E-Payments on the rise in Cambodia - Bakong CDBC leading the way in Asia
By
B2B Cambodia
on
The National Bank of Cambodia (NBC) Financial Stability Report 2021 has highlighted the growth of E-payment transactions in Cambodia, with cashless payment adoption spurred on by the global pandemic.
According to the NBC report, e-payment transactions were worth 415.5 trillion riel (USD $102 billion) in 2021 in the Kingdom, which represents a 34.5 per cent rise from 2020.
- The total value of transactions using e-wallet accounts in 2021 grew by 17.3 % to KHR 200 trillion, which was completed via 343.8 million transactions.
- Internet banking doubled in 2021 to KHR 90.1 trillion (4.4 million transactions).
- Mobile banking increased by 28.6% in 2021, reaching KHR 28.9 trillion (254.1 million transactions).
- Young population
- High mobile phone use and penetration
- Supportive regulatory framework
- Promotion of financial inclusion
You can read more in our article published on the Key Takeaways from the NBC Financial Stability Report 2021
Central bank digital currencies (CBDCs) - Cambodia leading the way
Nikkei Asia reported in June 2022 that the Philippines and Vietnam will study central bank digital currencies (CBDCs) as Chinese payment apps such as Alipay and WeChat Pay penetrate Southeast Asian markets. In 2021, Laos also signed a memorandum of understanding with the Japan International Cooperation Agency for an ongoing CBDC feasibility study with Soramitsu. The report indicated that both Vietnam and the Philippines will explore CBDCs with Tokyo-based startup Soramitsu, the same firm that helped NBC develop Bakong, recognised as one of the world’s first central bank digital currencies (CBDC). By the start of 2022, Bakong had reached 7.9 million people. Image Credit - National Bank of Cambodia (NBC) Financial Stability Report 2021 Cambodia Microfinance Association (CMA) spokesman Kaing Tongngy added that the NBC-backed Bakong blockchain-based payment system has made inter-institutional and customer transactions easier and scrapped a variety of service charges reported the PP Post. Bakong is linked to 20 major financial institutions in the Kingdom and has been testing international remittance and cross-border payments. According to a report by JPMorgan Chase and New York-based consultancy Oliver Wyman, corporations worldwide could save as much as USD $100 billion a year on cross-border transaction costs under a full-scale multinational network of CBDCs.Read more on how Cambodia’s Digital Startup and Fintech Space Keeps Growing