Cambodia is one of the developing countries in Southeast Asia. Currently, the country ranks eight out of Southeast Asian countries.
Accordingly, the country is facing a big issue in poverty. This, accordingly, hinders the progression of the country. Poverty is one of the biggest enemies in many countries, including Cambodia.
To battle poverty, Cambodia believes that investing in fintech will greatly help reduce its rates. Thus, the country has been encouraging investment in fintech in the recent years.
With that being said, local news reported that the technology is still underused and underdeveloped. To overcome this problem, the kingdom faces numerous challenges. Lack of consumers’ awareness, scant funding and investment, and a weak regulations become the challenges.
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With this in mind, the government is advancing its effort to promote investment in fintech. Cambodian kingdom believes that fintech can promote financial inclusion and end poverty bit by bit.
To encourage the plan, the government states important points as follows.
Providing wide payment options
To raise the use of fintech services, the kingdom will introduce that fintech offers numerous payment options to the traditional ones. Fintech payment, in addition, lowers costs and is more effective. With many people use this kind of payment, it is believably to help increase financial inclusion and the economy.
Offering favorable conditions
Cambodia offers favorable conditions for its citizens if they are using fintech services. The offered favorable conditions are related to the use of technology in banking sectors, such as the use of QR codes, e-wallets, and mobile payment. By emphasizing these conditions, the kingdom believes it will raise the usage rates.
Eradicating routine cash payments
Routine cash payment is considerably troublesome. National Bank of Cambodia thinks that this is the cause why many Cambodian adults do not use bank services. Instead, by transforming the way of payment from routine cash payments to bank accounts, it is believed that this will raise the number of people who use bank services.
Building a strong payment infrastructure
A strong payment infrastructure is one way to help increasing economy. Accordingly, Cambodian-owned e-wallet, Pi Pay, is heavily introduced to people. By popularizing its use, people will be more willing to spend their money. In addition, they will be able to buy goods and pay for services easily for people can easily access it through their mobile phones.
By using fintech services, the kingdom believes that people can afford to purchase stuffs easier and faster. This, additionally, will not disturb Cambodians’ hectic schedule. By just tapping their smartphones, people will be able to pay tuition fees, goods, bills, and many more.
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