E-payments in Cambodia are continuing a strong upward trend with data from the National Bank of Cambodia revealing there were 698.8 million transactions, valued at $199.76 billion in 2021 as more companies utilize e-payment technology.
Sarat Ouk, Head of Payments at the National Bank of Cambodia’s said: “Cambodia’s payment system has grown significantly and is evolving towards digital payments with new infrastructure, services, and payment tools.”
“In 2021, electronic payments increased compared to 2020, with 698.8 million electronic payment transactions amounting to $199.76 billion, accounting for 787% of GDP,” he added.
In the central bank’s annual review, it stated that during the COVID-19 pandemic, e-commerce transactions and electronic payments methods increased significantly.
Electronic payment systems played a key role in facilitating both domestic and international fund transfers and trade payments, as well as in preventing COVID-19 from spreading via direct contact, they added.
Bakong app wins international award
Cambodia Investment Review has previously reported on the Bakong payment application that was named in the ‘Awards for Excellence winners of the 2021 Nikkei Superior Products and Services Awards’ for its innovative technology and impact on the country’s economic and social development.
The mobile application, launched last year, is Cambodia’s first integrated payment system and was designed to allow customers to perform several functions, such as using an e-wallet and making mobile payments, online transactions, and financial applications.
Tomas Pokorny, Secretary-General of Cambodia Finance & Technology Association told Cambodia Investment Review that offline transactions [in person] have declined since early 2021.
“In addition, to an increases in e-payment methods [such as QR codes] there was also an increase in much larger scale online transactions – via various e-commerce, e-ordering, delivery, and other payment portals,” he said.
E-payment and e-commerce companies link
Cambodia’s e-commerce platforms have been linking with e-payment providers to install seamless gateways for customers to use. Most recently, U-Pay and E-GetS signed a memorandum of understanding (MoU) on digital payments partnership and leveraging the use of its ecosystems.
The core objective of this collaboration was to bring businesses and consumers together, promote cashless payments and make the food delivery experience more exciting.
Orders and deliveries can be managed in a single Point Of Sale device which will allow sellers to focus on the quality of foods and speed.
Cambodia Investment Review previously reported that e-commerce platform Smile Shop linked with commercial lender Sathapana Bank to further the platform’s digital payment gateways and pave the way for ‘buy now, pay later’ capabilities.
Cambodia’s e-commerce platforms have identified that they need to work better with local digital logistics infrastructure including both logistics and payment solutions.
The company has also partnered with local microfinance institutions and banks – who already met central bank regulations – to offer e-installment option payments for its products.