The National Bank of Cambodia (NBC) and the Central Bank of Timor Leste (BCTL) have signed a Memorandum of Understanding to strengthen cooperation on digital payments, financial innovation and cross border payment connectivity.
The agreement was signed in Dili, Timor Leste, by NBC Governor Chea Serey and BCTL Governor Helder Lopes during the launch of Timor Leste’s fast payment system. The cooperation is also intended to facilitate transactions in the two countries’ domestic currencies, potentially supporting trade and investment between Cambodia and Timor Leste.
Key Facts
- Agreement: Memorandum of Understanding between NBC and BCTL
- Main areas: Digital payments, financial innovation and financial connectivity
- Location: Dili, Timor Leste
- Signatories: Chea Serey and Helder Lopes
- Purpose: Strengthen digital payment cooperation and cross border connectivity
- Additional objective: Facilitate transactions in Cambodian and Timor Leste domestic currencies
- Cambodia’s payment platform: Bakong
- Bakong launch: October 2020
- Reported Bakong accounts: 38 million
- Reported merchant locations: Approximately 4.5 million
Cambodia and Timor Leste Establish New Digital Payment Framework
The new agreement creates a formal framework for the two central banks to work more closely on digital payment systems and financial technology.
According to the National Bank of Cambodia, the MoU is designed to strengthen cooperation in digital payments, financial innovation and financial connectivity.
The signing took place during an important moment for Timor Leste’s digital financial infrastructure, as the country launched its fast payment system.
The ceremony was presided over by José Ramos Horta, President of Timor Leste, and Kay Rala Xanana Gusmão, Prime Minister of Timor Leste.
The agreement could provide a foundation for deeper technical and institutional cooperation as both countries develop their digital financial systems.
Domestic Currency Settlement Could Support Trade
One of the notable elements of the cooperation is the intention to facilitate settlement of transactions using the domestic currencies of Cambodia and Timor Leste.
For businesses, more convenient cross border payment arrangements can be important because payment efficiency is directly connected to the cost and ease of conducting international trade.
If the two financial systems become more closely connected, businesses and consumers could potentially benefit from more efficient payment channels for transactions between the two markets.
The latest agreement does not, however, specify a launch date or detailed operational structure for any future payment linkage. Those details would need to be established through subsequent cooperation between the two central banks.
Cambodia Builds on Bakong’s Regional Expansion
Cambodia enters this cooperation with considerable experience in developing interoperable digital payments through the NBC’s Bakong system.
Launched in October 2020, Bakong enables retail customers to transfer funds and make payments through participating banks, financial institutions and payment service providers.
The NBC has subsequently expanded the system’s international connectivity, including connections with major payment platforms such as China’s Alipay and India’s Unified Payments Interface (UPI).
Cambodia’s cross border QR payment network is also connected with several regional and international markets, including Thailand, Laos, Vietnam, Malaysia, South Korea, China and Japan.
This experience provides Cambodia with an established foundation as it explores further financial connectivity with Timor Leste.
Digital Payments Are Becoming Part of Cambodia’s Trade Infrastructure
The latest agreement comes as Cambodia continues to expand digital systems supporting trade and business.
The country’s broader digital trade strategy increasingly includes payment infrastructure alongside telecommunications, logistics, data systems, cybersecurity and digital platforms. Angkor Times recently reported that Cambodia is seeking stronger private sector participation as it develops its digital trade ecosystem toward 2030.
Digital payments are particularly important because online commerce cannot operate efficiently without reliable mechanisms for customers and businesses to transfer money.
Cambodia is also digitising other parts of its trade infrastructure. Its electronic Certificate of Origin system, for example, allows exporters and manufacturers to prepare, submit and pay for applications online, supporting the broader move toward paperless trade.
Annual Bilateral Cooperation Continues
The latest meeting was not the first formal financial cooperation between the two institutions.
The NBC and BCTL signed an earlier MoU in Cambodia in 2024, establishing a framework for cooperation and an arrangement for annual bilateral meetings, with the two countries taking turns hosting.
During the latest bilateral meeting in Dili, the central banks agreed to further strengthen financial cooperation and discussed priorities for future collaboration.
The new agreement therefore builds on an existing institutional relationship rather than establishing cooperation from scratch.
Bakong’s Growing Scale
According to an NBC report cited in the source, Bakong currently has 38 million user accounts and is accepted at approximately 4.5 million merchant locations.
The scale illustrates how digital payments have moved beyond a niche financial technology service and become an important part of Cambodia’s everyday payment ecosystem.
The NBC has said its fintech initiatives are aimed at strengthening formal financial adoption, encouraging greater use of the riel and integrating Cambodia’s domestic economy with regional and global markets.
Cambodia’s expanding QR payment network is particularly relevant to tourism, retail and cross border commerce, where consumers increasingly expect familiar and convenient digital payment options.
What This Could Mean for Cambodia and Timor Leste?
For businesses, stronger payment connectivity could eventually reduce friction in transactions between Cambodia and Timor Leste.
For consumers, interoperable digital payment systems could make cross border payments more convenient if the two countries eventually connect their systems operationally.
For policymakers, cooperation between the central banks could also provide an opportunity to exchange experience in areas such as fintech regulation, payment infrastructure and financial innovation.
However, the MoU itself establishes a framework for cooperation. It does not yet confirm that Cambodian and Timor Leste payment systems are directly interoperable or that consumers can immediately use Bakong for payments in Timor Leste.
Data Table
| Indicator | Figure / Detail |
|---|---|
| Cambodia central bank | National Bank of Cambodia |
| Timor Leste central bank | Central Bank of Timor Leste |
| Agreement | Memorandum of Understanding |
| Main focus | Digital payments and financial innovation |
| Signing location | Dili, Timor Leste |
| Previous cooperation framework | MoU signed in Cambodia in 2024 |
| Bakong launched | October 2020 |
| Bakong user accounts | 38 million |
| Bakong merchant locations | Approximately 4.5 million |
| Cambodia QR connectivity | Thailand, Laos, Vietnam, Malaysia, South Korea, China and Japan |
Angkor Times Analysis
From a business perspective, the NBC and BCTL agreement is significant because payment connectivity is becoming an increasingly important component of regional economic integration. Trade agreements and physical connectivity can reduce barriers between markets, but businesses also need efficient ways to settle transactions.
Cambodia’s experience with Bakong gives the country a useful platform from which to deepen digital financial cooperation. The bigger opportunity will come if technical cooperation eventually develops into practical interoperability that allows businesses and consumers to make cross border payments more easily.
The agreement also fits into Cambodia’s broader digital economy strategy. As the country works to expand digital trade, e commerce and regional connectivity, payment systems will increasingly need to work across borders rather than operate only within national markets. ASEAN is moving in the same direction, with digital payments and interoperability identified as important elements of its broader digital economy integration agenda.
Sources
- National Bank of Cambodia statement and information
Frequently Asked Questions
What did Cambodia and Timor Leste agree to?
The National Bank of Cambodia and Central Bank of Timor Leste signed an MoU to strengthen cooperation on digital payments, financial innovation and cross border financial connectivity.
Where was the agreement signed?
The agreement was signed in Dili, Timor Leste.
Who signed the MoU?
It was signed by NBC Governor Chea Serey and Central Bank of Timor Leste Governor Helder Lopes.
Could the agreement make payments between Cambodia and Timor Leste easier?
Potentially, yes. The agreement specifically aims to strengthen cross border payment connectivity and facilitate settlement in the two countries’ domestic currencies. However, the source does not confirm a specific operational payment linkage or launch date.
What is Bakong?
Bakong is Cambodia’s digital payment system developed by the National Bank of Cambodia. It was launched in October 2020 and enables transfers and payments through participating financial institutions.
How large is the Bakong network?
According to the NBC information cited in the source, Bakong has 38 million user accounts and is accepted at approximately 4.5 million merchant locations.
Which countries are connected to Cambodia’s cross border QR payment system?
The source identifies Thailand, Laos, Vietnam, Malaysia, South Korea, China and Japan among the markets connected to Cambodia’s cross border QR payment system.
Why is digital payment connectivity important for trade?
Cross border payment connectivity can make it easier for businesses and consumers to settle transactions, potentially reducing payment friction and supporting trade, investment and tourism between countries.