Young Cambodians Adopt Digital Wallets, Shift to Cashless Lifestyle

Cambodia’s digital transformation is not just a trend; it’s a tidal wave in the global financial landscape. At the centre of this change sits Bakong, the central bank-backed digital wallet system.

As of now, the Bakong payment service has officially integrated with 69 financial institutions, serving more than 30 million users, according to Sok Chan, Financial Inclusion Head of the Association of Banks in Cambodia (ABC).

Adoption of the KHQR code has also surged, with 4.9 million merchant accounts now registered. Meanwhile, e-wallet accounts have grown to approximately 22.9 million, reflecting the widespread adoption of digital finance, he said.

Transactions in USD rose by 133 percent, while riel transactions skyrocketed 334 percent, showing a strong shift in consumer behaviour, as of the first quarter of 2025, the National Bank of Cambodia (NBC) stated.

This growth, which is driven by Cambodia’s young and tech-savvy population, saw 25.3 million active mobile connections, equivalent to 143 percent of the population, and 10.8 million internet users early this year, NBC added, noting that digital access is becoming a lifestyle now.

More than just a wallet

With 30 million wallets now in circulation - 1.7 times the country’s population - and 4.5 million merchants accepting payments via the standardised Bakong KHQR code, cashless transactions have become seamless.​

Phnom Penh university student, Phan Sophea, 19, started using a digital wallet daily two years ago when she landed her first job. She used it to buy food, pay for transport and to send money. Sophea noted that compared to cash, digital wallets are convenient. “We just need to have a phone, scan and pay. We don't need to carry a real wallet.”

While there may be the risk of theft with physical wallets, e-wallets are secure and enable users to recover their money if they lose their phone. Like many other people her age, Sophea uses a digital wallet at least five times a day for payment.

However, she is concerned about the challenges of transferring money online, as the transaction does not reach the recipient’s account immediately at times.

Paying for everyday life

Sovan Deth, 24, who graduated with a degree in business management, started using digital wallets in 2019 when he moved to Phnom Penh. He uses it three times a day, mostly to buy breakfast, lunch and coffee.

“Everyone has digital wallets; they’re easy and secure,” he noted, referring to the increasing number of users of the payment form, which offer convenience and security among his friends.

Deth uses the Wing digital wallet and appreciates its functionality, as well as the sense of security having it on his phone.

While digital wallets offer wide and virtual payments, he has experienced minor disruptions, especially when internet connectivity is weak. Transfers via Bakong’s KHQR code can be slow sometimes, particularly for cross-bank transactions.

Deth also believes the use of cash remains necessary in some cases, especially for the purchase of low-priced goods. Although, he added that this “necessity is diminishing”.

Make business easier

Prao Sophea, 25, stall manager for Cambodia Bagels in the Connexion building, echoed similar sentiments. She described digital wallets as a fast and convenient tool that has improved her business’s financial management.

“It’s easy; just scan and receive money. There’s no need to exchange cash, which takes time,” she stated.

Beyond convenience, digital wallets help her track expenses and maintain records. “In a digital wallet, when we spend, there is a transaction record,” Sophea said, adding that she does not have to worry about any information going missing.

She observed that most of her young customers prefer digital payments, embracing a cashless lifestyle.

Young Cambodians Drive Digital Banking Evolution

Cambodia’s digital banking landscape is being reshaped by a surge of young users embracing mobile financial services. Today, over 20% of Wing Bank’s mobile app users are youth under the age of 25. From January 2024 to September 2025, the number of young users grew by more than 160%. Most of these users rely on the app for fund transfers, phone top-ups, and bill payments.

This growing user base is supported by over 100 solutions available on Wing Bank’s mobile app, while more than 200,000 businesses across Cambodia — from cafés and restaurants to marts and street vendors — rely on the platform to process payments. With the integration of Bakong, these merchants can now accept payments from other bank accounts smoothly and without disruption.

To meet the evolving needs of its users, the bank recently introduced Miniapp, a feature designed to bring lifestyle services directly into the banking experience. Users can now book movie tickets, bus rides, and access major events—all without leaving the app or downloading additional platforms.

“With Miniapp, we’ve transformed the app into more than just a banking tool—it’s now a lifestyle gateway,” said Vantheth Hong, Open Banking Director at Wing Digital. “Our customers can manage their finances and access entertainment with just a few taps. It’s all about speed, security, and simplicity.”

Banking sector pushes digital inclusion

ABC’s Chan said NBC’s efforts to modernise have significantly boosted digital wallet adoption, especially among youth.

Partnerships between banks and tech firms are accelerating the growth of e-wallets, making digital payments easy, fast and affordable. This transformation is not only reshaping consumer habits, but also enhancing Cambodia’s financial ecosystem.

“The National Bank is planning to launch the Youth Bakong programme, aimed at minors who don’t have an ID card yet. They’ll be able to register using their student ID to access digital payment services,” Chan said.

The development of interconnected digital payment systems linking banks and financial institutions has made it more convenient for Cambodians, especially youth, to make purchases and manage their spending. This shift is also helping to promote the use of the riel.

However, the association cautioned that with the rise of digital payments comes increased risk, particularly online fraud and cyber threats.

To address these challenges, they are collaborating with stakeholders, including the media, to promote digital literacy. Through targeted financial education campaigns in both urban and rural areas, they aim to equip users with the knowledge to protect themselves online, Chan said.

ABC urged users to be vigilant and cautious when making digital transactions. ”To avoid being hacked, users should never share their identification number, birthdate, password, or personal identification number (PIN) and personal information on social media. Always answer security questions posed by their financial institution for identity verification,” he said.