Is there a new wave of modernization sweeping over Cambodia’s tourism sector? The answer is a resounding yes, thanks to the Alipay collaboration with Cambodia for CBDC usage. This strategic partnership aims to broaden the horizons of tourist payment options through the Central Bank Digital Currency (CBDC) infrastructure.
Alipay and Cambodia: A Partnership for Progress
Alipay, a global leader in digital payment platforms, is joining forces with Cambodia to simplify tourist payments and enhance convenience. The National Bank of Cambodia (NBC) now facilitates payments from tourists’ e-wallets linked to bank accounts in the local Cambodian currency, Khmer Riel, via KHQR. This payment system is widely accepted by merchants across various Asian countries.
Douglas Feagin, Head of Alipay+, believes this partnership will not only provide tourists with familiar payment methods but also empower local businesses, particularly micro-merchants. KHQR, an initiative of NBC launched in 2022, utilizes a standard QR code that can be scanned by multiple mobile banking apps. This system is backed by Bakong, a blockchain-based platform that supports transactions in both Cambodian Riel and the US Dollar.
Boosting Tourism with Improved Payment Systems
With international tourist arrivals in Cambodia nearly quadrupling in the first nine months of 2023 compared to the previous year, there’s a clear demand for more efficient payment systems for local merchants. Dr. Chea Serey, NBC’s Governor, noted that this ease of making payments would stimulate economic activity by boosting merchants’ revenue.
Moreover, Bakong CBDC users who fulfill the complete Know Your Customer (KYC) criteria and Khmer Riel bank account holders can now transact at Alipay+ global merchant locations using local wallets and apps that NBC supports.
Connecting Local and Global Payment Platforms
Cambodia is keen on leveraging CBDC, local fintech applications, and global payment apps on standard rails to capture additional tourist spending for growth. This strategic move bridges the gap between local and global payment platforms, creating a seamless transaction experience for tourists and merchants alike.
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