The National bank of Cambodia has reported large increases in the use of its Bakong digital payment system in 2024, with over 600 million transactions taking place.

Of them, over 299 million (up 334%) were conducted in riel and more than 308 million in US dollars (up 133%).

Approximately 183.74 trillion riel (almost $46 billion) was transferred, an increase of 127%, while $104.81 billion (up 95%) in US dollars was transferred.

The NBC noted that the total monetary volume represented 330% of the Kingdom’s GDP.

The use of riel for payments through the Bakong system has gradually increased since it was introduced in October 2020.

“This has expanded the possibilities for conducting transactions with greater ease and on a larger scale for the public. Moreover, the immediate payment feature of the Bakong system has helped improve efficiency and facilitate government payment processes, such as tax collection and other public services,” said the report.

“In this sense, the banking system is not just a digital public infrastructure, but also an important payment system that promotes and facilitates participation in economic and business activities, aiming to support the sustainable economic growth of Cambodia,” it added.

NBC governor Chea Serey was also quoted in the report.

She explained that the modernisation of the payment system has improved payment efficiency in both urban and rural areas, driving domestic economic activities and contributing to reducing development disparities, in line with Cambodia’s Digital Government Policy for 2022-2035.

“The NBC has continued to connect the payment system with neighbouring countries and international payment network companies to support the increase of cross-border payment transactions, aimed at supporting the tourism and trade sectors,” she said.

“Furthermore, the Bakong System for Tourists was implemented to facilitate payment for tourists and reduce the use of paper money, which had previously posed some challenges. These connections will contribute to the use of the national currency, increase options for international payment methods and reduce transaction costs, both regionally and internationally,” she added.

The report noted that as of 2024, the Bakong system has a total of 69 members, with 60 institutions having officially implemented the system and 9 others in the process.

In 2024, 642,500 account holders registered to use the system, representing a 7% increase compared to 2023.

At the same time, the number of customers with bank accounts/e-wallets in financial institutions and payment service providers, who are capable of conducting transactions via Bakong, reached approximately 30 million accounts, estimated to be 1.69 times the total population.

The system also offers payments via the KHQR Code for transactions within Cambodia.

As of the end of 2024, about 4.5 million accounts had registered for KHQR payments, a 36.4% increase compared to the end of 2023.

Hong Vannak, an economist at the Royal Academy of Cambodia, told The Post on February 26 electronic payment systems have become increasingly popular among users of all demographics, especially in urban areas with good internet access.

He noted that the use of the banking system for payments has brought significant benefits to both the public and the government.

“For the public, using Bakong for payments makes it easier for them because they no longer need to carry large amounts of paper money. Payments are faster, and there is no concern about counterfeit money, as well as a reduction in the transmission of certain diseases through paper currency. For the government, it can reduce the costs of printing paper money and have greater ease in monitoring the transfer of funds between one or multiple accounts,” he said.

“As transactions become faster, the benefits for the national economy and the people will also improve,” he added.