Credit cards in Cambodia have grown 20 percent in 2023, showing that customers have become more savvy in using new financial instruments.
The number of credit cards has risen 20 percent to 223,749 in 2023 from 185,360 in 2022. But as a percentage of total credit in the system, credit cards still form a small part of Cambodia’s banking system.
A 2023 survey by card issue Visa showed that 35 percent of Cambodians use either a debit or credit card. “Even though usage of cash is high in Cambodia, credit and debit cards for payment is growing in popularity – as 35 percent of those surveyed use them. Interest in contactless cards is also growing,” said Visa in its report.
In 2013, credit cards were 0.2 percent of total credits in the banking system; that number 10 years later has only grown to 0.3 percent of the total loans. Total loans in the system were 221.2 trillion riels ($54.2 billion) in 2023, compared to 30 trillion riels ($7.2 billion) in 2013.
Cambodia has come a long way in the last two decades. In its 2005 report NBC had first mooted the idea of creating a regulatory framework for banks to undertake credit card services. In December 2006, Cambodia had only 5,279 credit cards issued and in circulation in the country. With the majority issued by Canadia Bank Plc, followed by Singapore Banking Corp, Union Commercia Bank Plc and Cambodia Mekong Bank Public Ltd.
In 2023, of 223,749 credit cards issued. The majority (100,538 cards) were issued by AEON Specialized Bank (Cambodia) Plc. This was followed by ACLEDA Bank (31,953), Union Commercial Bank Plc (24,207), Cathay United Bank (Cambodia) Corp Ltd (11,352), Cambodia Post Bank (8,779) and Cambodia Public Bank (8,573) — being the top issuers of credit cards in the Kingdom.
Other players in the credit card market, include Sathapana Bank Plc, Advanced Bank of Asia Ltd, KB Daehan Specialized Bank Plc, CIMB Bank Plc, ICBC Limited Phnom Penh Branch, J Trust Royal Bank Plc, Maybank (Cambodia) Plc, Phnom Penh Commercial Bank Plc, Prince Bank Plc, Saigon Thuong Tin Bank (Cambodia) Plc), SBI Ly Hour Bank Plc, and Vattanac Bank.
The NBC has said that the promotion of credit cards is in line with its need to build a digital economy and promote innovations in payment services to modernise and make the payment service more effective. NBC said, “Modernisation also makes the payment system more convenient for the public and helps boost the digital payment, including the use of debit and credit cards, remittance and also electronic payments.”
But then credit cards are still only a fraction of Cambodia’s debit card market. The total card market in Cambodia stood at 5.4 million cards issued. Of which debit cards form about 96 percent of the market at 5.2 million cards issued and credit cards 4 percent.
Visa, said in its 2023 report, “Visa Consumer Payment Attitudes” Report said that “Credit cards can offer a better value proposition for consumers in terms of flexibility of repayment, building a positive credit history and digital transparency.”
“As consumers increasingly seek the convenience and security of digital payment, businesses that can provide cashless options are often rewarded with larger, more loyal customer bases. We are excited to see Cambodians embracing digital payments as accessing formal financial services is key to bolstering financial inclusion and Cambodia’s economic development,” said Ivana Tranchini, Country Manager, Cambodia, Visa, in the report. “Unlocking modern forms of credit in the evolving digital credit landscape lowers the barrier to entry for financial services and brings more Cambodians into the formal financial sector, encouraging safe and responsible payment transactions,” the report added.
