Cambodia’s central bank joins the Regional Payment Connectivity initiative
Oleh James Yau
The National Bank of Cambodia joins the nine-member initiative that strengthens Southeast Asia’s regional financial integration by encouraging the use of cross-border QR code payments and fast payment systems.
The NBC also launched the second phase of its cross-border QR payment linkage with Malaysia, alongside its joining of the RPC initiative, Image: Canva
Cambodia’s central bank, National Bank of Cambodia (NBC), is now the ninth member of the Regional Payment Connectivity (RPC) initiative.
NBC announced its participation in the initiative at the sidelines of the 12th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting in Kuala Lumpur, Malaysia, from April 8 to 10.
First established by the central banks of Indonesia, Malaysia, the Philippines, Singapore and Thailand in 2022, the RPC initiative aims to promote, faster, cheaper, more transparent and more inclusive cross-border payments.
The cooperation facilitated cross-border payment connectivity in the region, through modalities including QR codes and fast payment systems. The RPC initiative has since expanded to include the central banks of Vietnam, Brunei Darussalam and Lao PDR.
“Participating in the RPC initiative will foster regional economic growth and establish a more interconnected payment system within ASEAN,” said NBC’s Governor, H.E. Dr. Chea Serey, in a joint statement released by the nine central banks.
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Cross-border QR payments between Cambodia and Malaysia
In conjunction with NBC joining the RPC initiative, the central bank also launched the second phase of its cross-border QR payment linkage with Malaysia.
With the expansion, Malaysian travelers can now use their mobile payment applications to pay Cambodian merchants by scanning KHQR, Cambodia’s standardised QR code payment system.
Under the first phase of the launch last year, Cambodia travelers to Malaysia were able to make payments using Cambodia’s national mobile payments app, Bakong, by scanning Malaysia’s DuitNow QR code.
The developments will enable over seven million local merchants in both countries to access a wider customer base.
The NBC has been expanding its cross-border payment network having launched a similar initiative last year in partnership with Phnom Penh Commercial Bank and South Korea, for clients of Jeonbuk Bank to make transactions through the KHQR code.
A new law passed in the same year also saw NBC dip its toes in cryptocurrencies, granting permission for payment companies and commercial banks to transact with stablecoins under strict conditions.
ASEAN's journey toward regional payment connectivity
The statement added that the RPC initiative “supports broader economic activities in ASEAN, including greater market access for small and medium-sized enterprises (SMEs), enhanced trade facilitation, and improved remittance flows.”
A research paper from market intelligence firm IDC on Southeast Asia ecommerce market found that among the 62 per cent of the merchants surveyed, their average cross-border transactions were 21 per cent higher than domestic transactions.
GovInsider previously reported how digital disbursements facilitated humanitarian aid delivery across Asia Pacific.
In Asia Pacific, digital payments are poised to surpass cash transactions by 2028, as consumers increasingly ditch paper dollars for digital wallets.
For instance, Singaporean travelers attending the upcoming Songkran festivities in Thailand will have an easier time paying for local goods with the connectivity of Singapore's PayNow to Thailand’s PromptPay.
The global digital payments market is projected by Statista to reach US$20.37 trillion (S$27.56 trillion) in 2025 and grow at a compound annual growth rate (CAGR) of 15.9 per cent to attain US$36.75 trillion by 2029.