Visa, a global leader in digital payments, has recently unveiled key findings from its Visa Consumer Payment Attitudes study, shedding light on the immense potential for Cambodians to embrace digital payments and keep pace with their Southeast Asian counterparts.
As Cambodia makes steady progress in adopting digital payment solutions, a significant 23% of surveyed Cambodians reported transitioning to cashless transactions in 2023. The nation stands at the forefront of the region when it comes to utilizing internet banking, with an impressive 82% of respondents using it for various purposes such as bill payments, convenience store purchases, and dining expenses. Furthermore, 72% of Cambodians stated their frequent usage of banking apps, predominantly led by the Generation Z demographic, for streamlined peer-to-peer transfers and bill settlements.
Interestingly, consumers have started noticing a surge in the acceptance of cashless payments. About 75% of those surveyed acknowledged observing an increase in stores that now embrace mobile wallet payments, compared to the previous year.
Ms. Ivana Tranchini, Visa Country Manager for Cambodia, emphasized the company’s commitment to accelerating acceptance expansion, particularly among small and medium-sized businesses (SMBs). Visa aims to achieve this through fostering partnerships with merchants, introducing new acceptance technologies, and supporting the digitization of government platforms. The convenience and safety offered by digital payment methods hold significant potential in aiding SMBs to attract more customers and foster business growth.
Visa’s own data reaffirms this trend, underscoring the steady rise of digital payments among Cambodian consumers. For instance, VisaNet data reveals a noteworthy 22% year-on-year increase in payment volume for Visa cards issued in Cambodia, encompassing both domestic and cross-border transactions, during the fourth quarter of 2023. Furthermore, the number of monthly domestic contactless transactions made using Visa cards experienced a remarkable 16% year-on-year growth in December 2023.
Ms. Tranchini emphasized the importance of a collaborative approach as countries navigate the realm of digital transformation. Visa eagerly looks forward to working with public and private sector partners to raise awareness about the manifold benefits of digital payments, enabling Cambodia to keep up with its regional neighbors. The establishment of interoperability is crucial in driving the widespread adoption of digital payments and creating seamless payment experiences. Visa remains steadfast in its dedication to providing secure and convenient digital payment solutions that foster inclusivity, enabling consumers, businesses, and the overall economy to actively engage in this transformative journey.
A notable example of Visa’s efforts in supporting Cambodia’s payments ecosystem is the introduction of the National Net Settlement Service in Cambodian Riel (NNSS KHR) program in 2021. This innovative initiative enables the settlement of funds in Cambodian Riel through VisaNet Settlement Service, offering a secure and scalable domestic processing solution. This combination of Visa’s global network with local currency settlement ensures operational reliability for clients while minimizing foreign currency risks.
As Cambodia continues to tread the path of digital advancement, Visa’s study reinforces the immense growth potential for digital payments in the country. With ongoing efforts to enhance acceptance, educate the public, and foster partnerships, Visa is poised to play a pivotal role in shaping Cambodia’s digital payments landscape and driving its integration into the global digital economy.
Source: Khmer Times
