Cambodia’s e-wallet capabilities to expand with upcoming agreement
Two leading firms in Cambodia’s financial service sector are planning to formalize a service agreement this week, helping to expand Cambodia’s growing e-wallet sector.
Business process and outsourcing company Massive Distributions as well as central bank licensed payment service institution U-Pay will be expanding connectivity, payment EDC terminals as well as QR code scanning devices.
It is reported that Massive Distributions will facilitate the recruitment and onboarding of the merchants, enable the Payment terminals, and train the merchants on the usage of e-wallet and QR code access across Cambodia.
The upcoming collaboration is tipped to expand the two companies’ digital footprint and enabler more Small and Medium Enterprises to be digitally savvy and for a wider acceptance of digital payment throughout the country.
Benefits of Business Process Outsourcing in Cambodia
Massive Distribution has been leading the way in Cambodia’s growing Business Process Outsourcing (BOP) sector. BOP is a business practice in which an organization contracts with an external service provider to perform an essential business task.
BPO can allow companies to either reduce overall operation costs, simplify business operations as well as maximize productivity with an already trained and managed workforce.
The BPO sector in Cambodia has traditionally been focused mostly on data analysis and document processing, and is now developing further into voice projects such as call centers.
Cambodia Investment Review has previously reported on the Kingdom’s rapidly growing digital payment and e-wallet industry. E-wallets are secure money management apps or online platform that allows users to make purchases with retailers on-site, transfer or send money and track rewards programs.
According to the National Bank of Cambodia, in 2021 digital payments there were 698.8 million transactions, valued at $199.76 billion in 2021 as more companies utilize e-payment technology.
In the central bank’s annual review, it stated that during the COVID-19 pandemic, e-commerce transactions and electronic payments methods increased significantly.
Electronic payment systems played a key role in facilitating both domestic and international fund transfers and trade payments, as well as in preventing COVID-19 from spreading via direct contact, they added.
Cambodia’s e-wallet market expanding rapidly
Cambodia’s Payment Service Institutions are looking to distinguish themselves as the central bank expands its own digital payment application ‘Bakong’ now claimed to register over 200,000 users.
The mobile application, launched last year, is Cambodia’s first integrated payment system and was designed to allow customers to perform several functions, such as using an e-wallet and making mobile payments, online transactions, and financial applications.
E-commerce platforms will promote Cambodian-made products, to both local and international markets, need to work better with local digital logistics infrastructure, according to sector experts.
U-Pay and E-GetS recently signed a memorandum of understanding (MoU) on digital payments partnership and leveraging the use of its ecosystems.
The core objective of this collaboration was to bring businesses and consumers together, promote cashless payments and make the food delivery experience more exciting. Orders and deliveries can be managed in a single Point Of Sale device which will allow sellers to focus on the quality of foods and speed.