NPCI International launches cross-border UPI payments in Cambodia
New Delhi, June 3
NPCI International Payments Limited, the international arm of the National Payments Corporation of India, has officially partnered with ACLEDA Bank Plc. to launch Unified Payments Interface acceptance in Cambodia, according to an official statement issued on Wednesday.
The breakthrough collaboration went live following a formal ceremony in Phnom Penh, attended by Chea Serey, Governor of the National Bank of Cambodia, alongside high-level representatives from the Reserve Bank of India (RBI).
The event marked the completion of Phase 1 in establishing a cross-border QR payment linkage between the two nations through Bakong's KHQR, Cambodia's national QR code, the statement said.
The first phase enables millions of Indian travellers to make seamless QR payments at over 4.5 million Cambodian merchants, with a two-way corridor to follow. While the first phase prioritises incoming Indian travellers, the partnership is explicitly designed to scale. In the subsequent phase, the corridor will become fully bi-directional.
Cambodian citizens visiting India will soon be able to use their domestic banking and digital payment applications to scan millions of UPI QR codes throughout India, completing a highly advanced, two-way interoperable financial network through Bakong's KHQR.
This digital payment corridor represents a major shift in how commerce operates between the two countries, delivering immediate benefits of enhanced traveller convenience by eliminating the friction of physical currency exchange, carrying large amounts of cash, or navigating unfamiliar foreign exchange fees.
It will also give an economic boost to Cambodian businesses, which will gain immediate access to a massive, tech-savvy Indian visitor demographic, driving higher transaction volumes. The local merchants will also experience optimised cash management, lowered overhead costs associated with physical cash handling, and secure, real-time transaction settlements, the statement added.
UPI is already accepted in eight countries - Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar and Sri Lanka - enabling Indian travellers to make seamless payments abroad through familiar platforms. Now, Cambodia is the ninth country joining the list.
— IANS
Reader Comments
As someone who works in fintech, this is a smart move by NPCI. The two-way corridor will really boost tourism and small business revenue in both countries. But I hope they work on making the UX seamless—sometimes cross-border QR payments can get glitchy with currency conversion.
Excellent initiative! UPI is one of India's greatest tech gifts to the world. Now even Khao San Road vibes in Phnom Penh will accept our payments 😄. I just hope the RBI keeps an eye on security protocols since these are cross-border transactions. Better safe than sorry!
Nine countries now! That's impressive growth for UPI. But I hope this doesn't just benefit big merchants in tourist areas. Local street vendors and smaller businesses in Cambodia should also get easy access to this system. Otherwise, it's just another digital divide.
Great for tourism! But I'd love to see a breakdown of the transaction fees. Is there any extra cost for Cambodian merchants to accept UPI compared to their local system? Transparency on pricing will be key for small business adoption. Otherwise, solid progress!
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