Cambodia Investment Review

Visa Study Highlights Cambodia’s Continued Growth In Digital Payments

Visa Study Highlights Cambodia’s Continued Growth In Digital Payments

Cambodia Investment Review

Visa, a world leader in digital payments, has released findings from its latest Visa Consumer Payment Attitudes study, indicating an opportunity for Cambodians to embrace digital payments, as they keep pace with their Southeast Asian neighbors.

The study was prepared by CLEAR M&C Saatchi in Oct-Nov 2023, surveyed 6,550 consumers in Singapore, the Philippines, Malaysia, Indonesia, Thailand, Vietnam, and Cambodia. The study also conducted face-to-face interviews with 500 Cambodian consumers across the country who are working part or full time with a demographic mix that sought to create a representative mix of ages and genders.

The study found that as Cambodia continues its journey in adopting digital payment modes, 23% of Cambodians who were surveyed reported going cashless in 2023. Cambodia leads the region in using internet banking for payments – with 82% of respondents using internet banking most frequently for bill payments, convenience store purchases and food & dining. 72% said they use a banking app, led by Gen Z, for mostly peer-to-peer money transfers and bill payments.

Consumer Notice An Increase In Cashless Acceptance

Consumers have also noticed an increase in cashless acceptance. The study found that 75% of surveyed respondents said they observed more stores accepting mobile wallet payments compared to a year earlier.

Read more: Visa Accelerator Program 2024 Ignites a New Wave of Innovation in Cambodia & Asia-Pacific Startups

“We are accelerating acceptance expansion among small and medium-sized businesses (SMBs) by bolstering merchant partnerships, introducing new acceptance technologies, and supporting digitization of government platforms,” said Ms. Ivana Tranchini, Visa Country Manager for Cambodia. “The convenience and safety of digital payments and platforms can help SMBs acquire more customers and grow their business.”

Visa Consumer Payment Attitudes study launch.

Visa’s data supports this development, as digital payments continue to grow among Cambodian consumers. For instance, VisaNet data shows that payment volume of Visa cards issued in Cambodia across all payment methods, both domestically and cross-border, rose 22% year-on-year in the fourth quarter of 2023, while the number of monthly domestic contactless transactions made on Visa cards increased 16% year-on-year in December 2023.

Raising Awareness About The Benefits Of Digital Payments

Ms. Tranchini added: “A collaborative approach is key as countries navigate digital transformation. We look forward to working with our public and private sector partners to continue raising awareness about the benefits of digital payments. This will help Cambodia keep pace with our regional neighbors. Interoperability is critical in driving the adoption of digital payments and creating seamless payment experiences. At Visa, we are committed to providing secure and convenient digital payment solutions and providing inclusivity in enabling digital payment adoption by facilitating consumers, businesses, and the entire economy to participate in the journey.”

An example of supporting the growth of Cambodia’s payments ecosystem was Visa’s launch of the National Net Settlement Service in Cambodian Riel (NNSS KHR) program in 2021. This enables the settlement of funds in Cambodian Riel through VisaNet Settlement Service. NNSS KHR is a secure and scalable domestic processing solution that combines the Visa global network with local currency settlement, providing operational reliability and reducing clients’ foreign currency risk exposure.

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