Payment, FinTech, InsureTech & +ve Finclusion need by each ASEAN Market - Myanmar.

In this next series of articles for ASEAN, we will go into each market and answer 4 key questions to get insights into how a market is positioned for payments today and what the next big things are in FinTech & InsureTech.

So lets get going with Myanmar!

1. What is the best Payment app in Myanmar

2. What is the next big thing in FinTech in Myanmar

3. What is the next big thing for InsureTech in Myanmar

4. What does the Myanmar market need to improve Financial Inclusion and foster Wealth growth.

Exec Summary

• Best Payment App: Wave Money is the best payment app in Myanmar due to its market dominance, extensive agent network, and accessibility for the unbanked. For urban users with bank accounts, KBZPay is a strong alternative due to its simplicity and banking integration.
• Next Big Thing in FinTech: Interoperable payment ecosystems, supported by AI and blockchain, will likely dominate Myanmar’s fintech future, enhancing accessibility and efficiency. Continued regulatory support and infrastructure investment are critical to realizing this potential.
• Next Big Thing in InsureTech: Micro-insurance delivered via mobile apps, supported by telecom-bank partnerships, is the most promising InsureTech trend. Scaling will depend on improving digital literacy and infrastructure.
• Needs for Financial Inclusion and Wealth Growth: Myanmar needs political stability, interoperable digital platforms, enhanced financial literacy, and microfinance/insurance to improve inclusion. Wealth growth hinges on SME financing, e-commerce integration, and regulatory support, but political stability is critical for sustained progress..

The answers for the curious cats and data dawgs.........

Best Payment App in the Myanmar Market

The best payment app in Myanmar depends on factors like market penetration, usability, merchant acceptance, and accessibility, particularly in rural areas where 68% of the population resides. Wave Money stands out as the dominant player, holding an 80% share of the mobile financial services market and offering extensive services through a vast agent network and its WavePay app. Other notable apps include KBZPay, AYA Pay, CB Pay, and Onepay, each with unique strengths, but Wave Money’s widespread adoption and infrastructure make it the leading choice.

• Wave Money: As a joint venture between Telenor, Yoma Bank, and First Myanmar Investments, Wave Money has been a pioneer in Myanmar’s fintech landscape since its launch in 2016. It holds an 80% market share in mobile financial services, with over 65,000 shops and 58,000 agents (many women-led) facilitating cash-in, cash-out, money transfers, bill payments, and mobile top-ups. Its WavePay app, introduced in 2020, enables seamless digital payments and processed US$8.7 billion in transactions by 2020 (12% of Myanmar’s GDP). Its accessibility (requiring only a mobile number and national registration card) and extensive rural reach make it highly inclusive.
• KBZPay: Operated by KBZ Bank, one of Myanmar’s largest banks, KBZPay is user-friendly and leverages the bank’s established network for bill payments, loan repayments, and mobile top-ups. It’s particularly popular in urban areas due to its integration with banking services and is noted for its simplicity, contributing to economic growth through faster cash flow.
• AYA Pay: Managed by AYA Bank, this app supports a range of services, including bill payments, money transfers, and card top-ups. It’s widely adopted in urban centers but less prevalent in rural areas compared to Wave Money.
• CB Pay: Offered by CB Bank, CB Pay is part of its innovation efforts through the API-Exchange platform. It’s competitive in urban markets but lacks the rural penetration of Wave Money.
• Onepay: Developed by Ronoc Myanmar, Onepay focuses on financial inclusion by allowing users without bank accounts (common in rural areas) to make payments via a smartphone and registered SIM. It integrates financial and lifestyle services but has lower adoption due to limited promotion.
• Others: Apps like TrueMoney, M-Pitesan (Ooredoo), OK$, and MPT Money offer similar services but have smaller market shares. TrueMoney and M-Pitesan are telecom-led, appealing to rural users, while OK$ focuses on secure transactions for e-commerce and tickets. These apps lack the scale and interoperability of Wave Money.

Critical Perspective: Wave Money’s dominance is driven by its early entry, telecom partnerships, and extensive agent network, making it the go-to for rural and unbanked populations. However, its reliance on agents for cash-in/cash-out suggests limited digital wallet adoption, as many users still prefer cash transactions. KBZPay and AYA Pay benefit from strong banking ties but are less inclusive for rural users without bank accounts. Onepay’s model is promising for inclusion but needs better marketing to compete. The lack of interoperability among bank-led apps (e.g., KBZPay, AYA Pay) remains a challenge, limiting seamless transfers across platforms.

Next Big Thing in FinTech in Myanmar

The next big thing in Myanmar’s FinTech sector is likely to be interoperable digital payment ecosystems powered by advanced technologies like AI, blockchain, and big data analytics. These ecosystems aim to unify bank-led and telecom-led platforms, enhance cross-border payments, and improve financial inclusion for Myanmar’s largely unbanked population. The Central Bank of Myanmar’s (CBM) push for interoperability, combined with innovations like digital lending and e-commerce integration, will drive this transformation.

• Interoperable Payment Systems: Myanmar’s fintech landscape suffers from fragmentation, with bank-led apps (e.g., KBZPay, AYA Pay) not interoperable with telecom-led or independent apps (e.g., Wave Money, TrueMoney). The CBM’s efforts, such as the upgraded CBM-NET2 system, aim to create a unified payment infrastructure, enabling seamless transfers across platforms. Initiatives like the Fintech Challenge Myanmar (2019) and partnerships with international organizations (e.g., UNCDF, ADB Ventures) emphasize interoperability to boost financial inclusion.
• AI and Big Data in Digital Lending: AI-driven credit scoring and risk assessment are emerging trends, addressing the lack of credit histories for Myanmar’s unbanked population (over 50% lack formal banking access). Fintechs like Mother Finance and MO are leveraging AI to offer microloans through mobile apps, enabling low-income households to access credit. These solutions align with Southeast Asia’s broader fintech trends, as seen in Indonesia, where AI enhances loan matching and fraud prevention.
• Blockchain and Cross-Border Payments: Blockchain is gaining traction for secure, low-cost cross-border remittances, critical for Myanmar’s migrant workers. The CBM’s openness to international payment companies like Visa and MasterCard suggests potential for blockchain-based solutions to streamline remittances and reduce reliance on unregulated lenders charging high interest rates (10%+ monthly).
• E-Commerce Integration: With digital commerce projected to reach US$6,087 million in 2024, fintechs are integrating payment solutions with e-commerce platforms. Partnerships like T2P’s with City Mart for loyalty and wallet programs highlight this trend, driving adoption of digital payments for online shopping.

Critical Perspective: Interoperability is crucial to overcoming Myanmar’s fragmented fintech market, but political instability since the 2021 military coup and sanctions may hinder infrastructure development. AI-driven lending shows promise but requires robust data privacy frameworks to build trust, given widespread skepticism of digital systems. Blockchain’s potential is high, but limited electricity access (only 50% of the population has reliable power) and low digital literacy could slow adoption.

Next Big Thing in InsureTech in Myanmar

The next big thing in Myanmar’s InsureTech sector is micro-insurance delivered through mobile platforms, leveraging partnerships between telecoms, banks, and insurers to reach the unbanked. These solutions, often integrated with existing mobile money apps like Wave Money, focus on affordable, small-scale policies tailored to low-income and rural populations, with potential for AI-driven personalization and claims processing.

• Micro-Insurance via Mobile Platforms: Myanmar’s insurance market is underdeveloped, with low penetration due to mistrust and limited access. Micro-insurance, offering low-cost policies for health, agriculture, or disaster coverage, is gaining traction. Fintechs like Wave Money and telecom-led platforms (e.g., M-Pitesan, TrueMoney) are integrating insurance payments into their apps, allowing users to pay premiums via mobile wallets.
• Takaful and Sharia-Compliant Products: Given Myanmar’s diverse population, including a Muslim minority, Islamic insurance (Takaful) products could emerge as a niche but growing segment. Partnerships with local banks and fintechs could facilitate digital Takaful platforms, similar to trends in Brunei.
• AI and Automation: AI-driven InsureTech solutions, such as automated claims processing and risk assessment, are emerging. These technologies reduce costs and improve accessibility for rural users, who face barriers to traditional insurance due to infrastructure gaps.
• Collaborations with Telecoms and Banks: Major players like KBZ Bank and Ooredoo (M-Pitesan) are exploring insurance offerings through their mobile platforms. For example, CB Bank’s Innovation Lab on API-Exchange could enable InsureTech integrations, streamlining policy distribution.

Critical Perspective: Micro-insurance is well-suited to Myanmar’s rural majority, but low financial literacy and trust issues hinder adoption. Political instability and economic challenges (e.g., GDP per capita of $1,149) limit insurers’ ability to scale. AI-driven solutions require stable internet and electricity, which are inconsistent in rural areas. Takaful’s potential is speculative, as Myanmar’s insurance sector focuses more on general products, but cultural alignment could drive niche growth.

What Myanmar Needs to Improve Financial Inclusion and Net Wealth Growth

Myanmar’s market needs to enhance financial inclusion and foster wealth growth through improved digital infrastructure, increased financial literacy, interoperable payment systems, and affordable financial products like microloans and micro-insurance. Addressing trust issues, regulatory challenges, and infrastructure gaps (e.g., electricity access) while leveraging AI and partnerships will drive progress in a country where only 50% of adults have bank accounts and economic challenges persist.

For Financial Inclusion:

• Strengthen Digital Infrastructure: With mobile penetration at 95% (from 10% in 2014), Myanmar has leapfrogged traditional banking, but only 50% of the population has electricity access, limiting digital financial services. Investments in 3G/4G networks and power infrastructure are critical.
• Promote Financial Literacy: Low trust in digital systems and limited understanding of mobile wallets (used primarily for remittances via agents) hinder adoption. Programs like Wave Money’s partnership with UNCDF for digital gamification to educate women (only 29% have formal financial access) should be expanded.
• Interoperable Platforms: Fragmentation between bank-led and telecom-led apps limits seamless transactions. The CBM’s CBM-NET2 and regulatory support for mobile financial services (MFS) since 2016 are steps forward, but full interoperability is needed to include rural users.
• Affordable Financial Products: Microfinance (e.g., Mother Finance, MO) and micro-insurance via mobile apps can reach the unbanked, particularly rural farmers (70% of the population). These products address the high demand for credit unmet by traditional banks.
• Regulatory Support: The CBM’s 2016 MFS regulations and initiatives like the Financial Inclusion Roadmap (2013) have increased banking access from near-zero to 50% by 2018. Continued regulatory sandboxes and partnerships (e.g., Fintech Challenge Myanmar) can foster innovation while ensuring consumer protection.

For Wealth Growth:

• Digital Lending and Investment Platforms: AI-driven microloan platforms (e.g., Mother Finance) and digital investment tools can help households and SMEs build wealth. These platforms create credit histories, enabling access to larger loans.
• E-Commerce and Payment Integration: Linking fintech with e-commerce (e.g., T2P’s City Rewards) can boost SME growth and household income. Digital commerce is projected to grow significantly, offering wealth-building opportunities.
• SME Financing: SMEs, critical to Myanmar’s economy, need affordable credit. Fintechs like ThitsaWorks provide banking software for microfinance institutions, enabling scalable lending.
• Public-Private Partnerships: Collaborations between the CBM, international organizations (e.g., UNCDF, ADB), and fintechs can drive innovation. The Fintech Challenge Myanmar and investments like Ant Group’s US$73.5 million in Wave Money highlight this potential.
• Address Unregulated Lending: Unregulated lenders charging 10%+ monthly interest rates exploit the unbanked. Digital platforms offering transparent, regulated loans can redirect savings toward wealth-building.

Challenges to Address:

• Political Instability: The 2021 military coup and sanctions disrupt economic stability and foreign investment, slowing fintech growth.
• Trust and Literacy: Mistrust of banks and low digital literacy limit adoption. Only 6% of adults use multiple financial products, reflecting cash-based preferences.
• Infrastructure Gaps: Limited electricity and internet access in rural areas hinder digital financial services.
• Regulatory Balance: Regulations must encourage innovation while preventing monopolies and ensuring cybersecurity, given rising fraud risks like deepfakes.

Critical Perspective: Myanmar’s rapid mobile penetration offers a foundation for financial inclusion, but political and economic challenges (e.g., low GDP per capita, sanctions) complicate progress. Financial literacy initiatives are underfunded, and agent-based models (e.g., Wave Money’s cash-in/cash-out) indicate limited true digital adoption. Wealth growth requires addressing systemic issues like unregulated lending and infrastructure gaps, which fintech alone cannot solve without government stability.