The central banks of Cambodia and Malaysia have launched the first phase of a cross-border payments system that initially enables Cambodian travellers to purchase good and services in Malaysia using QR codes.
National Bank of Cambodia (NBC) and Bank Negara Malaysia (BNM) officially launched the system on Thursday, following through on a Memorandum of Understanding (MoU) signed by NBC and BNM in February 2024 to strengthen cooperation in payment systems and innovation.
Under the first phase, which was completed on Thursday, users from Cambodia can make instant retail payments in Malaysia by scanning DuitNow QR codes displayed by merchants using either NBC’s Bakong app or the Maybank M2U KH app. Maybank is the sponsoring and settlement bank for the cross-border payments scheme.
NBC Governor Chea Serey told the Phnom Pehn Post that Cambodian citizens holding riel accounts can make payments using Khmer riel as the base currency, while the settlement currency will be in Malaysian ringgits.
The second phase will enable Malaysians traveling to Cambodia to pay for purchases at Cambodian merchants by scanning KhmerQR (KHQR) codes using mobile payment apps from participating financial institutions. NBC and BNM did not give a timeline for when the second phase will be completed.
In a joint statement, BNM and NBC said the cross-border QR payments initiative will give over five million merchants in Cambodia and Malaysia – mostly small businesses – access a wider customer base from both countries, as well as drive trade, boost tourism and promote economic growth in both countries.
BNM Governor Abdul Rasheed Ghaffour added that the initiative contributes to ASEAN’s Regional Payment Connectivity initiative for greater regional financial integration and inclusive economic development.
“This initiative will not only support the broader digital economy agenda but also boost economic activities across the region by leveraging on the convenience and efficiency of QR payments,” he said in a statement. “We remain committed to driving greater economic and financial integration within ASEAN, in close collaboration with regional partner by advancing safe and secure digital financial services.”
Malaysia is the latest Asian country to establish cross-border payments with Cambodia, which has struck similar deals with China, Laos, Thailand, Vietnam and – most recently– South Korea. Last month, NBC and Phnom Penh Commercial Bank launched the first phase of a cross-border QR-code payments initiative with South Korea’s Jeonbuk Bank and PPCBank.
