(Phnom Penh): Cambodia and Japan have signed a memorandum of understanding on cross-border QR payments.

The agreement between Cambodia's KHQR and Japan's JPQR was signed by the National Bank of Cambodia (NBC) and the Payments Japan Association (PJA).  

This initiative seeks mutual interconnectivity between the nations and is in two phases. In phase one, Cambodian users of the Bakong system can make payments in Japan by scanning JPQR, while in phase two, Japanese users can pay in Cambodia by scanning KHQR.

NBC said Cambodian banks ACLEDA and Sathapana will sponsor cross-border QR code payments with Japan. PJA has appointed NETSTARS as the payment operator for QR code payments with Cambodia.

“This initiative will support and promote digital payments, enhancing transaction security and facilitating seamless cross-border payments, thereby stimulating tourism and reducing the need for currency exchange during visits to either country,” the NBC said. 

The agreement for cross-border QR code payments between KHQR and JPQR aligns with the memorandum of cooperation established by the National Bank of Cambodia and Japan's Ministry of Economy, Trade and Industry on December 18, 2023, during a visit by former Prime Minister Kishida Fumio to Cambodia. 

The new initiative is expected to benefit local businesses and people, enhancing cross-border payment systems to boost investment, trade, and business ties between the nations.

Japan has been a vital partner in Cambodia’s development since the 1990s. While diplomatic ties remain strong, trade relations have seen remarkable growth. Japanese investments have flowed into the industrial, agricultural, and infrastructure sectors, making a substantial impact on Cambodia’s socio-economic progress.

Trade between Cambodia and Japan has increased from $1.4 billion in 2017 to $2.2 billion in 2024. 

This article was first published on Cambodianess.
=FRESH NEWS