MySQUAR, the Myanmar-language social media, entertainment and payments platform whose principal activity is to design, develop and commercialise Myanmar-focused internet-based mobile applications, has entered into agreements with Uber Remit Ltd (“Uber Remit”), a New Zealand incorporated cross-border remittance and mobile money transfer provider, and Internet Wallet Myanmar Limited, a Myanmar company trading as OK Dollar (“OK Dollar”), a mobile payment and digital wallet provider in Myanmar (the “Agreements”). MySQUAR expects that the Agreements will allow the Company to launch a mobile money platform (the “Platform”) by the end of September 2018.
The Uber Remit Technology Services Agreement
Uber Remit partners with local and international payment platforms to allow instant and fully compliant mobile cross‐border remittance providing foreign exchange delivery channels to over 50 countries 1,200 registered banks and 200 million mobile wallets. Importantly, Uber Remit holds the partnerships and the regulatory compliance approvals in Singapore that will permit the opening of a remittance corridor between Singapore and Myanmar.
SQUAR PTE Ltd (the Company’s wholly owned Singapore subsidiary) and Uber Remit have agreed to jointly promote the use of the mobile money platform to send and receive amounts under USD 400 per transaction, as currently permitted by the laws of Myanmar, utilising Uber Remit’s technology. The agreement provides for a revenue share of the net transaction margin from the foreign exchange rate spread with the Uber Remit agreement remaining in effect until either party cancels with one month’s notice.
Singapore has a sizable population of overseas workers and students from Myanmar and as such, is a natural starting point for the Company to open a remittance corridor. It is estimated by Uber Remit that the volume of transactions per year between Singapore and Myanmar is between USD 400-800 million. The cost to remit funds is between 3-5% of the total amount depending on the channel used. The Company initially targets capturing 1% of this market by offering convenience and safety combined with a competitive fee and exchange rate.
The OK Dollar Payment Gateway Agreement
In order to make the proposed remittance service attractive to customers looking to send money to Myanmar the Company’s wholly owned Myanmar subsidiary, MySQUAR Limited, has entered into a Payment Gateway agreement with OK Dollar.
OK Dollar operates a fast, secure and safe mobile payment system that offers online purchase, mobile phone top-up, bill payment and money transfer among other services. It holds one of the three mobile financial licences that have been issued in Myanmar.
In Myanmar, it is expected that funds remitted will be transferred in real-time to an OK Dollar digital wallet where these funds can then be used for mobile purchases or for cash-out through OK Dollar’s nationwide agent network.
In addition, MySQUAR expects to integrate OK Dollar’s payment services into its mobile games, social app and marketplace so that users with an OK Dollar digital wallet are able to make purchases.
The Agreement with OK Dollar may be terminated by either party with 60 days notice.
Prior agreement with MyPay Limited
As originally announced on 19 October 2015 the Company entered into a five year service agreement with MyPay Limited for the provision of mobile payment services whereby the Company received fees for the integration of MyPay Limited’s services, this agreement also provided for an ongoing revenue share between the parties. The Company is currently in discussions with MyPay Limited in connection with this agreement and expects to make further announcements in due course.
Eric Schaer, CEO of MySQUAR, said: “The agreements with Uber Remit and OK Dollar are another solid step in our journey to become a leading payment solutions provider in Myanmar. We’re aiming to launch this mobile money platform by the end of September 2018 and we expect it will assist in further monetising our registered user base. Currently, only about 10-20% of the population in Myanmar has a bank account. However, smartphone penetration is high. This increases the likelihood for rapid adoption of digital wallets and makes the remittance process practically seamless. Inbound remittances from the Myanmar diaspora is reported to be around USD 8 billion annually according to the World Bank. With around 50% of these remittances occurring through informal channels, there is pressure to formalise cross-border remittances and our mobile money platform is expected to form a convenient, safe and affordable way of meeting this gap in the market. Upon successful implementation of the Singapore-Myanmar remittance corridor, we will likely seek to expand into other markets with a large Myanmar diaspora and open new remittance corridors with expected target markets such as the Middle East, Thailand and Malaysia into Myanmar.”
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