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Money Transfer Within a Second: Korea’s Support for the Enhancement of Cambodia’s Retail Payment System

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In August 2020, Korean Ambassador H.E. Park Heung-kyeong and President of NBC H.E. Chea Chanto held a meeting to discuss the way forward for the Retail Payment System. During a meeting with President of NBC H.E. Chea Chanto, Korean Ambassador H.E. Park Heung-kyeong put forward the view that the system will contribute to Cambodia’s de-dollarisation policy, increase financial inclusion, and contribute to the development of e-commerce in Cambodia. They also shared the view that this system will play a crucial role for un-tact transactions during the COVID-19 crisis. Supplied

For a decade, Korea has supported the implementation and expansion of Cambodia’s financial infrastructure, with two monumental achievements. One of them is the establishment of Cambodia Stock Exchange (CSX) in 2010.

The second and most recent achievement would be the enhancement of the National Retail Payment System of Cambodia. In October 2019, the National Bank of Cambodia(NBC) soft-launched this service in Cambodia in cooperation with Korea International Cooperation Agency(KOICA), Korea Financial Telecommunications and Clearings Institute (KFTC), and Mobile C&C. One year after the system’s launch – as of September 2020 – total of 9 financial institutions (ACLEDA, Canadia, Cambodia Post Bank, Kookmin Bank, LOLC, PPCB, Prasac, Shinhan Bank, Vattanac) in Cambodia are participating in this system, and transactions using this service has exceeded 2,000 cases monthly.

Through the Retail Payment System, when a remitter sends money (riel or dollars) either by visiting a bank or using mobile banking, it is deposited to the receiver’s bank account in just a few seconds. This service allows one to pay rent, maintenance fees and utility bills virtually, which reduces the risk of having one’s cash lost or stolen. For example, an employer could pay an employee’s salary instantly into his/her bank account.


President Song Kil mo of Mobile C&C Cambodia – a subsidiary of Mobile C&C who has supported the system’s maintenance – deems the Retail Payment System as a very advanced one, having adopted KFTC’s long-standing model that has provided uninterrupted service for large-scale transactions in Korea. Supplied

 

 


With Cambodia’s smartphone distribution rate of more than 80% and mobile transactions accounting for nearly 50% of all transactions, President Shin Chang Moo of PPCB predicts that the Retail Payment System will soon become the central infrastructure of retail banking in Cambodia. KT/Tep Sony

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