MySQUAR soft launches cross-border remittance service

Myanmar-language social media, entertainment and payments platform MySQUAR announced the soft launch of its cross-border remittance service, the initial offering on its mobile money platform, on Thursday.

The AIM-traded firm said that, following the beta remittance tests conducted in June between MySQUAR and its partners, the Singapore-to-Myanmar remittance corridor became fully operational shortly after.

During the pre-launch phase in July, the service was tested for any anomalies, and the company said it was now ready to go live.

Activity would be “closely monitored”, the board said, to ensure there are no service issues before moving ahead with a full launch.

MySQUAR said its platform would enable money loaded into the digital wallet of its Singapore partner, Uber Remit, to be sent almost instantly to the recipient's digital wallet of its Myanmar partner, OK Dollar, a mobile payment and digital wallet provider in the country.

On the Singapore side, money could be sent using a debit card or by online bank transfer.

Recipients in Myanmar could withdraw funds at more than 8,000 agent outlets nationwide and at certain bank and post office branches.

MySQUAR said recipients could also retain the money in their digital wallet to make purchases at more than 200,000 merchants, or make a transfer to another OK Dollar digital wallet account.

It said Singapore was selected as the initial corridor to launch, as the average annual income of the Myanmar workers was much higher than in other countries.

MySQUAR said it was initially targeting the Myanmar customer segment residing in Singapore that was banked.

It was said to be currently assessing other ‘cash in’ options, such as utilising agents, and once those were available, it would roll out the app to the wider Myanmar community in Singapore, including the unbanked population.

“The existing cross-border remittance options from Singapore to Myanmar are either expensive, ranging from 10-15% of the transfer amount through formal channels, or carry higher risk through cheaper informal channels,” said MySQUAR chief executive Eric Schaer.

“We have redefined the Singapore-Myanmar remittance corridor by offering a service that combines convenience and low cost through a licensed and fully compliant channel.”

Schaer said the World Bank reported the annual remittances into Myanmar to be around $8bn as at 2015.

“A full launch of the remittance service is anticipated by the end of September 2018 and we look forward to providing additional mobile money options as we move towards becoming a leading payment solutions provider in Myanmar.”