Cambodia is leveraging fintech innovations and strategic reforms to boost economic growth, financial inclusion and international partnerships, positioning itself as a key player in the Southeast Asian digital economy.
Cambodia, a Southeast Asian nation with a complex history, has undergone significant transformation. Despite the country’s dark chapters, such as the Khmer Rouge genocide that claimed nearly a quarter of the population, Cambodia has worked towards recovery and development.
Since the late 1980s, the former French colony – alongside Laos and Vietnam under French Indochina – began transitioning from a command economy to a free-market system. This shift was facilitated by the 1994 Law on Investment, which introduced a liberal foreign direct investment (FDI) regime. By 1999, Cambodia had become a member of the Association of Southeast Asian Nations (ASEAN), followed by its accession to the World Customs Organisation in 2001 and the World Trade Organisation in 2004. These steps have laid the groundwork for the country’s economic progress.
Cambodia’s economy is projected to grow by 5.8 per cent this year and six per cent next year, according to the Asian Development Bank. The country’s GDP now stands at nearly $1,760. Key industries include garments, light manufacturing, construction, agriculture and tourism.
Its vision
Looking ahead, Cambodia has outlined its economic ambitions through Cambodia Vision 2030, with seven key reforms, including addressing pandemic-related economic scarring, promoting inclusive institutions, expanding social protections, and modernising the agricultural and manufacturing sectors. Despite these advancements, about 30 per cent of the adult population remains underserved in financial services.
Fintech has seen organic growth in Cambodia, with significant adoption across the country. For example, e-wallet accounts surged from 13.6 million in 2021 to 19.5 million in 2022, and during the same period, online payment transactions soared to 1 billion, amounting to $272.8billion in total.
While only 12 per cent of the adult population used QR payments in 2021, this method is rapidly gaining popularity, mirroring trends across much of Asia. Beyond QR payments, other fintech services like e-wallets and peer-to-peer (P2P) money transfers have also expanded, with platforms such as Pi Pay, Wing and TrueMoney becoming increasingly popular.
Manu Rajan, former CEO of Wing, highlighted Cambodia’s rapid fintech growth, stating: “Though fintech is relatively new in Cambodia, more corporate and individual customers have already experienced the advantage of digital payment solutions through their business operations and in their daily lives. We now have close to 10 million annual users in a country with 16 million population.
“Over the past decade, fund transfer was carried out mainly through informal channels, leading to a risk of loss or delay. Wing has redefined the way Cambodians send and receive money with the help of the ‘human ATM’ services of our hard-working Wing Cash Xpress agents and the top-notch technology of the Wing financial ecosystem, powered by the Wing Money App.”
Government backing
The Cambodian government is embracing fintech with ambitious initiatives. In 2018, the National Bank of Cambodia (NBC) established the Fintech Steering Committee to promote and regulate digital financial services, reflecting the government’s commitment to harnessing fintech’s potential. Then in 2020, the NBC introduced the Payment System Operator (PSO) licence, marking a key step in the regulation of payment service providers.
In 2023, Cambodia launched its Financial Technology Development Policy 2023-2028, which aims to boost financial inclusion, ensure financial stability, and drive innovation in the sector.
Cambodia has also ventured into central bank digital currencies (CBDCs). In collaboration with Japanese company SORAMITSU, the NBC introduced Bakong in 2020. Since then, Bakong has garnered 8.5 million users and facilitated around $15billion in transactions, allowing users to make payments via QR codes both domestically and across the region.
Collaboration
Cambodia is actively forging partnerships with its ASEAN neighbours to strengthen its fintech ecosystem. For instance, this month the NBC and Bangko Sentral ng Pilipinas (BSP) signed a Memorandum of Understanding (MoU) to deepen cooperation between the two central banks. The agreement focuses on central banking, payment connectivity, digital financial innovation, banking supervision, and human resource development. Earlier this year, the NBC entered a similar agreement with Bank Negara Malaysia (BNM), Malaysia’s central bank, reflecting a broader regional strategy.
Also, this month saw the NBC launch the Bakong Tourists app, designed to simplify payments for international visitors. The app allows tourists to make payments at over 3.3 million retail merchants across Cambodia using their mobile devices.
The NBC also recently launched the Bakong Tourists app, aimed at simplifying payments for international visitors. The app enables tourists to make payments at over 3.3 million retail merchants across Cambodia using their mobile devices.
Additionally, organisations such as the Cambodian Association of Finance & Technology are playing a key role in driving fintech development. Cambodia’s embrace of fintech is closely linked to its broader economic development goals, positioning the sector as a crucial part of the country’s future growth.
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