Can Foreigners Use Bakong App for Payments?

Foreign Tourists will be able to make payments using Bakong App

The National Bank of Cambodia (NBC) is set to introduce the Bakong payment system tailored for tourists. This initiative aims to simplify financial transactions for visitors by allowing them to use digital payments instead of carrying physical dollar bills. This announcement was made by Ms. Chea Serey, the Governor-General of NBC, during the bank’s first half-year meeting on July 19, 2024.

“Soon we will launch Bakong for tourists,” Ms. Chea Serey stated, explaining that tourists visiting Cambodia can download the Bakong app to facilitate their transactions. Even without a local bank account, tourists can use their credit cards, such as Visa, MasterCard, or UnionPay, to pay for goods and services directly through the app.

The introduction of the Bakong system will streamline the payment process for tourists in Cambodia. This system will provide a new digital cash payment experience and address various challenges in the tourism sector. “This will address some of the challenges that our tourists, especially in Siem Reap, face in spending large amounts of dollars,” Ms. Chea Serey noted.

This initiative is in response to Prime Minister Hun Manet’s directive to review the problematic conditions related to the exchange of torn and dirty dollar bills. By launching the Bakong system, the NBC aims to enhance the tourism and hospitality experience in Cambodia. This is a challenge for us that needs to be addressed to facilitate the experience of our tourists in Cambodia.”

The NBC has developed a comprehensive payment system to make digital payments easier, more efficient, and faster, both for domestic and cross-border transactions, contributing to the development of Cambodia’s digital economy and society. Among all the payment systems, Bakong offers the most extensive range of functions, driving its growing usage and contributing to an improved financial environment and Cambodia’s international image.

Currently, the NBC has established cross-border payment agreements with Thailand, Laos, Vietnam, and international company UnionPay. It is also expanding partnerships with regional countries and companies such as China, Japan, India, South Korea, Singapore, Malaysia, and Alipay.

The National Bank has established four emergency mechanisms to be implemented in Siem Reap:

1. The Siem Reap Commercial Bank branch is required to accept old or dirty US dollars from customers without any charge.

2. For very old dollar banknotes that should no longer circulate in the market, the commercial bank in Siem Reap will exchange them for new notes at the National Bank of Siem Reap branch at no cost, without needing to send them to the head office in Phnom Penh.

3. All banking and financial institutions in Siem Reap must place $20 and $50 US dollar banknotes in ATMs instead of $100 bills to facilitate tourist transactions. Deposits will still be accepted on deposit machines.

4. The National Bank will organize outreach programs for money changers, and hotel and restaurant owners to help them understand and support these measures, and to cooperate in implementing these mechanisms effectively.

In the past five months, Cambodia received over $2.9 million from international tourists, marking a 22.1 percent increase compared to the same period in 2023. Thai tourists ranked first with 770,000 visitors, followed by 520,000 Vietnamese tourists and 320,000 Chinese tourists.

Specifically, Siem Reap welcomed more than 520,000 foreign tourists who purchased tickets to visit Angkor in the first half of 2024, generating over $24 million in revenue, a 36 percent increase from the same period in 2023.

Benefits of the Bakong System for Tourists:

1. Convenient Digital Payments: Tourists can use the Bakong app for transactions, avoiding the hassle of carrying and exchanging physical dollar bills.
2. International Credit Card Compatibility: The system supports Visa, MasterCard, and UnionPay, allowing tourists to use their home country credit cards easily.
3. Enhanced Tourist Experience: Simplified payment processes improve the overall travel experience, especially in popular tourist destinations like Siem Reap.
4. Addressing Payment Challenges: The system helps mitigate issues related to handling large amounts of cash and the exchange of damaged or dirty bills.
5. Boosting Tourism and Hospitality: By improving payment infrastructure, Cambodia becomes a more attractive destination for international tourists.
6. Promoting Digital Economy: The Bakong system contributes to the growth of Cambodia’s digital economy, enhancing its financial ecosystem.
7. Cross-Border Payment Integration: The system supports seamless cross-border payments with various regional countries and international partners.
8. Increased Revenue from Tourism: Easier payment methods can lead to increased spending by tourists, boosting the local economy.
9. Improved Financial Image: The adoption of advanced payment systems enhances Cambodia’s reputation in the global financial market.
10. Strategic Partnerships: Collaboration with international payment companies and regional partners strengthens Cambodia’s financial ties and infrastructure.

Latest Update on August 19, 2024

The National Bank of Cambodia (NBC) launched the Bakong Tourists mobile payment system on August 19, aimed at simplifying transactions for travelers, promoting the Cambodian riel, and enhancing the tourism sector. Key points from the article include:

1. Launch and Functionality: The Bakong Tourists app, similar to the existing Bakong system, enables seamless, fee-free cross-bank payments, and is accessible via iOS and Android platforms. Tourists can spend up to $1,000 per day, or up to $3,000 after identity verification.
2. Widespread Adoption: The app supports payments via QR codes at 3.3 million locations across Cambodia, providing greater convenience compared to traditional credit cards or ATMs.
3. Collaborative Efforts: The NBC has partnered with banks, tourism operators, and immigration authorities to promote the app and ensure accessibility for tourists.
4. User Experience: Tourists can add funds at banks, hotels, or via Visa cards in the future. They can withdraw remaining funds or donate to charity directly through the app.
5. Regional Use: The app’s functionality extends beyond Cambodia, allowing use in neighboring countries like Thailand, Laos, and Vietnam.
6. Concerns and Feedback: Some tour guides and tourism professionals expressed concerns about the app’s ease of use, especially for older tourists, and emphasized the importance of promoting the use of the local currency, the riel.
7. Support and Issue Resolution: A dedicated NBC team is available to address any payment issues that may arise, ensuring smooth transactions for users.

This innovative step by the NBC marks a significant move towards modernizing Cambodia’s payment systems and improving the tourism sector.