Phnom Penh, August 7, 2019 – The Association of Banks in Cambodia (ABC), has signed agreements with Visa, the world’s leader in digital payments, and ACLEDA Bank Plc., to help the nation’s interbank network Cambodian Shared Switch (CSS) accelerate the migration of magnetic stripe payment cards to secure EMV chip technology.
The agreements provide members of the Association of Banks in Cambodia with access to Visa’s EMV chip standards and the Application Identifier (AID) from ACLEDA Bank, for domestic chip-enabled cards, ATMs and point-of-sale terminals to ensure they meet the internationally recognized chip-standards.
Dr In Channy, Chairman of the Association of Banks in Cambodia, said: “Upon completion of the migration, local banks and businesses will be highly protected against counterfeit fraud, and less likely to be a target for skimming and data breach incidents. By adopting Visa’s EMV chip standards we will be able to strengthen domestic transactions and our network of ATMs, providing greater security to the delivery of financial services across the country.”
Monika Chum, Visa Country Manager for Cambodia, said: “Trust underpins all transactions. As digital payments grow in the country we are committed to ensuring Cambodians are protected whenever and wherever they transact. Making Visa’s EMV chip standards available to local banks and Microfinance Deposit Taking Institutes will benefit the entire industry, as we work together to maintain the highest security standards available.”
EMV cards contain an embedded microprocessor which creates a new transaction code every time the card is used. This advanced anti-counterfeit fraud solution provides strong security features previously not possible with traditional magnetic stripe cards.
Mr. Kimty Kormoly, Deputy Director General of Central Bank, National Bank of Cambodia, said: “The collaboration between The Association of Banks in Cambodia and Visa today is another step forward for enhancing payment interoperability and security which is very important in promoting efficiency and safety in Cambodia’s payment system.”
Cambodia continues to experience robust growth in digital payments and there is growing appetite among consumers to adopt new payment methods. According to Visa’s Consumer Payment Attitudes study a third of Cambodians expect digital payments to grow in popularity due to their convenience and security compared to cash, while 54 percent of Cambodians believe the economy can go fully cashless within the next seven years .
In addition to assisting local banks with the implementation of the EMV chip standards, Visa constantly develops strategies designed to approach risk management and innovation holistically. This involves fraud prevention measures, consumer protection, threat and fraud detection and response, and partnerships that allow Visa to build on the security introduced by technical innovations such as the EMV chip.
Visa, together with its financial institution and merchant partners, has consistently invested in growing digital payments in Cambodia. This has included growing card issuance and acceptance, educating consumers and merchants on the benefits of electronic payments, and introducing new payment innovations such as QR payments.
The EMV chip standard, a global industry standard for a secure payment transaction, is developed by EMVCo – which is collectively owned by American Express, Discover, JCB, MasterCard, UnionPay and Visa.