A conversation with Ivana Tranchini, Visa Country Manager for Cambodia, to discuss how digital innovation in the Kingdom presents exciting opportunities for financial inclusion and progress
Much of the Cambodian economy remains outside the formal sector, with many businesses and individuals still unbanked and making payments primarily with cash. How is Visa facilitating financial inclusion in Cambodia?
Financial inclusion plays a critical role in the development of emerging economies such as Cambodia’s. Access to formal credit can be one of the key drivers of financial inclusion. Along with providing the commercial sector with liquidity, credit enables individuals to accomplish critical tasks such as starting a business, securing a mortgage, getting a student loan, and even purchasing daily necessities.
In this context, credit cards can act as a form of controlled micro-finance by allowing consumers to access credit and build a positive credit history. Unlocking modern forms of credit lowers the barrier to entry for financial services and brings more Cambodians into the formal financial sector, encouraging safe and responsible payment transactions.
Small businesses form the backbone of the Cambodian economy. What challenges and opportunities do these businesses face in a global marketplace? What benefits can digital transformation provide?
SMBs form about 98% of businesses in Cambodia, and often face barriers when it comes to digitalisation and finding the right payment solutions for their business. The convenience, ease and safety of digital payments enables SMBs to acquire more customers. Digital payments and platforms provide SMBs with access to important markets so they can grow their business. They also help owners manage inventory, workflow, sales and marketing – saving time and cost.
Take the case of smallholder farmers in Cambodia. Digital finance can integrate them into the value chain and vitalize the agriculture sector. Digital solutions such as online payments can be a key instrument allowing farmers to conduct fast, safe, low-cost transactions in small amounts on their mobile phones, facilitating the shift from cash to digital for the trade of their crops.
Furthermore, formal proof of digital transaction receipts provides businesses with a depth and transparency of data, which can be required for them to access ongoing credit and raise funds to maintain strong cash flow. Digitally enabling a small business can have a dramatic impact on a business’ performance.
Financial authorities in Cambodia have warned the public of the threat of fraud and scams. How does Visa balance convenience with security in the future of digital payment?
A challenge that Cambodia faces – along with other countries/territories in the region – is various forms of fraud. Last year, the National Bank of Cambodia urged the public to embrace financial education to safeguard against fraud. We applaud and support measures by authorities to thwart money scams.
To stay ahead of the dynamically shifting threat landscape, we refreshed the Visa Security Roadmap, outlining the steps we are taking in collaboration with our partners to make digital commerce safe for all stakeholders. As a global industry leader in payments, Visa has been a stalwart supporter of a strong digital payments ecosystem in Cambodia, by upskilling the banking sector in innovation and generating efficiencies.
Digital payments are increasingly international. How is Visa facilitating cross-border payments? What impact do you think this will have on Cambodia’s tourist industry?
As Cambodia’s economy emerges, it will need the latest cross-border payment technologies to help it thrive. We have seen Cambodia recently launch bilateral cross-border QR payment links with neighboring Vietnam, Laos and Thailand so that travellers pay in their local currencies.
Late last year, Visa expanded its services so now Cambodian travellers visiting Mainland China can link their Visa cards to accounts in WeChat Pay and Alipay wallets to pay for purchases at millions of stores for dining, transportation, shopping, daily spending and more.
These kinds of innovations that facilitate payments by anyone, anywhere will be a key to unlocking the potential of Cambodia’s tourism industry. Visa is also a leader in business-to-business payment, with its Visa B2B Connect, a multilateral network that delivers B2B cross-border payments that are predictable, secure and cost-effective.
This is a sponsored article from Visa Cambodia.
