The rise of Digital Financial Services (DFS) has sparked debates on whether cash will disappear, especially in developing economies like Cambodia, where agent networks and mobile money play a crucial role in financial inclusion. While digital payments are growing, cash remains king—particularly for low-income populations, informal workers, and rural communities.

At Khat Alhayat, we recognize that both cash and digital finance are essential for Cambodia’s economic growth. Here’s why:

1. Cash is Still Preferred for Trust & Convenience

• 80% of Cambodia’s workforce is informal, relying on cash wages.

• Many rural users still distrust digital-only systems and prefer face-to-agent transactions.

• During crises (like COVID-19), cash demand spikes as a secure store of value.

2. Digital Finance is Growing, But Not Replacing Cash

• Mobile money (WING, ACLEDA Unity, Bakong) facilitates domestic transfers & bill payments, but cash-in/cash-out (CICO) transactions remain dominant.

• Agent networks are expanding—not shrinking—as they adapt by offering multi-service hubs (banking, remittances, e-commerce).

3. The Role of Agent Networks in Cambodia

Cambodia’s 40,000+ mobile money agents serve as the bridge between cash and digital finance by:
Enabling cash-to-digital conversions for the unbanked.
Supporting low-value transactions (farmers, small vendors).
Providing trusted human interaction for first-time digital users.

Khat Alhayat’s Approach: Bridging Cash & Digital

As a leading financial services provider in Cambodia, we support both traditional and digital financial solutions:

1. SME & Agri-Business Financing

• Cash-friendly loan disbursements for informal businesses.

• Digital repayment options for convenience.

2. Financial Inclusion Initiatives

• Partnering with MFIs & mobile money providers to expand rural access.

• Supporting agent network development for last-mile financial services.

3. Sustainable Digital Transformation

• Educating businesses on hybrid (cash + digital) financial models.

• Advocating for smart regulations that balance innovation & consumer protection.

The Future: A Hybrid Financial Ecosystem

While digital finance will continue growing, cash will remain vital for:
Informal sector workers (61% of Cambodia’s economy).
Rural populations with limited smartphone/internet access.
High-trust transactions where digital literacy is low.

Khat Alhayat’s Vision:
A financial system where cash and digital coexist, ensuring no one is left behind.