Digital Payment Development and Banking Sector Transformation in Cambodia: The Case of the Bakong System

This thesis examines the development of digital payments in Cambodia and their relationship with the transformation of the Cambodian banking sector, focusing on the Bakong system introduced by the National Bank of Cambodia. Bakong is analyzed as a central bank-led digital payment infrastructure designed to improve interoperability, payment efficiency, financial inclusion, and the digitalization of financial services. The thesis uses a descriptive and analytical approach based mainly on secondary data from the National Bank of Cambodia and other institutional sources. The analysis focuses on the growth of Bakong users, transaction volume and value, participation of financial institutions, merchant adoption through KHQR, and comparison with selected traditional payment systems such as the National Clearing System. The findings show that Bakong has expanded significantly since its launch in 2020. Registered users, transaction activity, institutional participation, and KHQR merchant adoption all increased substantially between 2020 and 2024. These developments indicate that Bakong has become an important part of Cambodia’s payment infrastructure and has supported a more integrated, digital, and interoperable payment environment. The thesis concludes that the development of Bakong has been associated with broader banking sector transformation in Cambodia, especially through stronger payment interoperability, wider use of digital payment channels, greater merchant acceptance, and improved access to formal digital financial services. However, the thesis does not claim that Bakong alone caused all changes in the banking sector. Instead, Bakong is understood as an important supporting factor and indicator of Cambodia’s broader financial digitalization.