The National Bank of Cambodia (NBC) has launched a new mobile payment system for tourists based on Bakong, the Southeast Asian country’s version of a central bank digital currency (CBDC).
According to a report by the Phnom Penh Post, the Bakong Tourists payment system is designed to improve the transaction process for visitors to the country while promoting the usage of the local currency. Keen on stifling the dollarization of its economy, NBC says the new payment platform will lean on the Cambodian riel and enjoy mass acceptance from merchants.
The NBC confirmed a commitment to setting up QR locations nationwide to streamline payments using the mobile application. Per the announcement, the mobile app requires no fees and offers the same settlement speeds and efficiency as the main Bakong app.
“For KHQR payments, we have up to 3.3 million locations nationwide, which is a significant number,” said NBC Governor Chea Serey. “In Phnom Penh and Siem Reap, both small and street vendors also have QR codes. This makes it very convenient.”
Besides setting up QR locations, the NBC has invested heavily in promoting the tourist payment app, partnering with commercial banks, airport management companies, and tourist operators.
Tourists keen on using the payment platform can download the app on iOS or Android devices and confirm their identity through email verification. However, given the limited Know Your Customer (KYC) requirements, the NBC says tourists relying on email verification will be limited to 4 million riels ($1,000) daily.
However, the NBC added another KYC verification process involving tourists to confirm their identities via hotels or tourism agents without requiring a phone number. Users who lean on accredited agents can spend up to 12 million riels ($3,000) daily.
After verification, travelers can top up their accounts at commercial banks or accredited hotels, but the NBC says that a future upgrade will allow users to add funds using mainstream card services.
“In the past, tourists only used cash, whether riel or dollars. With Bakong Tourists, we’re not sure how convenient it will be,” said local tour guide Met Thong. “It seems like they have to download and register, then deposit money into the app, which might add more hassle for them.”
Expanding the scope for Bakong
The NBC noted that tourists can withdraw their funds from banks anytime or donate the leftovers to charities via the mobile application at the end of their trip. For tourists visiting Cambodia’s neighbors, the central bank disclosed that the funds in the mobile app can be used in other countries, hinting at cross-border functionalities.
To improve usability and efficiency, the NBC has a dedicated customer service unit with tourists urged to reach out via Telegram and WhatsApp.
“It is important that we encourage tourists to exchange for Khmer currency and use it directly, as it is easier,” Khmer Angkor Tourist Guide Association President Khieu Thy told The Post. “This also helps reinforce our sovereignty, territorial integrity and national identity.”
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Source: https://coingeek.com/cambodia-bakong-app-boosts-tourism-by-enabling-payments-for-3-3m-locations/