International payment services suspended for Myanmar users

Two international payment service companies widely used by people who earn income online have announced that they will stop providing their services to users in Myanmar starting this month. The companies, Switzerland-based Perfect Money and Payoneer, headquartered in New York, are popular with online merchants, freelancers, and social media content creators as a means of receiving payment for their work. According to a Naypyitaw resident who has been using Payoneer, the company cited complex regulations in military-ruled Myanmar as its reason for suspending services in the country. “Myanmar banks are not included or recognised on global platforms, so there’s this challenge of how to access our money,” he said. Perfect Money has not only stopped allowing Myanmar residents to open new accounts, but will also close existing accounts on November 19, giving users 30 days to withdraw their remaining funds. Similarly, Payoneer has also banned new account creation for Myanmar nationals and has indicated that Myanmar will be removed from its list of serviceable countries. The exact status of old accounts is still unclear. The Naypyitaw resident who uses Payoneer's services said that in the past, people could use accounts with the company to receive income earned by creating popular videos on TikTok. “TikTok doesn’t pay money directly to Myanmar. But people could open accounts using addresses in Japan or the USA to get paid, and then withdraw the money through Payoneer. But now we can’t do that,” he said. This is not the first time that people in Myanmar have lost access to such services. The London-based payment company Wise ceased operations in Myanmar in August 2022, and PayPal, another major international payment platform, has also stopped allowing Myanmar residents to open accounts. While international payment cards issued by domestic banks could be used to receive money before the military coup in Myanmar, this is no longer possible. Now intermediary payment platforms or foreign bank accounts are needed, according to those earning income on freelance websites. The shutdown of income channels means that people seeking online work in Myanmar are facing increasing difficulty, forcing them to look for opportunities outside the country. “I have a YouTube channel, but I haven’t started monetising it yet. I’ve also applied for work on freelance websites. They said that, when I earn money, it will have to go through a foreign bank,” said a graphic designer based in Yangon. In addition to payment difficulties, Myanmar residents trying to earn through social media are seeing reduced payments compared to other countries, leading to a number of famous bloggers moving abroad. Myanmar’s economy has been devastated by the February 2021 coup, resulting in a scarcity of job opportunities in the country. Now, with the suspension of online payment services, the avenues for earning foreign currency have become even more limited. The US, EU, and other Western nations have imposed financial sanctions on Myanmar’s military regime, restricting arms sales and freezing assets. On June 12, the US government also announced sanctions against Myanmar’s Foreign Trade Bank and Myanmar Investment and Commercial Bank. Additionally, Myanmar has been included in the Financial Action Task Force grey list, which has led international banks to scrutinise transactions related to Myanmar more tightly. Myanmar nationals living abroad, including in Thailand, are also facing difficulties opening bank accounts and making international transactions.

International payment services suspended for Myanmar users

The move by two popular platforms will make it more difficult for people living in the country to earn income online

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