PHNOM PENH: With the unveiling of the CSS initiative this week to ease interbank transactions and the overall increase in cashless payments following the Covid-19 crisis, Cambodia is seeing a significant rise in mobile payments as its economy continues to develop towards modern trends.
According to a National Bank of Cambodia (NBC) report, 2022 saw the number of e-wallet accounts increase to 19.5 million and the value of retail electronic payments increased by 34% to 1,110.6 trillion Riels (approximately US$272 billion), equivalent to more than 9 times Cambodia’s Gross Domestic Product (GDP). Shifting practices in consumer payment habits are in line with the government’s policy in promoting the digital economy and society, said the NBC report, released on July 6.
In May, Visa released a study on Cambodian’s purchasing method habits. The survey found that QR code usage continues to grow annually with 68% of consumers said they use QR for payments, up from 36% in 2021 and 12% in 2020. While not everyone is using technology for payments and purchases, the interest is there. 90% of survey respondents expressed interest in paying by QR codes and interest in contactless cards showed an increase as well. This increase shows that the benefits of digital-first payment methods have become a permanent feature of Cambodian purchasing habits.
According to the NBC report, “The use of mobile banking services has steadily accelerated as supported by the growth of mobile phone and internet penetration rates coupled with the availability of user-friendly digital financial services, enabling customers to conduct a wide range of digital banking operations, including loan repayment, fund transfer, bill payment, phone top up, payroll, balance inquiry etc.”
The bank called for promotion of financial and digital literacy to reduce the risks of digital payments. Meanwhile, the NBC plays its own role in payment security. “Cybersecurity and consumer protection have also been enhanced to ensure stability in the banking system. Moreover, on-site and off-site inspections are continuously conducted to monitor business progress and challenges and set corrective recommendations for risk mitigation,” said the report.
