National Bank of Cambodia Collaborates with Ant International for Cross-Border Mobile Payments

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The National Bank of Cambodia has formalized a strategic partnership by signing a Memorandum of Understanding (MoU) with Ant International, a prominent player in the financial technology sector. This momentous agreement, presided over by Chea Serey, the Governor of the National Bank of Cambodia, and Douglas Feagin, Senior Vice-President of Ant Group and Head of Alipay+, was executed at the prestigious Singapore Fintech Festival.

The primary objective of this MoU is to foster the growth of efficient and secure cross-border mobile payments, both inbound and outbound. This will be achieved through the utilization of QR code technology, specifically the KHQR, connecting Bakong’s extensive network with Alipay+’s payment partners and global merchants. Under this innovative partnership, users of Alipay+ payment partners gain the seamless ability to leverage their domestic e-wallets for transactions at KHQR merchants across Cambodia. These merchants, in turn, must be connected to a Khmer Riel bank account. This symbiotic relationship not only enhances user convenience but also positions local businesses to capitalize on the burgeoning tourism industry.

Furthermore, individuals using Bakong, possessing full Know Your Customer (KYC) compliance, and holding Khmer Riel bank accounts, are empowered to use local wallets and apps endorsed by the National Bank of Cambodia at Alipay+’s global network of merchants. This initiative serves to bolster the use of the local currency on an international scale.

Chea Serey remarked, “This MoU signifies a significant milestone in the realm of cross-border payments. With Cambodia emerging as a sought-after destination for Chinese and international tourists, the advent of cross-border QR payments in a digital format brings immense advantages in terms of convenience and efficiency. This simplicity in payment transactions not only benefits consumers but also propels revenue growth for merchants, thereby stimulating economic activities. I am confident that this collaboration with Alipay+ will prove mutually beneficial, and I extend my best wishes for the continued success of all stakeholders as we embark on this journey of cooperation and achievement.”

KHQR, introduced by the National Bank of Cambodia in July 2022 and administered by Bakong, was designed to facilitate retail payments in Cambodia and cross-border transactions within the ASEAN region. Its streamlined process involves a single QR code for receiving payments through any mobile banking app of Bakong members, including the Bakong app. This simplicity enhances the payment experience for both customers and merchants operating in Cambodia.

Highlighting the significance of tourism as one of Cambodia’s economic pillars, local merchants are urged to actively embrace international visitors. This includes adopting mobile payment solutions that have become commonplace for day-to-day transactions. The Ministry of Tourism of Cambodia reports a substantial increase in international tourist visits, with 3.92 million recorded in the first nine months of 2023, representing a remarkable 211% surge compared to the same period in the previous year.

Douglas Feagin, expressing gratitude to the National Bank of Cambodia for their collaboration, stated, “We believe that this partnership will bring added convenience to tourists who prefer to ‘pay like a local,’ utilizing their familiar payment methods wherever they go. More importantly, it will simplify shopping experiences at local businesses, especially for micro-merchants, thereby providing them with greater opportunities and contributing to the overall growth of the tourism ecosystem in Cambodia.”

Alipay+ stands out as a comprehensive suite of global cross-border payments and marketing solutions managed by Ant International. Operating in 57 markets worldwide, Alipay+ enables digital payment acceptance for e-wallets, bank apps, and buy-now-pay-later apps at 88 million merchants within its ecosystem. Widely accepted in popular travel destinations such as the Chinese mainland, Singapore, Malaysia, Thailand, Japan, and South Korea, Alipay+ continues to play a pivotal role in shaping the landscape of global financial transactions.