Indian tourists can now make instant digital payments in Cambodia using their Unified Payments Interface (UPI) applications following a partnership between NPCI International Payments Limited (NIPL) and ACLEDA Bank. The collaboration enables users to scan Cambodia’s national KHQR codes at more than 4.5 million merchant locations across the country. With this launch, Cambodia has officially become the ninth international destination to accept India’s indigenous real-time payment network.
UPI Integration and the KHQR Network
The transaction framework connects India’s real-time payment system with Cambodia’s national retail payment infrastructure. The National Bank of Cambodia introduced the KHQR standard in July 2022 to unify QR-based payments under a single format. ACLEDA Bank, which operates as a leading commercial bank in Cambodia, acts as the primary sponsoring bank for this cross-border payment initiative.
The implementation of this cross-border payment facility is structured in two distinct phases:
| Phase | Direction of Payments | Target Audience | Status |
|---|---|---|---|
| Phase I | India to Cambodia | Indian travellers scanning KHQR codes in Cambodia | Operational (Launched June 2026) |
| Phase II | Cambodia to India | Cambodian citizens scanning UPI QR codes in India | Under development |
In the initial phase, Indian visitors can pay at over 4.5 million retail outlets, restaurants, hotels, and tourist attractions across Cambodia. Once Phase II is implemented, the corridor will become fully bidirectional, allowing Cambodian citizens to utilize their domestic banking and e-wallet applications to make purchases at UPI-enabled merchants in India. This two-way corridor will significantly reduce currency exchange costs and transaction friction for both countries.
Global Footprint and Expansion of UPI
Cambodia’s integration marks a major milestone in the internationalization of India’s retail payment system. With this launch, Cambodia joins eight other nations that accept merchant payments or peer-to-peer transfers through the UPI network. The integration of UPI across these countries relies on bilateral collaborations between local authorities and India’s international payment arm.
The list of countries accepting UPI payments includes:
- Bhutan: The first country to adopt UPI standards for its national QR deployment and the first to accept payments through the BHIM app.
- Singapore: The first nation to establish a real-time link connecting UPI with its domestic payment system, PayNow, for instant bank transfers.
- United Arab Emirates: Enabled merchant payments through partnerships with local payment networks, facilitating transactions for Indian workers and tourists.
- France: Allowed UPI payments starting at landmark locations like the Eiffel Tower to accommodate high tourist volumes.
- Mauritius and Sri Lanka: Launched UPI services simultaneously to offer digital payment services to travellers.
- Nepal: Adopted the UPI network to digitize its payment ecosystem and facilitate cross-border transactions.
- Qatar: Integrated UPI acceptance through local payment gateways to support Indian visitors.
This expanding international network highlights the global potential of India’s digital public infrastructure. By deploying these solutions globally, India seeks to simplify cross-border trade, support the tourism sector, and offer cost-effective remittance channels.
Institutional Framework: NPCI, NIPL, and UPI
The domestic development and international promotion of India’s digital payment ecosystem involve distinct institutional bodies working under the guidance of financial regulators:
- National Payments Corporation of India: NPCI was established in December 2008 as a not-for-profit company under the provisions of the Payment and Settlement Systems Act, 2007. Initiated by the Reserve Bank of India and the Indian Banks’ Association, NPCI acts as an umbrella organization for retail payment systems in India. It manages key digital platforms, including the Unified Payments Interface, which was launched in 2016 to enable instant real-time bank transfers through mobile applications.
- NPCI International Payments Limited: Incorporated in April 2020, NIPL is a wholly-owned subsidiary of NPCI. It focuses on export-oriented initiatives, working with overseas partners to deploy UPI and RuPay card services in foreign markets.
- ACLEDA Bank Plc: Established originally as a non-governmental organization in January 1993, ACLEDA received its commercial banking license from the National Bank of Cambodia in December 2003. Headquartered in Phnom Penh, it serves as a critical link for cross-border transactions within Cambodia’s financial market.
Key Takeaways
- Cambodia has integrated India’s Unified Payments Interface (UPI) system, becoming the ninth international destination to accept UPI payments.
- The cross-border payment corridor is established through a partnership between NPCI International Payments Limited and Cambodia’s ACLEDA Bank Plc.
- The transactions rely on Cambodia’s national KHQR code standard, which was introduced by the National Bank of Cambodia in July 2022.
- Indian travellers can use UPI applications to make payments at over 4.5 million merchant locations across Cambodia during the initial phase.
- The National Payments Corporation of India (NPCI) was incorporated in December 2008 under the Payment and Settlement Systems Act, 2007 as a not-for-profit company.
- NPCI International Payments Limited was established in April 2020 as a wholly-owned subsidiary of NPCI to drive the global adoption of UPI and RuPay.
