Cambodia’s Bakong app - a new mobile payments and banking for tourists

The National Bank of Cambodia (NBC) has introduced the Bakong Tourists app to broaden payment options for visitors using its blockchain-based Bakong system. This app will integrate with the Chinese UnionPay system and be functional in Thailand, Vietnam, Laos, and Cambodia.

Written by ANH Dang Updated on 26-08-2024

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*Chea Serey, Governor of NBC, gives an explanation on the Bakong Tourists app*

According to the Phnom Penh Post, the Bakong Tourists payment system aims to reduce cash dependency, streamline transactions for visitors, and promote the use of the local currency to boost economic activity both locally and regionally. The NBC is focused on curbing the dollarization of its economy and believes that the new platform will leverage the Cambodian riel and achieve widespread merchant acceptance.

Currently, Cambodia has only 55,000 point-of-sale (PoS) terminals and a population of 16.8 million, with just 5,600 ATMs available. Without PoS systems, credit cards cannot be used, and the Bakong app allows payments via QR codes at 3.3 million locations.

Tourists interested in using this platform can download the app on iOS or Android devices and verify their identity through email. However, due to limited Know Your Customer (KYC) requirements, tourists using email verification can only spend up to 4 million riels ($1,000) daily.

*How to download and register an account in Bakong Tourists App*

👉 Read more: Tips for a successful trip to Cambodia

The NBC has introduced an additional KYC process where tourists can confirm their identities through hotels or tourism agents, allowing for higher spending limits of up to 12 million riels ($3,000) daily, without requiring a phone number.

After verification, travelers can add funds to their accounts at commercial banks or approved hotels, with a future update planned to enable fund additions via mainstream card services.

The Bakong system currently has cross-border payment Memorandums of Understanding (MoUs) with Thailand, Laos, Vietnam, and UnionPay International. It is expected to link with Malaysia by late August and South Korea by September. Tourists from these MoU countries can use their existing accounts to make payments in Cambodia similarly to how they do in their home countries.

NBC has promoted Bakong Tourists at airports and entry points to facilitate app downloads upon arrival. Additionally, it will collaborate with the General Department of Immigration, tour associations, hotels, and other stakeholders to further promote the app.

In the first half of 2024, transactions in riels through the Bakong system totaled 75 million, amounting to 65 trillion riels, while US dollar transactions reached 99 million with a value exceeding $38 billion.

Nonetheless, some critics have raised concerns: “Previously, tourists only used cash, whether in riels or dollars. With Bakong Tourists, we’re unsure of its convenience,” remarked local tour guide Met Thong. “It seems they need to download, register, and deposit money into the app, which could potentially complicate things for them.”

>>> Pros:

Cross-Border Use: Works seamlessly with UnionPay and is accepted in Cambodia, Thailand, Vietnam, and Laos.
Cashless Convenience: Allows payments via QR codes at 3.3 million locations, reducing the need for cash.
Flexible Spending: Offers daily limits up to $3,000 with easy verification through hotels or agents.
Wide Promotion: Actively promoted at airports and supported by local partners.

>>> Cons:

Potential Hassle: Tourists need to download, register, and fund the app, which might be seen as inconvenient.
User Concerns: It might not be user-friendly for tourists.

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