Cambodia and Laos have launched the second phase of a cross-border QR-code payments scheme, allowing Lao residents to use the system at around 4.5 million merchants across Cambodia.

Under the first phase in 2023, Cambodian residents using the central bank’s Bakong application have been able to scan local QR codes while visiting Laos.

Cambodia’s Acleda Bank Plc and its subsidiary Acleda Bank Lao Ltd are settlement banks for accepting local-currency payments in Cambodian riel and Lao kip.

The cross-border initiative dates back to a 2022 memorandum of understanding between the two central banks, the National Bank of Cambodia ( NBC ) and the Bank of the Lao PDR ( BOL ).

According to NBC governor Chea Serey, the second phase marks a “crucial advance in enhancing financial connectivity while deepening economic relations between the two countries”.

The launch also “underscores the National Bank of Cambodia’s dedication to collaborating with the government and regional partners to advance digital socio-economic development and support sustainable economic growth”, she says.

Serey jointly oversaw the launch in Phnom Penh on December 19 with BOL governor Bounkham Vorachit.

Acleda expects the system to “improve payments for tourists and companies, strengthen the local currencies of both countries, facilitate payment transactions, and reduce operating costs”.

The bank, which also has a presence in Myanmar, says it currently has more than 0.71 million business partners and 5.38 million mobile subscribers.