will be strongly correlated to the mobile and social penetration in the country, which will be driven by 47 percent of the population which are under the age of 24.
With only 4.8 percent of the citizens being banked, it presents a huge opportunity for mobile payments and banking services, said fastacash. This is because mobile penetration in the country is expected to rise from 10.5 percent in 2014 to 57 percent in 2016, boosted by the entry of foreign telecom companies.
By bringing payments and transaction capabilities to social networks, fastacash, MyPAY and MySQUAR are helping build Myanmar's social payment infrastructure, as an alternative to cash-based payments. MyPAY will leverage a large existing network of merchants to provide cash-in and cash-out capabilities.
"MyPAY and fastacash will make social payments a reality — for the very first time — in one of the last large untapped markets," said Vince Tallent, Chairman and Chief Executive Officer of fastacash. "Building a presence in Myanmar is aligned with our strategy to be a global leader in social payments, given Myanmar's prominence as a large domestic market and receive market for global remittances."