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.
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:
- Convenience – Users can make payments without carrying cash, reducing risks associated with theft or loss.
- Speed – Transactions are completed instantly, improving efficiency.
- Security – Eliminates concerns over counterfeit money.
- Health Safety – Reduces the risk of disease transmission through cash handling.
Benefits for the Government:
- Lower Operational Costs – Reduces the need for printing physical banknotes.
- Enhanced Financial Transparency – Facilitates better monitoring of money flows.
- 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.