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Asked: March 10, 2025In:

In recent years, digital payments have rapidly gained popularity around the world, offering a seamless and efficient way to conduct transactions. Among these innovations is Cambodia’s Bakong QR code payment system, a project launched by the National Bank of Cambodia ...Read more

In recent years, digital payments have rapidly gained popularity around the world, offering a seamless and efficient way to conduct transactions. Among these innovations is Cambodia’s Bakong QR code payment system, a project launched by the National Bank of Cambodia (NBC) to create a more modern and accessible payment ecosystem. With the increasing global reliance on digital transactions, many are now wondering whether they can use the Bakong QR code payment system while traveling abroad, particularly in China.

The short answer is yes—thanks to an exciting new development, Cambodians can now use the Bakong QR code payment system in China, making it easier than ever for citizens and tourists to make payments while abroad. This is possible through the partnership between Cambodia’s National Bank and UnionPay International (UPI), which has resulted in the second phase of cross-border QR Code payment transactions.

Bakong QR Code Payment in China
Bakong QR Code Payment in China

Serey announced this during the official launch of ‘Phase 2: Bakong Outward Cross-Border Payment’ in the presence of Ho Wai Man, General Manager of the Bank of China Credit Card (International) Ltd and Larry Wang, CEO and Deputy Chairman of the UnionPay International (UPI) in Phnom Penh, on March 10.

The launch of ‘Phase 2: Bakong Outward Cross-Border Payment’ in collaboration with the UPI follows the successful introduction of the ‘Phase 1: Inward Cross-Border Payment’ launched in December 2023.

“Today’s event marks a significant milestone in our partnership and underscores our commitment to innovating and digitalising financial services, driving sustainable and inclusive growth,” Serey said.

The Launch of Cross-Border QR Code Payments

On a momentous occasion, the National Bank of Cambodia and UnionPay International officially launched the second phase of cross-border QR Code payment transactions. This new phase of development has opened up a host of possibilities for Cambodians traveling or doing business in China and beyond. The second phase of the project was officially launched with a ceremony presided over by Her Excellency Dr. Chea Serey, the Governor of the National Bank of Cambodia, alongside key figures such as Mr. Larry Wang, CEO and Vice Chairman of the Board of Directors of UPI, and Mr. Ho Wai Man, General Manager of Bank of China Credit Card (International) Ltd.

Serey emphasised that with the Bakong App users – later some of the banks will join the initiative – will be able to scan the WeChat QR code in China.

The launch ceremony was not just a symbolic gesture—it marked the beginning of a more connected and digital financial world. With this initiative, the integration of Cambodia’s QR Code payment system with UnionPay’s payment network and WeChat Pay enables Cambodians to make cross-border payments via QR code scanning. This development is a game changer, providing greater convenience for both individuals and businesses by facilitating easy and fast transactions between Cambodia and China.

How the System Works

The system works by connecting the National Bank of Cambodia’s Bakong payment card system with UnionPay’s international payment network. UnionPay is one of the largest and most widely recognized payment networks in China and many other countries. With this connection in place, Cambodians can now make payments in China by simply scanning a QR code through UnionPay’s payment card scanner.

Also read: Can I Use Bakong QR Code Payment in Japan?

Serey continued, “Regarding remittances through the UPI payment platform, we [NBC] are excited about this development, as there are many Chinese workers in Cambodia and Cambodians working in China. This will help them make safe and secure remittances to their families.”

This development is particularly noteworthy because UnionPay, which is widely accepted in China and various other regions, will now allow the integration of Cambodia’s local payment system with a global one. This is a significant step in bringing Cambodia’s financial infrastructure into alignment with international standards, enhancing both the convenience and efficiency of cross-border payments.

Benefits for Cambodians in China

For Cambodians traveling to China, this new payment system offers numerous advantages. First and foremost, it eliminates the need for travelers to carry large amounts of foreign currency, which can be inconvenient and risky. By using the Bakong QR code payment system, users can make purchases at a wide range of businesses across China, just like they would with local Chinese payment methods such as Alipay or WeChat Pay.

Serey said, “This initiative offers opportunities to maximise trade and streamline cross-border payments and remittances. This, in turn, supports the local economy, promotes the use of the Riel currency.”

This new system is especially helpful for tourists, who often face challenges when trying to make payments in foreign countries. In the past, relying on international credit cards or cash could be costly due to exchange rates and transaction fees. However, with Bakong, Cambodian tourists can now make payments in Chinese Yuan (CNY) at a reasonable cost, as the transactions are conducted through a seamless digital platform that bridges the gap between Cambodia’s and China’s financial systems.

Also read: What is the Digital Community of Cambodia? Why You Need to Join?

Moreover, this initiative provides Cambodians with the ability to make cross-border transactions more smoothly. This can be especially valuable for those involved in business or trade, as it reduces the reliance on traditional banking systems and facilitates faster, more cost-effective payments.

Expanding Trade and Tourism

The Bakong QR Code payment system’s expansion into China is not just a win for individual consumers but also a significant step forward in strengthening the economic ties between Cambodia and China. By allowing for easier payment transactions between the two countries, this system can help foster greater trade and tourism. Cambodian businesses looking to expand into the Chinese market can now accept payments more easily, helping them tap into a massive consumer base.

At the same time, the introduction of this payment system provides a boost to tourism, allowing Chinese tourists visiting Cambodia to make payments through the same system. As Cambodia’s tourism industry continues to grow, providing a seamless payment experience for foreign visitors is essential for attracting more tourists and increasing overall tourism revenue.

By facilitating smooth cross-border payments, the initiative also promotes investment opportunities. Investors and businesses engaged in cross-border trade will find this system particularly beneficial, as it simplifies the process of making payments and transferring funds across borders. This development is expected to drive more economic activity between the two countries, contributing to sustainable economic growth and development in both nations.

Strengthening Cambodia’s Financial Landscape

The implementation of Bakong and its integration with UnionPay International represents a significant milestone in Cambodia’s journey towards modernizing its financial system. As one of the first ASEAN nations to introduce a national QR code payment system, Cambodia is positioning itself as a leader in financial innovation in the region. This development is not just about improving payment systems—it’s about creating an inclusive financial environment that benefits both local citizens and international businesses.

Also read: How Many Financial Institutions Operate the Bakong System in Cambodia?

Through this cross-border QR code payment initiative, Cambodia is not only improving the convenience and accessibility of payments for its own citizens but also encouraging the use of digital financial tools that support sustainable economic growth. This is in line with the broader goal of the National Bank of Cambodia to enhance financial inclusion, promote digital financial services, and ensure that the country remains competitive on the global stage.

Looking to the Future

The second phase of the Bakong QR Code payment system is just the beginning. As more countries and regions adopt digital payment systems, the opportunities for Cambodians to use the Bakong system abroad will continue to grow. With ongoing support from financial institutions like UnionPay and innovations in digital payments, Cambodia’s QR code system could soon be integrated into additional international networks, making it even easier for Cambodians to conduct transactions worldwide.

This development signals a bright future for Cambodia’s financial sector and highlights the growing importance of digital payment systems in an increasingly interconnected world. Whether you’re a Cambodian citizen traveling to China for business or leisure, or a Chinese tourist visiting Cambodia, the ability to use the Bakong QR code payment system will undoubtedly make your financial transactions easier and more convenient. As the system evolves and expands, it will continue to shape the future of cross-border payments and financial inclusion in Cambodia and beyond.

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Angkor Times
Angkor TimesExperienced
Asked: March 10, 2025In:

Oversupply Forces Small Malls to Close in Phnom Penh! Phnom Penh’s retail landscape is undergoing a significant transformation as an increasing number of mid-sized malls are closing down. The primary reasons behind these closures are an oversupply of retail spaces, poor ...Read more

Oversupply Forces Small Malls to Close in Phnom Penh!

Phnom Penh’s retail landscape is undergoing a significant transformation as an increasing number of mid-sized malls are closing down. The primary reasons behind these closures are an oversupply of retail spaces, poor structural and commercial designs, and shifting consumer behavior. While large-scale malls with modern facilities continue to attract foot traffic, smaller and less strategically planned malls are struggling to survive.

Small Malls in Phnom Penh Shutting Down
Small Malls in Phnom Penh Shutting Down

The Impact of Oversupply on Small Malls

Over the past decade, Phnom Penh has experienced a retail construction boom. Developers have rushed to build malls to cater to the city’s growing urban population and rising middle class. However, this rapid expansion has led to an oversupply of retail spaces, making it difficult for all malls to sustain a steady flow of customers. As a result, many smaller malls, unable to compete with larger and better-equipped shopping centers, have been forced to shut down.

Propnex Cambodia CEO An Sothida highlighted that oversupply and location are two major challenges for Cambodia’s retail sector. “Some locations are not suitable for building malls because they lack parking and public spaces for parking and recreation,” she explained. The struggle to attract customers has led developers to continuously revamp their malls every five years, aiming to create fresh and engaging experiences for shoppers.

Design and Infrastructure Challenges

Apart from oversupply, design and infrastructure flaws have played a significant role in the failure of smaller malls. Many of these shopping centers lack fundamental facilities such as ample parking, public restrooms, and recreational spaces. Additionally, poor pedestrian planning has made access inconvenient for shoppers, reducing foot traffic even further. Without these essential elements, malls fail to provide a comfortable and enjoyable shopping experience, which is crucial in today’s competitive retail market.

The absence of sufficient parking spaces is a critical issue. Phnom Penh’s traffic congestion is already a challenge, and consumers prefer malls where they can easily park their vehicles. Many smaller malls fail in this aspect, driving customers to larger shopping complexes that offer convenience and accessibility.

Changing Consumer Behavior and Declining Purchasing Power

Another key factor contributing to mall closures is the shift in consumer behavior. With the rise of e-commerce, more people are opting to shop online rather than visit physical stores. Additionally, economic uncertainties and declining purchasing power mean that consumers are becoming more selective about where and how they spend their money. Malls that do not offer unique experiences or high-value products struggle to attract customers in such an environment.

The impact of COVID-19 also accelerated changes in consumer preferences. Many shoppers have developed new habits, including online shopping and home delivery services, reducing the need for frequent mall visits. Malls that failed to adapt to these new trends have faced difficulties in maintaining foot traffic.

The Need for a New Retail Strategy

A veteran real estate agent suggested that developers should rethink their strategies and focus on specialized retail concepts. “When a market has its own uniqueness, customers will go to that market where they can find what they want,” he said. “Having a wide range of products in one market is not necessarily a good thing,” he added. Instead of building generic malls, developers could create niche retail spaces that focus on specific products, such as clothing, electronics, or beauty products. This approach has proven successful in other countries, where specialty malls attract dedicated customer bases.

Another strategy for survival is integrating more entertainment and lifestyle elements into malls. Today’s consumers are not just looking for a place to shop; they want an experience. Malls that offer cinemas, food courts, gaming zones, and co-working spaces are more likely to thrive in a highly competitive market.

The Future of Phnom Penh’s Retail Sector

Despite the closures of some small malls, the overall retail industry in Phnom Penh continues to evolve. Large-scale malls with strong branding, comprehensive facilities, and strategic locations are still drawing significant customer traffic. Meanwhile, developers are beginning to recognize the need for innovation in retail spaces to meet changing consumer demands.

To ensure long-term success, mall developers must focus on proper planning, consumer preferences, and market demand. Building malls without thorough market research can lead to financial losses and eventual closures. Instead, a well-thought-out approach that considers location, infrastructure, and specialization will be key to sustainability in the retail sector.

In conclusion, the closure of small malls in Phnom Penh is a reflection of oversupply, poor design choices, and shifting consumer behavior. To survive in this changing landscape, developers need to embrace new retail concepts, improve infrastructure, and focus on delivering unique shopping experiences. The future of retail in Phnom Penh will depend on adaptability, strategic planning, and the ability to cater to the evolving needs of consumers.

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Angkor Times
Angkor TimesExperienced
Asked: March 10, 2025In: , ,

The Current State of Cambodia’s Microfinance Sector in 2025! As of early 2025, Cambodia’s microfinance sector is undergoing significant reforms to promote responsible lending and enhance consumer protection. The sector, which has played a crucial role in financial inclusion and ...Read more

The Current State of Cambodia’s Microfinance Sector in 2025!

As of early 2025, Cambodia’s microfinance sector is undergoing significant reforms to promote responsible lending and enhance consumer protection. The sector, which has played a crucial role in financial inclusion and poverty reduction, faces challenges such as over-indebtedness and the need for stricter regulatory oversight. In response, the National Bank of Cambodia (NBC) and the United Nations (UN) have taken proactive steps to address these concerns.

Ongoing Reforms and Key Developments

In November 2023, the NBC and the UN launched a multi-stakeholder consultation process to review the rapid expansion of the microfinance sector. This initiative was primarily focused on addressing the growing concerns of excessive debt burdens among borrowers and ensuring that financial institutions adopt responsible lending practices. The consultation process resulted in a structured roadmap for reform, emphasizing sustainability and financial inclusion.

By January 2025, a second high-level dialogue was convened to assess the progress of these reforms. Among the 22 priority actions identified, four have been fully implemented, fifteen are in progress, and three are in the initial stages. These efforts aim to create a more stable and consumer-friendly financial environment. Some of the primary areas of focus include:

  • Regulation and Supervision: Strengthening the supervisory framework to ensure that microfinance institutions (MFIs) comply with responsible lending practices. Stricter guidelines have been introduced to monitor loan disbursement and prevent predatory lending.
  • Borrower Assistance: Implementing measures to educate borrowers on financial products and improve their ability to manage debt responsibly. Financial literacy programs are being expanded to rural areas where access to financial education has traditionally been limited.
  • Technological Advancements: Encouraging the adoption of digital financial services to enhance efficiency and accessibility. Mobile banking and fintech solutions are being leveraged to extend financial services to underserved populations.
  • Informal Lending Regulation: Addressing the risks associated with informal lending practices by strengthening the role of local authorities in financial management. Many borrowers have been vulnerable to unregulated lenders, leading to higher debt risks.
  • Agricultural Risk Insurance: Exploring insurance solutions tailored for communities dependent on agriculture. Given the impact of climate change on farming, there is an increasing need for financial products that safeguard rural livelihoods against unpredictable losses.

Strengthening Financial Inclusion

Beyond regulatory improvements, partnerships within the sector are playing a vital role in ensuring sustainable financial inclusion. The Cambodia Microfinance Association (CMA) and the Cambodia Credit Guarantee Corporation (CGCC) have signed a Memorandum of Understanding (MoU) to bolster support for micro, small, and medium enterprises (MSMEs). This collaboration aims to:

  • Enhance capacity-building programs for small business owners.
  • Expand access to digital financial services, making transactions more convenient and transparent.
  • Strengthen financial literacy initiatives, ensuring that business owners and individuals make informed financial decisions.

The Road Ahead

Despite the challenges, Cambodia’s microfinance sector remains an essential pillar of the country’s financial ecosystem. The ongoing reforms reflect a commitment to balancing financial growth with consumer protection. By fostering a more responsible and inclusive financial environment, Cambodia aims to ensure that microfinance continues to contribute positively to economic development while safeguarding the interests of borrowers.

As regulatory measures take effect and financial institutions align with responsible lending practices, the sector is expected to become more resilient and sustainable. These efforts will not only protect borrowers from excessive debt but also empower them to use financial services as a tool for economic advancement. The success of these reforms will depend on continued collaboration between regulators, financial institutions, and development partners, ensuring that Cambodia’s microfinance sector remains a force for positive economic change.

Conclusion

Cambodia’s microfinance sector is at a crucial turning point in 2025. While the industry has been instrumental in providing financial access to underserved communities, the challenges of over-indebtedness and regulatory gaps have necessitated bold reforms. The initiatives led by the NBC, UN, CMA, and CGCC highlight a collective effort to reshape the sector into a more responsible and consumer-friendly system.

Looking forward, the effectiveness of these reforms will be determined by how well they are implemented and embraced by all stakeholders. Strengthening financial literacy, leveraging technology, and improving supervision will be key to ensuring a robust and sustainable microfinance ecosystem. If these measures succeed, Cambodia will not only protect its borrowers but also establish a stronger foundation for economic growth and financial inclusion in the years to come.

Ultimately, the transformation of Cambodia’s microfinance sector is about striking a balance—ensuring that financial institutions can continue to grow while prioritizing the well-being of the people they serve. With ongoing reforms and collaborative efforts, the sector is on a path to becoming more transparent, ethical, and beneficial for all involved.

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Angkor Times
Angkor TimesExperienced
Asked: March 10, 2025In: , ,

Cambodia has rapidly embraced digital transformation, particularly in its financial sector. One of the most significant milestones in this journey is the introduction of the Bakong System, an advanced payment platform developed by the National Bank of Cambodia (NBC). Launched ...Read more

Cambodia has rapidly embraced digital transformation, particularly in its financial sector. One of the most significant milestones in this journey is the introduction of the Bakong System, an advanced payment platform developed by the National Bank of Cambodia (NBC). Launched in October 2020, Bakong is a blockchain-based interbank payment system that facilitates seamless transactions between different financial institutions, promoting financial inclusion and efficiency.

How Many Financial Institutions Operate the Bakong System in Cambodia?
How Many Financial Institutions Operate the Bakong System in Cambodia? Photo by AI

Unlike traditional banking methods, Bakong integrates banks, microfinance institutions (MFIs), and payment service providers (PSPs) into a single digital platform. It enables users to make real-time transactions, regardless of the financial institution they are registered with. The system is compatible with KHQR Code payments, allowing merchants and consumers to process digital transactions effortlessly across multiple providers.

One of the key objectives of Bakong is to bridge the financial gap by offering secure and accessible digital payment options to both urban and rural populations. Cambodia has seen an impressive rise in mobile banking adoption, thanks to high smartphone penetration and improved internet access. The Bakong system, in particular, has significantly contributed to reducing reliance on cash transactions, enhancing transparency, and lowering operational costs for financial institutions and businesses alike.

Beyond domestic transactions, the system also supports cross-border payments, particularly with countries like Thailand, Laos, Vietnam, Malaysia, and India, fostering stronger regional financial integration. Given the increasing popularity of cashless payments, Bakong is expected to play an even more pivotal role in Cambodia’s digital financial landscape in the years to come.

How Many Financial Institutions Operate the Bakong System in Cambodia?

According to the 2024 annual report from the National Bank of Cambodia, as of 2024, a total of 69 financial institutions were part of the Bakong system. Out of these, 60 institutions had already officially launched their services, while 9 others were in the process of implementing the system.

The adoption rate of Bakong has been steadily increasing, reflecting a growing trust in digital financial transactions. The same report highlights that in 2024, the number of registered users of the Bakong system reached 642.5 thousand accounts, marking a 7% increase compared to 2023.

Additionally, banking institutions and payment service providers have expanded their services under Bakong. The number of customers with bank accounts or e-wallets who can transact via the Bakong system (also referred to as “Customer Reached”) is now estimated at 30 million accounts—approximately 1.69 times the total population of Cambodia.

Growth of KHQR Code Payments in Cambodia

Another important feature of the Bakong system is its KHQR Code payment function, which simplifies digital transactions. As of the end of 2024, financial institutions had successfully registered 4.5 million merchants to accept payments via KHQR Code, representing a 36.4% increase from the previous year. This surge highlights the rising preference for digital payment solutions among Cambodian businesses and consumers.

The Impact of the Bakong System on Cambodia’s Economy

The widespread adoption of the Bakong system has had numerous positive impacts on both the Cambodian public and the government. Dr. Hong Vannak, an economic analyst at the Royal Academy of Cambodia, has emphasized the growing popularity of digital payments among various demographics, especially in urban areas with reliable internet access.

Benefits for Consumers:

  1. Convenience – Users can make payments without carrying cash, reducing risks associated with theft or loss.
  2. Speed – Transactions are completed instantly, improving efficiency.
  3. Security – Eliminates concerns over counterfeit money.
  4. Health Safety – Reduces the risk of disease transmission through cash handling.

Benefits for the Government:

  1. Lower Operational Costs – Reduces the need for printing physical banknotes.
  2. Enhanced Financial Transparency – Facilitates better monitoring of money flows.
  3. Support for Financial Inclusion – Encourages more people, including those in rural areas, to engage in formal financial activities.

Conclusion

The Bakong System has revolutionized Cambodia’s digital payment landscape, fostering financial inclusion and economic efficiency. With 69 financial institutions participating, and over 30 million potential users, the platform continues to grow as a key driver of Cambodia’s cashless economy. Its KHQR Code feature further enhances accessibility and ease of transactions, making digital payments a mainstream option.

As Cambodia continues to integrate innovative financial technologies, the Bakong system is expected to play a central role in shaping the country’s economic future, reinforcing digital payments as an essential component of everyday transactions.

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Angkor Times
Angkor TimesExperienced
Asked: March 10, 2025In: , ,

Google has introduced a new feature for Google Business Profiles that allows businesses to generate QR codes linking directly to their review pages. This update simplifies the process of collecting customer feedback and makes it easier for businesses to enhance ...Read more

Google has introduced a new feature for Google Business Profiles that allows businesses to generate QR codes linking directly to their review pages. This update simplifies the process of collecting customer feedback and makes it easier for businesses to enhance their online presence.

Google Business Profile Update-QR Codes for Review Pages
Google Business Profile Update-QR Codes for Review Pages

How the QR Code Feature Works

With this new update, businesses can now generate a unique QR code that directs customers straight to their Google review page. This feature, accessible via the Google Business Profile dashboard on desktop, eliminates the hassle of customers having to search for a business manually before leaving a review.

Google announced the update today on X:

You can now create easy-to-scan QR codes that take customers directly to your GBP, encouraging them to leave more reviews. On your desktop, go to your Business Profile and click on “ask for reviews”. Follow the instructions to generate a link or a QR code. Voila!

https://x.com/GoogleMyBiz/status/1896974056391631161

How to Generate a QR Code for Your Business

Creating a QR code for your business’s review page is simple. Follow these steps:

  1. Log in to your Google Business Profile dashboard on desktop.
  2. Click on the “Ask for Reviews” option.
  3. Follow the instructions to generate a direct link or a QR code.
  4. Share your QR code via Email, WhatsApp, Facebook, printed receipts, business cards, or in-store signage.

Why This Matters for Businesses

This update presents a new opportunity for businesses to increase their review count with minimal effort. QR codes are a convenient way to encourage customers to leave reviews by eliminating friction in the process. Businesses can now display QR codes at physical locations, include them in post-purchase emails, or attach them to receipts.

Benefits of This Update:

  • Higher Review Volume: By making the review process seamless, more customers will be encouraged to leave feedback.
  • Better Local Visibility: While reviews don’t directly impact search rankings, they do influence Google’s local pack, improving your business’s online presence.
  • Enhanced Customer Engagement: With easier access to review pages, businesses can build stronger relationships with their customers and improve service quality.

Customers Are More Willing to Write Reviews

A recent study by BrightLocal analyzed 15 years of data and found that customers are becoming more aware of the importance of reviews. Their willingness to leave reviews is increasing, provided they are given a strong reason and the right timing.

The study states:

“… despite the challenges of maintaining a consistent stream of new reviews, consumers are overwhelmingly willing to write one. It’s all about giving them a strong reason to do so (AKA a memorable experience) and catching them at the right time.”

However, the study also highlights that while customers are more inclined to leave reviews, they are also becoming more skeptical of overall review scores. Many consumers now consult alternative sources such as TikTok and YouTube for additional insights before making decisions.

Leveraging the QR Code Feature for Maximum Impact

To fully benefit from this feature, businesses should integrate QR codes strategically:

  • In-store: Place QR codes on posters, tables, or checkout counters to encourage on-the-spot reviews.
  • Post-purchase receipts: Adding a QR code to printed or digital receipts increases the likelihood of immediate customer feedback.
  • Social media & email campaigns: Sending QR codes via email or sharing them on social media platforms can help reach a broader audience.

Final Thoughts

Google’s new QR code feature for Business Profiles is a game-changer for businesses looking to boost their online credibility. By making it effortless for customers to leave reviews, businesses can improve their local SEO presence and enhance customer trust. However, businesses should also ensure their presence extends beyond Google reviews by engaging customers on alternative platforms like TikTok and YouTube.

Now is the perfect time to implement QR codes in your business strategy and take advantage of this streamlined approach to gathering customer feedback!

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