FPT selected to implement Myanmar financial switching system

On the 1^st of August, FPT Corporation was officially selected by Myanmar Payment Union (MPU) as the prime investor to implement a national financial switching system for Myanmar. This event marks a significant improvement opportunity for the economy of Myanmar, where over 95% of transactions are still made in cash.

The contract establishes the co-operation of FPT and MPU under a profit share agreement. The entire financial switching system will be funded and implemented by FPT with a project timeline of one year from August 2016. FPT will offer PMU a 10-year lease on the system and generate income from the charges on electronic transactions. FPT Information system (FPT IS), a member company of FPT, is assigned to implement this project. 24 of 40 local financial organizations have been connected to MPU and this number is likely to increase in the future.

Although the total population of Myanmar is around 55 million, and there are now over 2000 ATMs, 4000 POS, and some 2 million bank cards have been issued in Myanmar, over 95% of transactions are still made in cash. The deployment of a national financial switching system will help Myanmar accelerate the process of evolving from its cash payment system to electronic payment solutions. The new payment system will be implemented for typical banking services such as ATM, POS, E-Commerce, value added services for mobile devices, EMV and electronic billing.

“In recent years, FPT has been actively applying a new business method of leasing model. This demonstrates FPT long-term commitment to working with our strategic customers to bring mutual benefits. Under this project, FPT in association with its partners will assist MPU and the Myanmar Government to speed up the modernization of the country’s payment system. It is our strong belief that this new business model will bring better result than the traditional ways”, said FPT IS CEO Mr. Pham Minh Tuan. In addition, the signing of this contract is considered an important stepping stone for the FPT to further expand into Myanmar banking and finance market.

The National Payment Corporation of Vietnam (NAPAS) is an FPT strategic partner with over 10 years of experience in implementing Vietnam’s financial switching system. NAPAS are now responsible for the consultation on policies and payment business to Myanmar. It is expected that FPT and NAPAS will have further cooperation in order to provide similar services for other developing countries in the region.

FPT has successfully implemented switching financial systems for a large number of customers, both domestic and international, such as Vietnam National Financial Switching Joint-Stock Company (Banknetvn), the National Bank of Cambodia, Vietcombank, BIDV and Sacombank. These projects have contributed to the enhancement of FPT capabilities in deploying complicated business information systems for major banks and financial organizations in Vietnam as well as throughout the world.