On the back of Cambodia’s rapid growth in digital transactions and cross-border payments, Cambodia Post Bank Plc (CP Bank) has joined hands with Inpay, one of Europe’s fastest growing fintech companies to launch international money transfer services in Cambodia.
According to Inpay, the partnership, which was signed on Sept 5, would see CP Bank’s customers in Cambodia and abroad benefit from the “convenience and extensive network of postal services that Inpay’s Eurogiro network provides”.
Eurogiro is a postal network comprising 70,000 post offices worldwide, which allows instant, seamless and hassle-free international cash remittances.
With the partnership, Cambodians abroad can instantly send money at affordable rates to their friends and family in Cambodia to over 60 CP Bank branches nationwide.
The bank stated that this is the “first time such cross-border cash remittance services have been made available to Cambodians”, which provide a “much-needed lifeline between Cambodians abroad and their loved-ones at home”.
Thomas Jul, CEO of Inpay, said the partnership allows the Cambodian diaspora to remit money home easily, faster and at affordable rates via Eurogiro.
“The partnership with CP Bank marks a significant step towards enabling international and easy-to-access financial infrastructure in the region,” he added.
Toch Choacheck, CEO of CP Bank observed that there are many Cambodian migrant workers who want to send money home to support their families here.
“With this new service, CP Bank would not only be providing a wider option for remittances in the country, but also contribute to improving overall economic activity in Cambodia. This is an easy and affordable way for the market [in response to] an inclusive financial system,” he said.
In July, National Bank of Cambodia (NBC) governor Chea Serey said it has been working with several countries globally to increase the scope of payment systems which are regarded as quick, secure and low-cost to promote cross-border economic activities.
Cambodia has been linked up with Thailand and Malaysia through Bakong, while efforts to connect with Vietnam, Laos, Myanmar, China and India are ongoing, she said.
Serey explained that the cross-border platform enables Cambodians in Thailand to scan and pay using riel-denominated accounts while Thais in Cambodia can scan and pay in the local currency, which she said would promote use of the riel.
She shared that Bakong, a quasi-central bank digital currency launched on Oct 28, 2020 developed by Japanese tech firm Soramitsu Co Ltd, has made it possible for less-affluent rural residents to access and benefit from formal financial services.
Meanwhile, Bakong has received several awards, with Japanese Prime Minister Fumio Kishida hailing the system as a model for international cooperation, namely between the NBC and Soramitsu, she added.
By end-2022, registered e-wallet accounts stood at 19.5 million, with transactions jumping to one billion from 708 million, pushing up total transaction value 34 per cent to $272.8 billion.