How will QR code payment systems help the retail industry in Cambodia?

• Proeksa Meas
• 5 November 2019
• Uncategorized
• 3136 Views

With the rapid increase in retail supply and space, there will soon be a QR code-based payment system to Cambodia. By 2024, shopping mall space will increase to 496,857 square metres, retail podium will reach 143,956 square metres, and community mall space will also extend to approximately 100,000 square metres, according to a recent CBRE report.

James Hodge, CBRE Cambodia Director said that “Phnom Penh’s retail market is developing rapidly, not only in terms of the amount of space being constructed but also in the breadth and depth of the retail offering and the sophistication expected by consumers.”

“Advances in payment systems will always be a welcome addition to the retail sector as they can provide greater flexibility and much more information that can collected and used to the benefit of retailers and subsequently consumers,” Mr Hodge said.

In February, Cambodian and Thai central banks signed a Memorandum of Understanding (MoU) on cooperation on a QR code-based payment scheme and financial innovation according to a National Bank of Cambodia (NBC) statement.

The QR code application will help to encourage the usage of local currency between the individual countries. NBC Director General Chea Serey said in August that with the application, Cambodians will be able to use riel to purchase goods in Thailand, while Thais travelling in Cambodia will be able to pay in baht.

“Cashless payment offers clear advantages in terms of security, ease of access to funds and financial flexibility. Cambodia is extremely well-placed to leapfrog from its current situation in one where cash-less payments are common and well embedded; this is in part because the level of development of the existing banking system means that there are few legacy systems to overcome, furthermore, access to technology is becoming more common. With the right legislative framework, financial education and an attractive, usable payment system the opportunity to see meaningful positive impacts in the retail sector are substantial,” Mr Hodge said.

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• Business and Market