On 4 January 2024, Bank of Lao PDR ("BOL") issued Notice No.05/BOL titled "Notice on the Use of Unauthorised Foreign Payment Instruments and Payment Channels" ("Notice") informing hotels, guesthouses, restaurants, shops, operators of service facilities, tourists, citizens, traders, employees, soldiers and police throughout the country that there is currently a group of people bringing in foreign payment instruments and channels in Lao PDR via quick response (QR) codes and payment data readers (Point of Sale/ Electronic Data Capture machine) without the permission of relevant authorities. These people provide services to foreigners or tourists in the country and receive payment for such services (e.g. through Alipay and WeChat Pay) without going through the financial system of Lao PDR.
To address this, BOL has given directives as follows:
Service Providers
Service providers who are individuals or legal entities such as hotels, guesthouses, restaurants, shops, service operators and tourists who use unauthorised payment instruments and channels violate the following laws and decision:
- Law on Payment System No. 32/SPC, dated 7 November 2017;
- Law on Foreign Exchange Management (amended) No. 15/NA, dated 7 July 2022; and
- Decision on the Payment Service Provision No. 288/BOL, dated 17 March 2020.
Those who are still receiving payments with tools or payment channels that do not go through banks or legal entities authorised by BOL (especially Alipay and WeChat Pay) should cease utilising such payment tools or channels. They are directed to receive payments through banks or authorised legal entities within three months from the date of issuance of the Notice.
Individual Service Users
Individual service users such as parents, traders, employees, soldiers and police, foreigners or tourists who need to pay for goods and services through electronic tools should use the services of payment service providers authorised by BOL.
