Cambodia saw solid growth in digital payment last year

Cambodia saw solid growth in digital payment last year

The National Bank of Cambodia recorded a

remarkable growth in digital payments in 2023, reflecting that more people shifted from cash-based transactions to digital payments.

The number of registered e-wallet accounts increased to 19.7 million and the total number of transactions jumped to 601.3 million, a year-on-year increase of 28.7 percent, according to an NBC report issued on Tuesday.

The transaction amounts rose by 18 percent to $75.8 billion, approximately 2.4 times the country’s gross domestic product (GDP), read the report.

The report said 33 payment service institutions (PSIs) have been licensed and two banking and financial institutions (BFIs have been authorized to operate payment businesses by the end of 2023.

Observing the payment system has remarkably grown, contributing importantly to developing the digital economy in line with the government’s policy, NBC has continued the development and modernization of the payment system.

“The digital payment service has contributed vitally in promoting financial inclusion as new creative products and services have been put into use to facilitate and provide safety to users,” read the report.

In the context of the progress of technology, the National Bank of Cambodia has grabbed the opportunity to develop a payment system, enabling payment transactions easier, safer, and faster, particularly solving obstacles in inter-bank payment transactions, said NBC Governor Chea Serey.

“Efficiency of the payment transaction system has actively contributed to boosting trading of goods and services, financial inclusion, and promoting Khmer Riel uses, which support the target of the government’s digital socio-economic development,” Serey said.

The report also stated the number of transactions via the Bakong payment system increased year on year by 5 times to 200.93 million transactions, NBC’s report said, 68.79 million transactions were made in Khmer riel and 132.14 in US dollar.

The transaction amount in Khmer Riel was 81.05 trillion riel and in US dollars was $53.76 billion, which increased by 3.4 times and 2.4 times, respectively compared to the same period last year, the report added.

Developed by NBC in partnership with Japanese tech firm Soramitsu, Bakong allows Cambodians to transfer and receive digital funds using their smartphones without traditional bank accounts.

Cambodia’s central bank plans to link its mobile payment app Bakong with China and India this year in a bid to promote cross-border economic activities using local currencies. From: khmertimeskh

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