Cambodia’s Central Bank tests out digital wallet to reduce cross-border payment fees

• The National Bank of Cambodia (NBC) signed an agreement with Malaysia’s Maybank to reduce digital payment platform fees.
• The remittance fees can range as high as 30%, claims Cambodia’s chief central banker.  

Cambodia’s Central Bank wants to curtail the cost of cross-border payments and is examining its in-house digital wallet, the Hyperledger Iroha-powered Bakong. Last week, the National Bank of Cambodia (NBC) signed an agreement with Malaysia’s Maybank. The banks will work together to cut down the remittance fees of their respective digital payment platforms – Bakong and Maybank2u. 

H.E. Chea Serey, Cambodia’s chief central banker, told the Khmer Times that the remittance fees can range as high as 30%. Chea Serey also stated that the partnership can reduce the fees. He said:

“The introduction of Bakong system will provide more possibilities in enhancing payment system at both domestic and regional level”

Bakong was launched in July and it accepts users from eight separate Cambodian banks, including ACLEDA Bank – the country’s largest commercial bank. On the other hand, a spokesperson for Maybank, the country’s largest bank, reported that 52% of all Malaysian online banking transactions went through Maybank2u. The partnership will be beneficial for both the banks and they could bring into a much wider audience. Datuk Hamirullah Boorhan, Head of Community Financial Services for Maybank Malaysia, said:

“We look forward to providing our customers in Malaysia and Cambodia with a convenient yet cost-effective solution for inter-country funds transfer.”