The National Bank of Cambodia (NBC) and India’s NPCI International Payments Limited (NIPL) are moving forward with plans to launch a cross-border QR code payment system, aiming to facilitate seamless financial transactions between the two nations. This initiative was discussed in a recent meeting in Mumbai, India, where NBC Governor Chea Serey met with representatives from NIPL.
The primary goal of this collaboration is to enhance the efficiency of payment and money transfer operations, with a strong emphasis on promoting the use of national currencies in transactions between Cambodia and India. This effort is part of a broader strategy to strengthen the financial systems of both countries through technological advancements in payment solutions.
In April of the previous year, NBC and NIPL solidified their partnership by signing a Memorandum of Understanding (MoU). This agreement laid the groundwork for cooperation in cross-border payments and remittances, aiming to create a framework for digital connectivity and interoperability between Cambodia and India.
The MoU is anticipated to bring significant advantages to citizens of both countries, offering a secure and convenient way to conduct cross-border payments and remittances at reasonable costs. Moreover, this digital payment connectivity is expected to mark a significant milestone in bolstering economic and financial ties, potentially boosting economic growth, tourism, and trade between the two nations.
Cambodia’s introduction of the KHQR, a universal QR code system for retail payments, simplifies transactions by allowing payments from any mobile application, including the Bakong app. Launched in 2022, the KHQR code payment service is part of NBC’s initiative to promote mobile retail payments within the country.
NBC has been actively engaging in bilateral cooperation with regional central banks and other relevant partners to develop a reliable, efficient, and cost-effective cross-border payment system. Cambodia has already established official cross-border payment and money transfer collaborations with Thailand, Laos, Vietnam, and UnionPay International.
Beyond India, NBC is expanding its cross-border payment networks, including the Bakong blockchain-based payment system, to other partners and regional countries such as Japan, Singapore, Fiji, Solomon Islands, and Rwanda. This network aims to facilitate cross-border economic activities through the use of local currencies, fostering greater economic integration and cooperation.
Source: Khmer Times
