Thailand
Cambodia: National curfew may be catalyst for rural adoption of digital payments
With nationwide curfews implemented for the first time since the outbreak, fintech experts are expecting digital payments to gain traction in even more provinces
Industry experts said that the previous round of lockdowns and curfews isolated to Takhmao and Siem Reap towns, as well as in the capital served as a catalyst for digital adoption in more urbanised areas.
Some businesses, including Nham24, previously said digital transactions accounted for more than 50 percent of their business during the lockdown.
“During the past lockdowns in the capital, we saw a large surge in e-commerce transactions and hence, partially e-commerce as well are not inherently linked in our country, but in times like these, we see the gradual trendsetting towards the right direction, being full digitalisation of entire consumer purchase journey,” Tomas Pokorny, secretary-general for the Cambodian Association of Finance and Technology told Khmer Times.
“However, looking at this objectively, lockdowns and similar situations are not good for the economy, but provide a speeded-up testing ground for technology finance [fintech, digitalisation] influence on other sectors as well, such as logistics, trade, communications and others,” he stressed.
“We have also seen an increased need for recognition of digital identity confirmation, such as electronic signatures, in both private and public sectors,” he said.
CAFT Chairman Remi Pell stressed that digital payments will likely see a rise during the lockdowns but “practical and mass scale increase in adoption will likely take time”
“Our perception is that we will need to adhere to a long-term outlook where momentum survives the pandemic and ups and downs of this age and for that, it will need long lasting and sustainable boost. However, despite Covid-19 being terrible for the country, it is one of the short-term boosters of digital transactions, we must admit,” Pell said.
Association of Banks in Cambodia Chairman In Channy echoed CAFT, saying that while the national curfews will temporarily increase digital payments and fintech use in rural areas briefly, more was needed to improve the infrastructure in remote areas.
“Further development is needed, including in urban areas,” he said.
Wing Bank, which was recently awarded a commercial banking licence, has granted clients the opportunity to transfer up to $150,000 to other Wing accounts for free.
Clients may also use WingPay at 60,000 merchants across the country. The firm announced earlier this week that it had rolled out its WingMall services in Siem Reap.
Manu Rajan, division chief executive officer for Wing, said that the company would allow users to purchase goods from hundreds of merchants using their smartphones without the need to leave their homes.
“Another unique service from WingMall to ensure the safety of Cambodians during the pandemic is the Critical Cash Out and Cash in Services,” he said.
Using the service, customers can place a cash out order and have a delivery person personally bring the money to their doorsteps.
Any bank under the Bakong mobile application is eligible to enjoy the service and individuals may use their respective bank apps to place the orders.
“This service is currently available for all Wing customers in Phnom Penh and Siem Reap now and will be rolled out to other provinces very soon. We hope that these services from Wing will help everyone stay safe at home and prevent the spread of Covid-19 in our community,” said Manu.
Source: https://www.khmertimeskh.com/50904610/national-curfew-may-be-catalyst-for-rural-adoption-of-digital-payments/