The National Bank of Cambodia (NBC) has introduced new notification requirements for businesses issuing single purpose e money through mobile applications or membership cards, giving them 90 days to formally notify the central bank. The move is intended to ensure that businesses operating these payment systems follow Cambodia’s banking and financial regulations while still allowing micro, small and medium sized enterprises (MSMEs) to support digital payment innovation.
The new rules affect businesses such as cafes, restaurants, transportation companies, entertainment centres, gas stations and other establishments that allow customers to load money into an electronic wallet and use the balance to pay only for products or services offered by the business itself. At the same time, the NBC is warning consumers to be careful when opening e wallet accounts with businesses that are not licensed banks, financial institutions or authorised payment service providers.
Which Businesses Are Covered By The New Rules?
According to the NBC, some businesses have been issuing electronic money through mobile applications or membership cards as part of their customer services. These accounts allow customers to deposit money and spend the balance exclusively at the business that issued the wallet.
This type of arrangement is classified as single purpose e money because the funds can only be used to purchase products or services from one physical business. The system can be found in different sectors, including food and beverage, transportation, entertainment and fuel services.
Why Is NBC Requiring Businesses To Notify The Central Bank?
Under Cambodia’s Law on Banking and Financial Institutions 1999, providing payment facilities to customers is considered part of the operations of banking and financial institutions. Such activities generally require authorisation from the NBC.
The NBC also referred to Article 20, Point 1 of the Prakas on the Management of Payment Service Institutions, issued in 2017. The provision prohibits legal entities other than banking and financial institutions and licensed payment service institutions from issuing electronic money.
However, the regulation provides an exception for certain businesses. To support micro, small and medium sized enterprises and encourage innovation, Point 2 allows eligible entities to issue electronic money without obtaining a licence, provided they notify the NBC in writing in advance and meet the required conditions.
What Are The E Wallet Limits?
Businesses using this exception must operate within specific limits set by the central bank. The maximum balance allowed in each e wallet account is 200,000 riel, or approximately $50.
At the same time, the combined balance across all accounts operated by the business must not exceed 800 million riel, equivalent to about $200,000. The electronic money must also be used only to pay for products or services provided by a single physical business, alongside other conditions prescribed by the NBC.
These limits are important for businesses because exceeding them could place their e money activities outside the conditions allowed under the notification based arrangement.
Businesses Have 90 Days To Notify NBC
The NBC said businesses that are not banking and financial institutions or licensed payment service institutions but are already issuing electronic money must formally notify the central bank in writing within 90 days from the date of the announcement.
The requirement gives businesses time to review their existing e wallet systems and ensure they meet the conditions set by the NBC. Businesses that fail to submit the required notification within the specified period could face action under Cambodia’s applicable legal procedures.
“In case of failure to notify within the specified time, the National Bank of Cambodia will take action according to the applicable legal procedures,” the statement said.
What Should E Wallet Users Know?
The new rules are also relevant to consumers who use e wallets provided by businesses. The NBC urged the public to exercise caution when registering for e wallet accounts through mobile applications operated by businesses or companies that are not recognised as banking and financial institutions and do not hold the appropriate licences.
Consumers should understand that these e wallet accounts are not the same as savings accounts at a bank. Businesses operating these accounts are also strictly prohibited from paying interest on the money held in them.
Why Should Customers Be Careful With Their E Wallet Balances?
The NBC advised customers not to keep balances above the prescribed limits. Users should also understand that they are responsible for potential risks associated with opening and using e wallet accounts provided by businesses that fall under these arrangements.
For consumers, the message is straightforward: an e wallet issued by a cafe, restaurant, transport company, entertainment business or other establishment may be useful for making payments within that business, but it should not be treated as a conventional bank account.
What Does This Mean For Businesses And Consumers?
For businesses, the new requirement highlights the importance of checking whether their e money activities comply with NBC regulations. Companies already offering single purpose e money services should determine whether they qualify for the notification based arrangement and complete the required notification within the 90 day period.
For consumers, the announcement provides an important reminder to check who operates an e wallet before depositing money. Understanding whether the provider is licensed, what the wallet can be used for and what balance limits apply can help users avoid unnecessary financial risks.
Conclusion
Cambodia’s latest e wallet notification requirement reflects the NBC’s effort to keep digital payment services within a clear regulatory framework while allowing smaller businesses to continue experimenting with innovative payment solutions. The 90 day notification period gives eligible businesses an opportunity to bring their operations into compliance, while consumers are being reminded that business based e wallets are not savings accounts and should be used with caution.
As digital payments continue to expand across Cambodia, both businesses and consumers will need to pay closer attention to the rules governing electronic money, licensing, account limits and consumer protection.