Cambodians seem to overwhelmingly prefer transactions using their mobile apps to online banking.
Data from the National Bank of Cambodia (NBC) shows how online banking fell 7 percent to 74.5 trillion riel ($18.22 billion) in 2023 from 80.1 trillion riel ($20 billion) in 2022. But for the same period, mobile banking grew 11 percent to 746.7 trillion riel ($164 billion) in 2023 from 672.4 trillion riel ($183 billion) in 2022.
NBC in its report noted, “While online banking declined slightly, the use of mobile banking and card payments accelerated steadily.”
Industry participants say their corporate customers prefer to use internet banking, while their average retail customer prefers to use their mobile phone. “For online banking, these transactions are usually done by companies, so it depends on the business flow. However, for mobile banking, it is carried out nationwide by the public with almost all individuals in Cambodia doing it,” Richard HC Liew, CEO, Bridge Bank Plc told Khmer Times.
The regulator and banks have also been working to promote higher use of Bakong, market participants say. “NBC has been at the forefront of this with the Association of Banks in Cambodia (ABC) in promoting and educating the public in the use of mobile banking through Bakong and the results have been very positive and encouraging. And we are seeing the fruits of this in the growth of mobile banking transactions in Cambodia. In fact, I believe the mobile penetration rate in Cambodia is over 100 percent, meaning 1 person has more than 1 mobile phone in Cambodia,” said Bridge Bank CEO Liew.
Apart from this, there is also the fact that mobile usage is much higher than the usage of laptops and computers in the country. According to a report by Digital 2023 Cambodia, for the first quarter of 2023, Cambodia had only 11.37 million internet users versus 22.16 million active mobile connections. Given that Cambodia’s population is just over 17 million, this figure puts active mobile connections at 131.5 percent of the total population. Meaning for every person in Cambodia; there are 1.3 mobile connections.
According to the Ministry of Telecommunications, internet usage in Cambodia has increased significantly following the Covid-19 pandemic. Online learning has also come to make more money in the post-pandemic world. But here again, while people may use laptops to learn online, when it comes to food delivery apps, selling and buying online via social media apps, paying utility bills, Cambodia prefers mobile payment via QR codes .
NBC in its report, said, “The amount of payment through QR code and Bakong system increased by 7 times and 2.7 times, respectively, in 2023, reflecting the growing trust and adoption of the public, also contributing to the promotion of the use of Khmer riel. “
Another factor that has influenced growth is Bakong’s interoperability. That one can make payments through Bakong to any merchant, any bank from their home bank. “The interoperability, efficiency and security of digital payment systems have attracted wide adoption among the public to promote financial inclusion,” NBC said adding, “KHQR and the Bakong system have gained popularity and contributed to promoting the use of the Khmer riel “.
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