Myanmar's Emerging Fintech Players to Keep an Eye On
In the heart of Southeast Asia, Myanmar's fintech industry is experiencing a significant surge, driven by rising digital payment usage and strong investor interest. This transformation is evident in the soaring number of digital and card transactions, which reached 1.57 billion in 2022, amounting to a total value of MMK 12.3 trillion (US$3.8 billion).
One of the key players in this digital revolution is Wave Money, a prominent financial service provider operating over 65,000 shops nationwide. In 2021, Ant Group, a global leader in digital payments, invested US$73.5 million in Wave Money to expand digital payment networks and accelerate adoption. By 2020, Wave Money had processed US$8.7 billion in transactions, accounting for around 12% of Myanmar's GDP.
The mobile wallet application WavePay, introduced by Wave Money in mid-2020, has catered to over 11.5 million customers. Wave Money's success is noteworthy, considering that approximately 80% of Myanmar's 55 million people are unbanked, presenting a significant potential for fintech solutions.
Another fintech player making waves in Myanmar is Ongo, a mobile money service owned by Ronoc Myanmar. Launched in 2016, Ongo is an app-based platform catering to businesses and consumers in Myanmar. Ongo offers a digital payment system that reduces the cash handling burden for various sectors, including FMCG product distributors, e-commerce sites, lenders, and travel companies. The service also has an extensive network of cash agents, with over 300 in Yangon and over 30 in Mandalay, to facilitate the conversion of cash into digital e-money.
For individual consumers, the Ongo app offers convenience for online shopping, mobile credit top-ups, person-to-person transfers, and earning free gifts and rewards. The app also eliminates the need for individual cash salary payments, making it a valuable tool for businesses.
Ronoc Myanmar, founded in 2013, focuses on developing networks, forging relationships, and evaluating investment opportunities in Asia. The company, based in Dublin, Ireland, with offices in London, New York, Singapore, and Yangon, has played a crucial role in the growth of Myanmar's fintech sector.
Onepay, launched in 2018, is another lifestyle app designed to connect users and businesses in Myanmar, facilitating financial transactions on a unified platform. The app targets financial inclusion, particularly for individuals without NRCs who cannot open bank accounts, a common issue in rural areas. Onepay aims to integrate financial and lifestyle activities, making it easier, faster, and smarter to manage payments and daily transactions.
As Myanmar continues to embrace digital payments, the future of its fintech sector looks promising. With over 50% of the adult population having a bank account by 2020, reflecting growth in financial inclusion, the stage is set for further expansion and innovation. While information regarding potential investments in Myanmar by Modus Operandi in 2023 to expand in East Asia is not yet available, it is clear that the fintech sector in Myanmar is poised for continued growth and development.
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