Mastercard launches credit card in Myanmar
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MasterCard and CB Bank have announced their first payment product in the country – a prepaid travel card for locals called the CB Bank EASI Travel Prepaid MasterCard card.
The reloadable prepaid card will be made available to Myanmar residents for when they travel outside of the country. It is the first such card product to be launched in Myanmar and is yet another stage in the evolution of the electronic payments ecosystem.
MasterCard has been working very closely to enable CB Bank (which it licensed in September last year) to roll out its very first prepaid MasterCard card. CB Bank is already certified and has undergone full system testing as part of its efforts to be connected to the global payments network.
Mr. Kyaw Lynn, Executive Vice Chairman and CEO of CB Bank said, “CB Bank continues to be first in the electronic payments sector in Myanmar and we are pleased to be able to collaborate with MasterCard to launch this travel prepaid card. Just as our country is opening up to the world, at the same time, the world is opening up to our countrymen and we’re seeing more and more locals travel abroad. We are so glad to introduce this travel prepaid MasterCard card to help make their travels safe and hassle-free without the worries of carrying large amounts of cash.”
According to Matthew Driver, president, Southeast Asia, MasterCard, “Part of the allure of operating in such a frontier market is in seeing the vital steps of financial inclusion play out: a vast majority of people in Myanmar remain unbanked and don’t have access to financial services. But the payments infrastructure is rapidly developing – from the rollout of ATMs, point-of-sale terminals, and now the introduction of prepaid cards.”
“Overall consumer optimism is at an extreme high in Myanmar (96.0 Index points according to the latest MasterCard Index TM of Consumer Confidence).”
“This presents an alternative option for the growing number of locals who’ve had to carry wads of cash when they leave the country for business or leisure travel. It offers them a safe and secure payment method while abroad.”
Overall consumer optimism is at an extreme high in Myanmar (96.0 Index points according to the latest MasterCard IndexTM of Consumer Confidence). According to the MasterCard survey of Consumer Purchasing Priorities, nearly two-thirds of people who have traveled abroad intend to do so again within the next 12 months, making the introduction of a prepaid travel card timely for the market.
“Part of our financial inclusion strategy in Myanmar is to educate the local population about the value of electronic payments – we would like to help them understand the benefits of doing away with cash,” Driver added.
The launch of a new prepaid card marks another vital step forward in the country’s reform of its banking and financial system. MasterCard was the first international payments network to issue a license to a Myanmar bank in September last year, paving the way international payment cards to be accepted in the country for the first time. In November, MasterCard and Co-operative Bank Ltd (CB Bank) teamed up to launch the first ATM transaction at one of the bank’s Yangon ATMs.
It is expected that more than 500 restaurants, retail outlets and hotels in Myanmar will be accepting payment cards by the end of the year, following the rollout of Point-of-Sale (POS) terminals in March this year with CB Bank.
Questions & Answers
Q.Which specific product has Mastercard launched in Myanmar?
Which specific product has Mastercard launched in Myanmar?
Mastercard and CB Bank have launched a prepaid travel card for locals called the CB Bank EASI Travel Prepaid Mastercard card. It is reloadable and intended for Myanmar residents travelling outside the country.
Q.Why is this new card considered important for Myanmar residents?
Why is this new card considered important for Myanmar residents?
The card offers a safe and secure payment method abroad, providing an alternative to carrying large amounts of cash. This helps address the issue of many unbanked people who previously relied on cash when travelling.
Q.What other developments have occurred in Myanmar's electronic payments sector recently?
What other developments have occurred in Myanmar's electronic payments sector recently?
Mastercard issued the first international payments license to a Myanmar bank last September. ATM transactions were launched in November, and over 500 businesses are expected to accept payment cards by year-end after POS terminal rollouts.
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