CBM eyes digital payment growth

The Central Bank of Myanmar will accelerate the digital payment system in the State, according to its notification released on 15 July.
The CBM is endeavouring to improve payment service providers’ platforms providing digital transaction services across the country, secure the digital payment system and reduce the use of cash among people.
The CBM has permitted digital banking services for bank institutions, i-banking, mobile banking, mobile pay and mobile financial services.
The CBM launched MMMQR Specification Version 1.0 for QR code payment in January 2019, achieving interoperability between payment systems of financial institutions through MMQR Specification Version 1.0 and stepping up to use crop-border QR code payment interoperability, the notification mentioned.
The CBM issues merchant acquiring service licences so that acquiring banks can process payments from customers on behalf of merchants.
To meet the goals and objectives of the National Payment Strategy (2020-2025), National Payment System Governing Committee comprising the CBM and other ministries concerned has been formed and coordination matters are being undertaken.
Thanks to the continuous efforts to promote digital payment (i-banking, m-banking, mobile pay and mobile wallet services), the digital payment sector boomed to K31.666 billion in 2022, which was a 47 per cent increase compared to that of 2021, the CBM mentioned in the notification.
The CBM has been instructing necessary guidelines to the banks and mobile financial services to turn Nay Pyi Taw into a digital city. Starting from May 2023, the CBM has been implementing digital salary payments to the officials and staff under the ministries to strengthen digital payments in the capital city.
With the digital payment platform growing, Currency in Circulation-CIC has declined in the State’s economy. The CIC growth has fallen to 29 per cent in 2022 and 11 per cent as of May 2023 from 48 per cent in 2021.
The CBM will proceed to reduce cash use, raise awareness of digital payment systems among the public and drive economic growth through digital payment platforms. — NN/EM