June 16, 2023 | By Jason Myat, Ruth Aung
June 16, 2023 | By Jason Myat, Ruth Aung
Moving Towards a Cashless Society
Moving Towards a Cashless Society
The world is rapidly evolving in every aspect as well as technology and this has an impact on our lives. Digital payment systems have been taking over the payment systems all around the world to exchange value and conduct business smoothly. In today’s fast-paced digital world, convenience and efficiency are critical, especially when it comes to financial transactions. This is where the digital payment switch emerges as a game-changer. Digital payment switch connects different payment service providers, including banks, mobile wallets, payment processors, and other financial institutions, by serving as a single point of contact or intermediary. As an example, Thailand has PromptPay which is the digital payment switch. This is the combined QR code among all the different QR codes produced by banks, mobile wallets and financial institutions.
The world is rapidly evolving in every aspect as well as technology and this has an impact on our lives. Digital payment systems have been taking over the payment systems all around the world to exchange value and conduct business smoothly. In today’s fast-paced digital world, convenience and efficiency are critical, especially when it comes to financial transactions. This is where the digital payment switch emerges as a game-changer. Digital payment switch connects different payment service providers, including banks, mobile wallets, payment processors, and other financial institutions, by serving as a single point of contact or intermediary. As an example, Thailand has PromptPay which is the digital payment switch. This is the combined QR code among all the different QR codes produced by banks, mobile wallets and financial institutions.
Financial Landscape
Financial Landscape
Myanmar has a high rate of mobile usage and smartphone penetration of 96% according to the Post and Telecommunications Department (PTD). Although the number of people using their smartphones with internet access is increasing day by day, the number of unbanked population is still high. Following COVID-19 Pandemic, Myanmar, the country that is predominantly cash based began embracing digital payments which led to a drop in cash payments across all regions. As most citizens have utilized their fair share of online transactions, including mobile wallets and banks, during the epidemic, the country’s higher mobile and digital finance infrastructure has made it much easier to move from cash-based payments to cashless payments. Enhance, this was a perfect time to encourage the digital payments whereby Digital Payment Switch seems to be the most viable option for building cashless society.
Myanmar has a high rate of mobile usage and smartphone penetration of 96% according to the Post and Telecommunications Department (PTD). Although the number of people using their smartphones with internet access is increasing day by day, the number of unbanked population is still high. Following COVID-19 Pandemic, Myanmar, the country that is predominantly cash based began embracing digital payments which led to a drop in cash payments across all regions. As most citizens have utilized their fair share of online transactions, including mobile wallets and banks, during the epidemic, the country’s higher mobile and digital finance infrastructure has made it much easier to move from cash-based payments to cashless payments. Enhance, this was a perfect time to encourage the digital payments whereby Digital Payment Switch seems to be the most viable option for building cashless society.
Benefits At National Level
Benefits At National Level
The digital payment switch does not only benefit individuals of the country but also the overall economy in order to create a cashless society. 1: At a National level digital and financial inclusions could be created to position Myanmar as an economic and financial force including but not limited to supporting SMEs in Myanmar and banking the unbanked population. 2: The digital payment system will help flow the Myanmar Kyats between different financial institutions and in return will help improve the digital Myanmar Kyats usage. 3: This will also act as a door to Cross-Border Economy in SEA regions as the digital payment switch will be the most suitable and secure in implementing cross-border transactions.
The digital payment switch does not only benefit individuals of the country but also the overall economy in order to create a cashless society. 1: At a National level digital and financial inclusions could be created to position Myanmar as an economic and financial force including but not limited to supporting SMEs in Myanmar and banking the unbanked population. 2: The digital payment system will help flow the Myanmar Kyats between different financial institutions and in return will help improve the digital Myanmar Kyats usage. 3: This will also act as a door to Cross-Border Economy in SEA regions as the digital payment switch will be the most suitable and secure in implementing cross-border transactions.
Benefits For Merchants
Benefits For Merchants
As for the merchants in the country, there are a number of benefits waiting for them. There will be fewer accounts for the merchants to manage which means they will be able to avoid the need to have different accounts in hand to accept digital payments from different customers. Transactions without physical cash or card transactions are going to be made and this will reduce the troubles of managing physical cash. Customers making transactions using their mobile phones make it more convenient for the merchants to manage amounts in a short period of time. Customer reach and sales for both big and small merchants will increase due to the use of National QR like the customer base of different originating financial institutes which may or may not be the same as their bank accounts or mobile wallet accounts.
As for the merchants in the country, there are a number of benefits waiting for them. There will be fewer accounts for the merchants to manage which means they will be able to avoid the need to have different accounts in hand to accept digital payments from different customers. Transactions without physical cash or card transactions are going to be made and this will reduce the troubles of managing physical cash. Customers making transactions using their mobile phones make it more convenient for the merchants to manage amounts in a short period of time. Customer reach and sales for both big and small merchants will increase due to the use of National QR like the customer base of different originating financial institutes which may or may not be the same as their bank accounts or mobile wallet accounts.
Benefits For Public
Benefits For Public
For the public, the convenience of using the National QR will be increased since there are less hassle to carry cash and spend their time queuing at the respective banks to withdraw and. Users don’t have to worry about the availability of ATMs in malls nearby or near their locations when they are far from banks. As the National QR allows every user with smartphones to be able to make digital payments anywhere even without the access to the traditional banking services, increasing the financial inclusion within the country. Since any user with the access of a smartphone will be able to make financial payments, this means a faster and more efficient payment processing is assured for the public. The National QR will be useful for the urgent or time-sensitive transactions and avoid the traditional bank transaction methods which can take a long time for urgent cases. So some individuals tend to search for outside merchants who can process payments faster than the traditional bank transactions which can lead to fraudulent risks. Using the National QR, this risk and also the risk followed by having to carry cash around will be minimized until they are gone, providing peace of mind for the users.
For the public, the convenience of using the National QR will be increased since there are less hassle to carry cash and spend their time queuing at the respective banks to withdraw and. Users don’t have to worry about the availability of ATMs in malls nearby or near their locations when they are far from banks. As the National QR allows every user with smartphones to be able to make digital payments anywhere even without the access to the traditional banking services, increasing the financial inclusion within the country. Since any user with the access of a smartphone will be able to make financial payments, this means a faster and more efficient payment processing is assured for the public. The National QR will be useful for the urgent or time-sensitive transactions and avoid the traditional bank transaction methods which can take a long time for urgent cases. So some individuals tend to search for outside merchants who can process payments faster than the traditional bank transactions which can lead to fraudulent risks. Using the National QR, this risk and also the risk followed by having to carry cash around will be minimized until they are gone, providing peace of mind for the users.
By embracing a unified QR system, Myanmar is poised to create a more efficient and user- friendly digital payment landscape.With this system in place, the individuals of Myanmar will have access to a wide range of digital payment options, empowering them to securely obtain essential goods and services.
By embracing a unified QR system, Myanmar is poised to create a more efficient and user- friendly digital payment landscape.With this system in place, the individuals of Myanmar will have access to a wide range of digital payment options, empowering them to securely obtain essential goods and services.