Visa, a world leader in digital payments, has released findings from its latest Visa Consumer Payment Attitudes study indicating Cambodians prefer using cash to make payments, even as their Southeast Asian neighbors increasingly embrace digital payments.
According to Visa’s news release, nearly all (97%) survey respondents in Cambodia use cash for payments, up from 86% in 2022 and 64% in 2021, when concerns about spreading the COVID-19 virus limited the handling of cash. 79% of Cambodians surveyed said cash was their preferred method of payment, significantly higher than the Southeast Asian average of 26%. Fewer Cambodians reported attempting to go cashless, with 23% doing so in 2023, down from 32% in 2022, and well below the region’s average of 72%.
Continuing a similar trend since last year’s study, Gen Z (95%) displayed higher usage for cash, albeit less so than Gen X and Y respondents (98% each). This signals a consistent dependence on cash among the youth, based on a misconception that cash is nearly
as secure as digital modes of payment.
”It is not unusual to observe disparities in progress as countries navigate digital transformation,’ said Ms. Ivana Tranchini, Visa Country Manager for Cambodia. ‘A collaborative approach is key, and we look forward to working with our public and private sector partners to continue raising awareness about the benefits of digital payments. This will help Cambodia keep pace with our regional neighbors.’
‘Interoperability is critical in driving the adoption of digital payments and creating seamless payment experiences,’ added Ms. Tranchini. ‘At Visa, we are committed to providing secure and convenient digital payment solutions, and providing inclusivity in enabling digital payment adoption by facilitating consumers, businesses, and the entire economy to participate in the journey.’
Embedded finance, which is the integration of financial services or products into non-financial services or products, is another area for development in Cambodia. Only 3% of survey respondent
s said they have used embedded finance for payments, compared to the regional average of 49%. In the case of embedded finance for lending, only 2% of Cambodians surveyed had used it, compared to the regional average of 45%. Meanwhile, only 2% of respondents had used embedded finance for insurance, versus 37% regionally.
Despite Cambodia having some way to go in the adoption of digital payment modes, consumers have noticed an increase in cashless acceptance. 75% of respondents said they observed more stores accepting mobile wallet payment compared to a year earlier. Some data suggest digital payments are still growing among Cambodian consumers. For instance, VisaNet data shows that payment volume of Visa cards issued in Cambodia across all payment methods, both domestically and cross-border, rose 22% year-on-year in the fourth quarter of 2023, while the number of monthly domestic contactless transactions made on Visa cards increased 16% year-on-year in December 2023.
‘We are accelerating acceptance expansion
among small and medium-sized businesses (SMBs) by bolstering merchant partnerships, introducing new acceptance technologies, and supporting digitization of government platforms,’ said Ms. Tranchini. ‘The convenience and safety of digital payments and platforms provide SMBs with access to important markets so they can acquire more customers and grow their business.’
An example of supporting the growth of Cambodia’s payments ecosystem was Visa’s launch of the National Net Settlement Service in Cambodian Riel (NNSS KHR) program in 2021. This enables the settlement of funds in Cambodian Riel through VisaNet Settlement Service. NNSS KHR is a secure and scalable domestic processing solution that combines the Visa global network with local currency settlement, providing operational reliability and reducing clients’ foreign currency risk exposure.
Source: Agence Kampuchea Presse
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