NPCI international launches cross border UPI payments in Cambodia

In a significant step towards expanding India's digital payment footprint globally, NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India (NPCI), has partnered with ACLEDA Bank Plc. to launch Unified Payments Interface (UPI) acceptance in Cambodia, according to an official statement issued on Wednesday.The cross-border payment facility was formally launched during a ceremony in Phnom Penh attended by Chea Serey, Governor of the National Bank of Cambodia, along with senior representatives from the Reserve Bank of India (RBI) and other stakeholders.
The launch marks the successful completion of Phase 1 of the cross-border QR payment linkage between India and Cambodia through Bakong's KHQR, Cambodia's national QR code system. The initiative is expected to strengthen financial connectivity between the two countries and enhance convenience for travellers and businesses alike.Under the first phase, Indian travellers visiting Cambodia can make seamless digital payments by scanning KHQR codes at more than 4.5 million merchant locations across the country using UPI-enabled applications. The move eliminates the need for currency exchange and cash transactions, allowing users to pay directly through familiar payment platforms.
According to NIPL, the partnership has been designed as a scalable and interoperable payment corridor. While the initial phase focuses on facilitating payments by Indian visitors in Cambodia, the next stage will establish a fully bi-directional payment network.Once Phase 2 is implemented, Cambodian travellers visiting India will be able to use their domestic banking and digital payment applications linked to Bakong's KHQR system to scan and pay at millions of UPI QR code-enabled merchant outlets across India.
The initiative is expected to transform cross-border retail payments and provide greater ease of travel between the two nations. By enabling real-time, secure and low-cost digital transactions, the payment corridor reduces reliance on cash and minimizes foreign exchange-related inconveniences for travellers.The partnership is also expected to benefit Cambodian merchants by giving them access to a large and rapidly growing Indian tourist base. Increased digital payment acceptance could drive higher transaction volumes while reducing the costs and operational challenges associated with handling cash. Merchants will also benefit from secure and instant transaction settlements.
The launch further strengthens India's efforts to internationalize UPI, one of the world's fastest-growing real-time payment systems. UPI is already operational in eight countries — Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar and Sri Lanka — enabling Indian users to make seamless payments abroad through their existing payment applications.