Southeast Asian payment service provider 2C2P has been among one of five firms that recently secured cross-border remittance licenses from the Central Bank of Myanmar (CBM) and is set to roll out inbound and outbound money transfer services in Myanmar “within the next three months,” 2C2P’s head of Myanmar operations Pyay Nyein told KrASIA.
While 2C2P has already received a cross-border remittance license from the Central Bank of Thailand in August last year, this new license in Myanmar will foster the money transfer between the two countries. “The first corridor we will serve is cross-border remittance between Myanmar and Thailand,” said Pyay Nyein.
The new license is expected to benefit Burmese migrants in Thailand, which are the source of 68% of informal remittances to Myanmar.
Pyay Nyein added that cost and user experience are the two important factors for digital remittances to gain greater adoption in Myanmar, where only USD 2.8 billion has been transferred through formal channels last year, while USD 5.2 billion went through unofficial routes, according to data from the Ministry of Labor, Employment, and Social Security.
2C2P will use its digital payment arm NearMe, which raised seven-figure funding from Japanese conglomerate Sumitomo Corp in September, and deploy the license through its “existing payments IT infrastructure, mobile wallets, and cash agents.”
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