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KHQR – a unified QR payment solution
In 2020, the National Bank of Cambodia launched a blockchain-based peer-to-peer payment system called Bakong, which also happens to be one of the first central bank digital currencies in the world.
With QR code payments booming in the country and most of the major banks integrating e-payment features into their apps, the challenge was to enable greater interoperability between banks. This has now been achieved as the NBC has implemented a new feature of the Bakong system called KHQR, that allows inter-bank transactions for all financial entities that are members of the Bakong system.
In more concrete terms, this means that businesses can now accept digital payments from customers of any participating bank through a single QR code. As it stands, Bakong has currently on-boarded 35 institutions on its platform with some of the country’s largest operational banks and another 20 on the way. This is a great improvement for the country’s e-banking ecosystem with fast, easy and secure transactions.
KHQR as the main tool for cross-border transactions
Bakong’s proposed unified QR code payment system also has great potential for cross-border transactions and the NBC, along with all its partners, is looking closely at it to further promote regional interoperability and financial inclusion.
As Maybank is one of the institutions included in the Bakong project, the KHQR function can already be used in Malaysia, according to recent reports.
NBC is also working with Thai authorities to boost the cross-border payment system that was launched between the two countries in 2020. The Thai bank partner in this project is Siam Commercial Bank (SCB), but for now, only Cambodians using the KHQR system can make payments in Thailand.
Most recently, executives of major Cambodian e-commerce companies have expressed their views on possible collaboration with Chinese electronic payment gateway solutions.
In conclusion
While the Bakong project is still in its infancy, the possibilities offered by this technology are immense and could lead to a unified regional payment system with an excellent user experience, where customers do not have to think about exchanging currencies. Using blockchain technology, Bakong is also said to be efficient and very secure.
Cambodia’s efforts to build an advanced and forward-looking digital economy are remarkable, and the Kingdom’s ambitions also seem to be stimulating its neighbours. Businesses welcome these ongoing improvements, as they benefit greatly from them. To find out more about setting up and operating a business in Cambodia, why not book a consultation with one of our experts.
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