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Unlocking a new era of cross-border financial fluidity, Cambodia's Bakong digital currency system has inked a groundbreaking memorandum of understanding (MoU) with Alipay, a leading Chinese payment provider. This strategic alliance, reported by Cambodia's Phnom Penh Post, ushers in a transformative phase for international transactions.
The MoU, ceremoniously signed at the FinTech Expo in Singapore, sets the stage for Cambodian vendors to utilize QR codes from Bakong's KHQR network. This empowers them to seamlessly make payments to over 80 million Alipay merchants globally, fostering an extensive network for cross-border payments between Cambodia and China.
Concurrently, Chinese visitors exploring the wonders of Cambodia can partake in a shopping spree by scanning QR codes from the Bakong system at participating merchants, using Alipay as their trusted payment method.
Governor Chea Serey of the National Bank of Cambodia emphasized the monumental importance of this collaboration, particularly as Cambodia becomes an increasingly popular destination for Chinese and international tourists. This strategic partnership facilitates payments in both the local currency, riel (KHR), and the US dollar (USD), adding a layer of flexibility for users.
Douglas Feagin, Senior Vice President of Ant Group and Head of Alipay+, expressed gratitude for the partnership, acknowledging its role in enhancing the capability of Alipay partners to conduct seamless transactions across the KHQR network. He highlighted the added convenience for tourists who prefer to 'pay like a local,' utilizing their familiar payment methods wherever they go.
Khim Sambo Rothana, Head of Public Relations and the Corporate Social Responsibility (CSR) department at ABA Bank, welcomed the MoU as a positive stride toward promoting the use of the Cambodian fiat currency. This collaboration not only boosts the accessibility of digital payments but also aligns with the global trend of 'paying like a local' for enhanced convenience.
In the first half of 2023, Bakong has already demonstrated its prowess with over 35.4 million transactions, totaling more than $12 billion. This remarkable figure represents approximately 67% of Cambodia's gross domestic product (GDP). Beyond Cambodia, Bakong's influence extends to Vietnam, Thailand, and Malaysia, underlining its commitment to fostering financial inclusion and innovation across borders.
In a world where seamless cross-border transactions are the heartbeat of economic evolution, the Bakong-Alipay synergy emerges as a pioneering force propelling Cambodia into the global digital financial landscape. As the partnership unfolds, the stage is set for a new chapter in international payments, championing convenience, accessibility, and financial empowerment for all stakeholders involved.
