Cross-Border QR Payments in Southeast Asia: A New Era of Financial Integration

Southeast Asian countries, including Vietnam, Cambodia, Laos, and Thailand, have made significant strides toward financial integration by launching cross-border QR payment systems. Each country has devised its own QR payment system: Cambodia's KHQR, Laos's LAO QR, Vietnam's VietQR, and Thailand's PromptPay QR, catering to their national currencies.

In a bid to promote digital payments and encourage the use of national currencies, Vietnam and Cambodia inaugurated a bilateral QR payment link in December 2023. Drawing inspiration from this, Laos and Cambodia, as well as Thailand and Laos, have formed partnerships to establish their own cross-border QR payment systems.

These systems have streamlined cross-border payments, with a potential to give a significant boost to regional tourism. The ease of transactions they offer eliminates the need for currency exchange, making travel more convenient for tourists.

Moreover, QR payment systems also bring efficiency to merchants and businesses by reducing the costs and complexities associated with currency exchange. This not only drives economic growth but also fosters the use of local currencies.

Beyond facilitating transactions, these systems contribute to financial inclusion and economic stability. They reduce cash dependence, enhance transaction security, and allow a broader population segment to participate in the formal economy. The integration of these QR payment systems with mobile banking applications further broadens their reach, enabling users to conduct secure transactions using their mobile devices.

The success and impact of these systems are largely dependent on their widespread adoption. In this context, Cambodia leads, with approximately 1.8 million merchants accepting payments via the KHQR system. Similarly, a significant number of merchants in Vietnam, Laos, and Thailand have also embraced these QR code systems, marking a shift towards a cashless economy.