Interview: Rise in digital payments driving force for e-commerce growth in Cambodia: CEO

PHNOM PENH, July 12 (Xinhua) -- The sharp rise in digital payments is a driving force for the development of e-commerce in Cambodia, Jack Lee, chief executive officer and founder of online market Smile Shop in Cambodia, said on Monday.

Cambodia recorded a total of 13.6 million mobile payment users in 2021, up 42 percent from 9.56 million in 2020, the National Bank of Cambodia (NBC) said, adding that there are 69 financial institutions providing mobile payment services in the kingdom.

The Southeast Asian nation reported that the market value of e-commerce increased to 970 million U.S. dollars last year, up 19 percent from 813 million dollars a year earlier.

"Fantastically, digital payments have been rapidly gaining ground in Cambodia, especially when the NBC launched the Bakong digital payment system, which has integrated more than 35 banks and payment service providers (PSP)," Lee told Xinhua.

The NBC put into use the Bakong system, the kingdom's only all-in-one mobile payment and banking app, in October 2020 and the KHQR code payment service last week.

KHQR is a universal quick response (QR) code system created for retail payments in the country, the NBC said, adding that it only requires a single QR for receiving payment from any mobile apps including Bakong app.

Currently, 29 banking and financial institutions successfully launched a trial run for the KHQR code payment service for goods with roughly 230,000 merchant stores across the country.

"The KHQR brings a lot of benefit to consumers, merchants, banks, and PSPs," Lee said. "Especially, the Bakong system uses blockchain technology, which is very advanced technology, and is the future of fintech."

Sharing his view on opportunities for China-Cambodia cooperation and investment in the field of digital payment, Lee said there is a possibility that the Bakong system can cooperate with China's payment giants like AliPay, WeChat and UnionPay.

"That means, in the future, Cambodian customers can pay in China via Bakong system without downloading Chinese apps, and Chinese customers can pay via Chinese payment apps without downloading the Bakong system in Cambodia," he said.

"As the Chinese government is promoting digital RMB, I think this is also a good opportunity for both countries to cooperate in digital RMB," he added.

Cambodia currently has approximately 17.7 million Internet subscribers, exceeding the kingdom's 16-million population, according to the Telecommunication Regulator of Cambodia.

Most of the users have online access via smartphones.