Key Facts for Cambodia
- Primary real-time rails: Bakong, KHQR, Cambodian Shared Switch (CSS).
- Typical settlement times: Settlement occurs in less than five seconds.
- Common limits: Varies by institution.
What “real-time payments” means in Cambodia
In Cambodia, “real-time payments” describe digital transactions processed and settled in under five seconds. This system, primarily driven by the Bakong platform, allows for instant fund transfers between accounts at different banks and payment providers. The scope is extensive, covering peer-to-peer transfers, merchant payments via the national KHQR code, and e-commerce. It supports both Khmer Riel and US dollars, with transaction values in 2024 exceeding 300% of the nation’s GDP. While no explicit legal definition exists, the framework is governed by the National Bank of Cambodia.
The National Bank of Cambodia (NBC) is the lead regulator and operator of the country's real-time payment infrastructure. While the NBC is the central operator for the Bakong system, the Cambodian Shared Switch (CSS) helps clear card-based transactions. The national KHQR code is built on EMV standards for interoperability. The core system’s messaging protocol is not specified, though many modern payment rails are adopting ISO 20022 for its rich data capabilities (industry norm), a likely future path for the system as it expands.
Cambodia’s state-led, mobile-first approach demonstrates how emerging economies can leapfrog legacy banking systems with innovative payment infrastructure.
Payment Rail Overview
Bakong
Launched in October 2020, Bakong is a blockchain-based payment platform operated by Cambodia's central bank. It functions as a tokenized deposit system, where digital balances are fully backed by funds in traditional bank accounts. Users can connect their bank accounts to the Bakong app to send money and pay for goods in real-time using QR codes or phone numbers.
- Blockchain-based: Built on the Hyperledger Iroha framework, which provides a secure and transparent ledger for transactions.
- Real-time settlement: Transactions are processed and settled in less than five seconds, offering immediate finality.
- Dual-currency support: The system natively supports both the Cambodian Riel (KHR) and the US Dollar (USD).
- High throughput: The platform is designed to handle more than 2,000 transactions per second, accommodating high-volume usage.
Pros
- Promotes financial inclusion for the unbanked.
- Offers fast and free person-to-person transactions.
- Supports cross-border payments with several neighboring countries.
Cons
- Active user retention is low, with only 2% of issued wallets being actively used.
- The US dollar still accounts for 70% of transaction value, hindering de-dollarization goals.
- Financial literacy remains a significant barrier to adoption in rural areas.
KHQR
Introduced in July 2022, KHQR is Cambodia’s national standard for QR code payments, operating on the Bakong system. It creates a unified payment experience by allowing merchants to display a single QR code for all participating banks and e-wallets. This eliminates the need for multiple QR codes at the point of sale, simplifying transactions for both consumers and businesses.
- Standardized code: Provides a single, EMV-compliant QR code that is interoperable across the entire network of member institutions.
- Merchant simplicity: Businesses only need to display one QR code to accept payments from any supported app, reducing clutter and confusion.
- Cross-border capability: The system is connected with payment networks in South Korea, Japan, Malaysia, and with Alipay+, facilitating payments for tourists and international trade.
Pros
- Dramatically simplifies the payment process for small businesses and street vendors.
- Supports tourism through the Bakong Tourist App.
- Promotes the use of the national currency through automatic settlement in KHR for cross-border transactions.
Cons
- Adoption is limited in rural areas due to lower digital literacy and infrastructure.
- The system's effectiveness is tied to the broader adoption of the underlying Bakong platform.
- Despite its growth, the value of transactions remains dominated by the US dollar.
Cambodian Shared Switch (CSS)
The Cambodian Shared Switch is an interbank network established by the National Bank of Cambodia to unify the country's card-based payment infrastructure. It allows debit cardholders from any member bank to perform transactions at any other member bank's ATM or point-of-sale (POS) terminal. This system acts as the central clearinghouse for traditional card payments nationwide.
- Nationwide interoperability: Connects ATMs and POS terminals from different banks into a single, cohesive network.
- Card-based focus: Specifically designed to process debit card transactions, including cash withdrawals and retail payments.
- Interbank settlement: Functions as a shared switch to clear and settle transactions between the card-issuing bank and the merchant's bank.
Pros
- Increases the convenience and utility of debit cards for consumers.
- Creates a unified experience for card payments across the country.
Cons
- Represents a more traditional banking infrastructure compared to mobile-first systems like Bakong.
- Full potential may be limited by the cost-conscious nature of many smaller Cambodian banks.
Limits, Fees, and SLAs
- Limits: Transaction and daily caps are determined by individual member banks; users should contact their bank for specific details.
- R2P Fees: None. The Bakong system allows users to transact without fees, promoting widespread adoption for business and personal use.
- Operating Hours: Services are available 24/7, allowing users to send and receive money at any time across Cambodia.
Compliance and Risk
KYC/KYB & AML
Cambodia's framework, governed by the NBC and the AML/CFT Law, mandates tiered customer due diligence. Financial institutions must implement risk-based KYC, from basic phone number registration to full identity verification, which dictates transaction limits and helps prevent illicit financial activities.
Data Residency & Privacy
While specific data residency laws are not publicly detailed, regulations require financial firms to maintain comprehensive customer and transaction records. This data must be kept for at least five years, ensuring accessibility for inspection by competent authorities upon request.
Fraud Controls
Fraud prevention is built into the compliance framework. The tiered KYC system and transaction limits are the first line of defense. For crypto and other financial services, mandatory monitoring and reporting of suspicious transactions to the financial intelligence unit are required.
Recordkeeping & Audits
The AML/CFT law provides clear mandates. Businesses must maintain comprehensive records of all customer data and transactions for a minimum of five years. This ensures transparency and allows licensed entities to produce audit-ready reports for regulatory bodies like the National Bank of Cambodia.
Lightning Network Integration as a Solution
The Lightning Network is a second-layer protocol built on Bitcoin that processes transactions off-chain for near-instant, low-cost payments. While local RTP rails excel at domestic transfers, they often face limitations in global interoperability. The Lightning Network can act as a global settlement layer, connecting these domestic systems to a worldwide payment network and filling gaps where local rails are unavailable or inefficient.
While Cambodia’s rails offer settlement in under five seconds, Lightning transactions are often sub-second. Both systems provide extremely low-cost payments, making microtransactions practical. The fundamental difference is reach; where domestic rails are confined by national borders and bilateral agreements, the Lightning Network offers a truly global payment infrastructure accessible to anyone with an internet connection, transcending geographical and financial boundaries.
- Cross-Border Complexity: It bypasses traditional intermediaries and currency conversion processes, offering a single, unified network for international payments instead of relying on country-by-country agreements.
- Scalability Limitations: By processing transactions off-chain, it provides a framework for millions of transactions per second, moving beyond the capacity constraints of a single, centrally managed system.
- Financial Gatekeeping: It operates on an open, permissionless network, giving access to financial services in regions with limited banking infrastructure or where regulatory hurdles slow the deployment of new products.
For businesses aiming to operate on a truly global scale, exploring the Lightning Network is a logical next step in payment innovation.
B2B Enterprise Use Cases
- Supplier Payments – A company pays international suppliers instantly over the Lightning Network, bypassing correspondent banks and SWIFT delays.
“Business value:” Reduces cross-border transaction fees and settlement times from days to seconds. - Merchant Settlement – A global e-commerce platform receives customer payments from different countries and settles them instantly into a central account.
“Business value:” Eliminates chargeback fraud and provides immediate access to sales revenue. - Treasury Optimization – A multinational corporation moves funds between its international subsidiaries in real-time to manage liquidity.
“Business value:” Provides 24/7 global liquidity management without waiting for banking hours. - Payroll – A company pays its global remote workforce, including freelancers and gig workers, with instant, low-fee salary disbursements.
“Business value:” Simplifies global payroll and offers employees immediate access to their earnings. - API Monetization – A software company charges for API calls on a per-use basis, collecting micropayments automatically for each request.
“Business value:” Creates new revenue models by making micropayments for digital services practical.
Cross-Border Transactions and Remittances to Cambodia
Cross-border real-time payments are complex, requiring the connection of separate national payment systems—a process known as rail bridging—and the management of foreign exchange (FX) paths. Reaching Cambodia involves navigating a fragmented ecosystem, strict regulatory compliance, and a dual-currency environment. Businesses must overcome these technical and operational hurdles to achieve instant, secure fund transfers, which presents a significant challenge for efficient global payment solutions that often rely on slow, traditional banking systems.
- China: A major corridor for tourism and retail, the value of transactions from Chinese UnionPay-powered wallets in Cambodia nearly tripled year-on-year in early 2025. This linkage allows Chinese travelers to use their native payment apps for QR code purchases across the country.
- Malaysia: Connectivity with Malaysian banks like Maybank allows travelers to make direct QR payments to Cambodian merchants. This integration is part of a broader regional effort to build cross-border payment capabilities using real-time systems.
- South Korea: Through integrations with partners like JB Financial Group, South Korean visitors can use their domestic payment apps to pay via KHQR. These transactions are automatically settled in Khmer Riel, simplifying payments for tourists and supporting Cambodia's digital economy goals.
The Lightning Network functions as a universal settlement layer, bridging disparate payment systems. It executes international transactions in seconds, not days, by bypassing traditional correspondent banking, which drastically reduces both settlement times and the high fees associated with legacy financial intermediaries.
How Lightspark Makes Integration Easy
Lightspark helps fintechs, digital banks, wallets, and exchanges integrate with the Lightning Network. We abstract away the complexities of the protocol by managing liquidity, optimizing routing for high success rates, and providing robust developer tooling. Our platform is built with enterprise-grade compliance in mind, simplifying the process of launching new payment products. This allows you to offer your customers sub-second settlement globally, expanding your reach without the operational overhead. To learn how you can connect to the world’s most open payment network, Talk to our team.
Sources and Further Reading
- https://bakong.nbc.gov.kh/en/: Official portal for Bakong platform.
- https://fintechnews.sg/112067/cambodia/qr-code-and-instant-payments-drive-cambodias-e-commerce-surge/: QR payments fuel e-commerce growth.
- https://www.lightspark.com/contact: Connect with the Lightspark team.
- https://www.lightspark.com/knowledge/how-the-lightning-network-is-transforming-bitcoin: Lightning Network's transformation of Bitcoin.
- https://www.lightspark.com/knowledge/is-crypto-legal-in-cambodia: Cambodia's cryptocurrency legal framework defined.
- https://www.lightspark.com/knowledge/what-does-the-lightning-network-do: Defining the Lightning Network's purpose.
- https://www.lightspark.com/news/insights/what-are-lightning-payments: An introduction to Lightning payments.
- https://www.prnewswire.com/apac/news-releases/facilitating-cross-border-payments-for-chinese-and-cambodian-residents-unionpay-powered-wallets-achieve-significant-transaction-growth-in-cambodia-302560449.html: UnionPay transaction growth in Cambodia.
- https://www.stanchionpayments.com/cambodia-digital-payments-growth/: Charting Cambodia's digital payment growth.
- https://www.transfi.com/blog/cambodias-payment-rails-how-they-work---bakong-khqr-the-national-push-for-financial-inclusion: Explaining Cambodia's payment rail system.
- https://www.transfi.com/blog/common-local-payment-methods-and-solutions-in-cambodia: Overview of local payment solutions.
