South Korean visitors to Cambodia can now make digital payments by scanning QR codes, thanks to a new cross-border payment agreement between the National Bank of Cambodia (NBC) and Jeonbuk Bank.
In an era where digital payments are swiftly replacing cash transactions, the world is becoming increasingly connected through technology. One significant stride in this direction is the recent cross-border payment agreement between the National Bank of Cambodia (NBC) and South Korea’s Jeonbuk Bank. This partnership opens up new possibilities for South Korean tourists visiting Cambodia, enabling them to make digital payments using QR codes. As part of this initiative, Cambodia’s digital payment landscape is rapidly evolving, with the Bakong app at the forefront. This article delves into the implications of this agreement, the history and development of the Bakong app, and how it enhances convenience for both tourists and residents alike.
The Cross-Border Payment Agreement: A New Era of Convenience
On August 29, 2024, a groundbreaking cross-border payment agreement was signed between the NBC and Jeonbuk Bank, marking a significant milestone in the financial relationship between Cambodia and South Korea. This agreement allows Korean tourists to make payments in Cambodia using digital QR codes, particularly through the Jeonbuk Bank mobile application. The convenience offered by this system is expected to boost tourism, trade, and overall financial inclusion in both countries.
Chea Serey, the Governor of NBC, highlighted the potential of this collaboration to elevate financial cooperation between Cambodia and South Korea. By leveraging technology, the initiative aims to benefit citizens and visitors of both nations. The introduction of cross-border QR code payments is not only a testament to Cambodia’s commitment to advancing financial digitalization but also a significant step towards promoting the use of the Cambodian riel (KHR) within the country.
Bakong App: A Revolutionary Digital Payment Platform
At the heart of Cambodia’s digital payment revolution is the Bakong app, a mobile payment platform launched by the NBC. Named after the ancient Bakong temple, one of the oldest temples in Cambodia, the app is a symbol of the country’s rich cultural heritage and its modern aspirations.
The Genesis of Bakong
The development of the Bakong app began as a response to the growing need for a unified and inclusive digital payment system in Cambodia. Launched in October 2020, Bakong was envisioned as a central component of Cambodia’s financial infrastructure, designed to facilitate real-time payments and promote financial inclusion. Unlike traditional banking systems, Bakong operates on a blockchain-based platform, making it more secure, transparent, and efficient.
One of the primary goals of Bakong was to create a cashless society by providing a digital wallet that could be easily accessed by all Cambodians, regardless of their socio-economic status. The app allows users to make payments, transfer money, and even store their funds digitally, thereby reducing the reliance on cash transactions. Over the years, Bakong has evolved into a comprehensive payment solution that integrates various financial services under one platform.
Development and Expansion
Since its inception, Bakong has seen significant growth and adoption across Cambodia. As of 2024, the app has garnered over 8 million users, with a substantial portion of the population relying on it for their daily transactions. The NBC has continuously worked on expanding Bakong’s capabilities, integrating it with other financial institutions, and forging partnerships with neighboring countries to enable cross-border payments.
One of the key developments in Bakong’s journey has been its integration with international payment systems. Cambodia has successfully launched cross-border QR payment projects with Thailand, Vietnam, Laos, and China. These partnerships have allowed Cambodian residents to use their local digital wallets while traveling in these countries, further enhancing the convenience of the Bakong app.
Bakong Tourist App: Enhancing the Experience for International Visitors
Recognizing the importance of tourism to Cambodia’s economy, the NBC introduced the Bakong Tourist app, a tailored version of the original Bakong platform, designed specifically for international visitors. This app simplifies the payment process for tourists, allowing them to download the app, register, and top up their accounts through Bakong’s business partners.
The Bakong Tourist app is particularly beneficial for Korean tourists, who can now use the Jeonbuk Bank mobile app to make payments in Cambodia via QR codes. This seamless integration ensures that tourists can enjoy a hassle-free payment experience during their stay, without the need to carry large amounts of cash or worry about currency exchange rates.
The Impact on Tourism and Financial Inclusion
The introduction of cross-border QR code payments and the Bakong Tourist app is expected to have a profound impact on Cambodia’s tourism industry. South Korea has long been one of the top sources of tourists to Cambodia, with visitors attracted to the Kingdom’s rich cultural heritage, beautiful landscapes, and historical sites such as Angkor Wat. The ability to make digital payments effortlessly will likely encourage more South Korean tourists to visit, boosting the local economy.
Moreover, the promotion of digital payments aligns with Cambodia’s broader goal of financial inclusion. By making digital payment options accessible to everyone, including tourists, Cambodia is paving the way for a more inclusive financial system. This move not only benefits the tourism industry but also contributes to the overall economic stability of the country.
A Step Forward in Cambodia-South Korea Financial Cooperation
The collaboration between NBC and Jeonbuk Bank is more than just a financial agreement; it represents a deepening of economic ties between Cambodia and South Korea. By facilitating cross-border digital payments, the two countries are setting the stage for increased trade, investment, and tourism. The successful implementation of this project could serve as a model for other nations looking to enhance their financial cooperation through technology.
Looking Ahead: Future Prospects
As Cambodia continues to develop its digital economy, the future looks promising for the Bakong app and its users. The NBC has already expressed its intentions to expand cross-border payment projects to other countries, further integrating Cambodia into the global digital economy. For Cambodian residents, this means greater convenience when traveling abroad, while for tourists, it means a more seamless and enjoyable experience when visiting the Kingdom.
The potential for further innovation in the digital payment space is immense. As more countries adopt similar systems, we could see the emergence of a truly global digital payment network, where transactions are made effortlessly across borders, without the need for traditional banking intermediaries.
Join the Conversation
The introduction of cross-border QR payments between South Korea and Cambodia, facilitated by the Bakong app and Jeonbuk Bank, marks a significant milestone in the digital transformation of Cambodia’s financial landscape. As we look to the future, the question arises: How will this innovation shape the tourism industry and the broader economy in the years to come?
We invite you to share your thoughts and experiences. Have you used the Bakong app or other digital payment platforms while traveling? How do you think this new cross-border payment system will impact tourism in Cambodia? Join the conversation in the comments below and let us know your views!
