Cambodia is revolutionizing its tourism sector through the integration of blockchain-based central bank digital currency (CBDC) payments, seeking to diversify and modernize payment options for tourists. As a key component of Cambodia’s broader economic strategy, tourism stands as one of the four main pillars of the nation’s economy.
Mobile Payments in Cambodia, Bakong
The initial three quarters of 2023 have witnessed a substantial surge in international tourist arrivals in Cambodia, nearly quadrupling compared to the preceding year, according to the country’s tourism sector. This upswing underscores the necessity of refining payment systems for local merchants, particularly in the realm of mobile payments, to cater to the needs of an increasingly globalized audience.
Playing a pivotal role in steering these digital currency transformations is the National Bank of Cambodia (NBC). In a pioneering move, the central bank has empowered tourists to utilize their e-wallets linked to Khmer Riel bank accounts for seamless payments at any KHQR merchant across Cambodia.
The KHQR system, inaugurated by the NBC in mid-2022, serves both domestic retail transactions and cross-border dealings within ASEAN countries. Operating through a unified QR code compatible with various mobile banking apps, KHQR is facilitated by Bakong.
Furthermore, users of Bakong CBDC meeting full Know Your Customer (KYC) criteria, alongside Khmer Riel bank account holders, can now conduct transactions at Alipay+ global merchant locations using local wallets and apps endorsed by the NBC. This strategic move is anticipated to promote the utilization of the local currency.
Dr. Chea Serey, Governor of the NBC, emphasized the initiative’s impact on merchants, stating, “This simplicity of making payments provides merchants with a boost in revenue, helping to stimulate economic activity.”
Douglas Feagin, Senior Vice President of Ant Group and Head of Alipay+, Ant International, acknowledged the significance of the partnership, noting, “This partnership will offer added convenience to tourists, allowing them to use familiar payment methods. It will also enable easier shopping at local businesses, especially for micro-merchants.”
This transformation in Cambodia’s payment infrastructure not only aims to enrich the experience for international tourists but also supports local businesses in adapting to the dynamics of the evolving digital economy.