Myanmar-headquartered social media and entertainment company MySquar announced plans to launch a mobile money service by end-September, after signing two separate partner deals to provide the backbone for services.
The company inked contracts with Uber Remit and cash transfer specialists Internet Wallet Myanmar – the latter of which operates consumer brand OK Dollar.
New Zealand-based Uber Remit will offer MySquar access to remittance from 50 markets around the world – including its priority origination point of Singapore. The tie-up with Internet Wallet Myanmar will give the company, among other benefits, access to a payments licence in the country.
MySquar already provides social media and mobile games to consumers in Myanmar and has been working on its expansion into payments since signing a deal with app provider MyPay in 2015.
The company estimates less than 20 per cent of Myanmar’s population is able to access traditional banking services, while smartphone penetration is relatively high. MySquar CEO Eric Schaer said: “This increases the likelihood for rapid adoption of digital wallets and makes the remittance process practically seamless.”
“Inbound remittances from the Myanmar diaspora is reported to be around $8 billion annually according to The World Bank. With around 50 per cent of these remittances occurring through informal channels, there is pressure to formalise cross-border remittances and our mobile money platform is expected to form a convenient, safe and affordable way of meeting this gap in the market.”