Laos, a landlocked country in Southeast Asia, has its own unique currency and financial landscape. As a traveler or a business operating in Laos, it’s essential to understand the intricacies of the country’s currency, payment methods, and banking system. In this comprehensive guide, we will explore the various aspects of currency and payments in Laos, providing you with the knowledge and insights you need to navigate the financial landscape effectively.
Currency in Laos
Official currency of Laos
The official currency of Laos is the Lao Kip (LAK). The Kip is the only legal tender in the country and is used for all domestic transactions. The Kip is divided into 100 smaller units called Att.

Currency of Laos: Kip (Source: Wikipedia.org)
Exchange rates in Laos
The exchange rate of the Lao Kip (LAK) fluctuates daily based on market conditions. The Kip is pegged to a basket of currencies, with the US Dollar (USD) being the primary reference currency. As of [current date], the exchange rate is approximately 1 USD = 11,500 LAK.
Accepted currencies in Laos
While the Lao Kip is the official currency, other major currencies, such as the US Dollar (USD), Thai Baht (THB), and Euro (EUR), are also widely accepted in Laos, especially in tourist areas and major cities. However, it’s important to note that the exchange rates for these foreign currencies may vary and may not be as favorable as local exchange bureaus or banks.
Payment Methods in Laos
Cash transactions in Laos
Cash is the most widely used payment method in Laos. The Lao Kip is the preferred currency for cash transactions, and it’s essential to have a sufficient amount of Kip on hand, especially when traveling to rural areas or smaller towns. Many businesses, particularly smaller vendors and street stalls, only accept cash payments.
Credit and debit cards usage in Laos
The use of credit and debit cards is gradually becoming more widespread in Laos, especially in major cities and tourist hubs. However, the acceptance of cards is still relatively limited compared to other Southeast Asian countries. Visa and Mastercard are the most widely accepted cards, while American Express and other less common cards may not be as widely accepted.
Mobile payment options in Laos
Mobile payment solutions are slowly gaining traction in Laos, with several local and international providers offering mobile wallet and payment services. These include the popular Lao mobile payment app called LaoMoney, as well as international options like AliPay and WeChat Pay. However, the adoption of mobile payments is still relatively low compared to cash and card transactions.
Banking System in Laos
Overview of banking system in Laos

Source: Wikipedia.org
The banking system in Laos is still developing, with the central bank, the Bank of the Lao PDR, overseeing the country’s financial sector. There are several commercial banks operating in Laos, including both state-owned and private banks, as well as a growing number of microfinance institutions.
Opening a bank account in Laos
Opening a bank account in Laos as a foreigner can be a relatively straightforward process, but it may vary depending on the specific bank and your residency status. Generally, you will need to provide a valid passport, proof of address, and possibly other supporting documents. It’s advisable to research and compare the services and fees of different banks before opening an account.
Online banking services in Laos
Online banking services are gradually becoming more accessible in Laos, with several major banks offering internet and mobile banking platforms. These services allow customers to check account balances, transfer funds, and in some cases, make bill payments. However, the availability and functionality of online banking may still be limited compared to more developed financial markets.
Foreign Exchange in Laos
Foreign exchange regulations in Laos
Laos has relatively relaxed foreign exchange regulations, allowing both residents and non-residents to freely exchange currencies. However, it’s important to note that the export and import of Lao Kip is restricted, and travelers are advised to exchange any remaining Kip before leaving the country.
Where to exchange currency in Laos
There are several options for exchanging currency in Laos, including:
- Banks: Most commercial banks in Laos offer currency exchange services, often with competitive rates.
- Authorized money changers: There are numerous authorized currency exchange bureaus, particularly in major cities and tourist areas, that provide currency exchange services.
- Hotels: Many hotels in Laos offer currency exchange, although the rates may not be as favorable as banks or authorized money changers.
Tips for exchanging currency in Laos
When exchanging currency in Laos, it’s important to:
- Compare exchange rates from different providers to ensure you get the best value.
- Beware of unofficial or unlicensed currency exchangers, as they may offer poor rates or even engage in fraudulent activities.
- Avoid exchanging currency at the airport, as the rates are often less favorable than other options.
- Carry a variety of currencies, as some businesses may prefer to accept US Dollars or Thai Baht over the Lao Kip.
ATMs in Laos
Availability of ATMs in Laos
ATM availability in Laos has improved in recent years, with a growing network of ATMs located in major cities and tourist hubs. However, the coverage in rural areas may still be limited. It’s recommended to have a backup plan, such as carrying sufficient cash, when traveling to remote parts of the country.
ATM fees and charges in Laos
ATM fees and charges in Laos can vary depending on the bank and the type of card you are using. Typically, there may be a withdrawal fee, as well as a currency conversion fee if you are using a foreign card. It’s advisable to check with your bank or card issuer about the applicable fees before traveling to Laos.
Tips for using ATMs in Laos
When using ATMs in Laos, it’s important to:
- Be aware of your daily withdrawal limits, both from your home bank and the local ATM network.
- Inspect the ATM for any signs of tampering or skimming devices before use.
- Avoid using ATMs in isolated or poorly lit areas, as they may be more vulnerable to criminal activities.
- Keep your card and PIN safe, and be alert to your surroundings when withdrawing cash.
Digital Wallets in Laos

Popular digital wallet options in Laos
While the adoption of digital wallets in Laos is still relatively low compared to other Southeast Asian countries, there are a few popular options available, including:
- U-Money: A domestic mobile payment app developed by the Star Telecom (Unitel).
- AliPay: The mobile payment app from the Chinese e-commerce giant Alibaba, which is widely accepted by some merchants in Laos.
- WeChat Pay: The mobile payment service from the popular Chinese messaging app WeChat, which is also accepted by some Lao businesses.
Benefits of using digital wallets in Laos
The use of digital wallets in Laos can offer several benefits, such as:
- Convenience: Digital wallets allow for quick and cashless transactions, reducing the need to carry physical cash.
- Reduced currency exchange costs: Some digital wallets may offer better exchange rates or lower fees for cross-border payments.
- Improved security: Digital wallets can provide additional security features, such as biometric authentication, to protect against fraud.
Security measures for digital wallets in Laos
When using digital wallets in Laos, it’s important to take the following security measures:
- Use strong passwords and enable two-factor authentication to secure your digital wallet.
- Keep your mobile device and digital wallet app updated with the latest security patches.
- Be cautious of public Wi-Fi networks when making mobile payments, as they may be susceptible to eavesdropping or hacking.
- Monitor your digital wallet transactions and report any suspicious activities to your service provider.
Cross-border Payments in Laos
International money transfer services in Laos
There are several international money transfer services available in Laos, including global providers like Western Union, MoneyGram, and TransferWise. These services allow you to send and receive money across international borders, which can be particularly useful for businesses or individuals with financial obligations or investments outside of Laos.
Fees and charges for cross-border payments in Laos
The fees and charges for cross-border payments in Laos can vary depending on the service provider, the amount being transferred, and the destination country. It’s important to compare the fees and exchange rates offered by different providers to ensure you are getting the best value for your money.
Tips for making cross-border payments in Laos
When making cross-border payments in Laos, it’s important to:
- Verify the legitimacy and reputation of the money transfer service you are using.
- Understand the fees and charges associated with the transaction, including any hidden fees or exchange rate markups.
- Ensure that you have all the necessary information, such as the recipient’s details, to complete the transaction successfully.
- Monitor the progress of the transfer and follow up with the service provider if there are any issues or delays.
Safety and Security Tips for Currency and Payments
Avoiding counterfeit currency in Laos
Counterfeit Lao Kip notes are not uncommon in Laos, so it’s essential to be vigilant when handling cash. Inspect banknotes for security features, such as watermarks and security threads, and consider using a counterfeit detection pen or app to verify the authenticity of the currency.
Protecting personal information during payment transactions
When making payments in Laos, be mindful of your surroundings and take steps to protect your personal information, such as your credit/debit card details and PIN. Avoid sharing sensitive information in public places, and consider using contactless or mobile payment options whenever possible.
Reporting suspicious activities related to currency and payments
If you encounter any suspicious activities related to currency or payments in Laos, such as potential fraud or scams, report it to the local authorities or your financial institution immediately. This can help protect yourself and others from falling victim to criminal activities.
Mistakes to Avoid
Common pitfalls when exchanging currency in Laos
Some common mistakes to avoid when exchanging currency in Laos include:
- Exchanging money at unauthorized or unlicensed currency exchange shops, which may offer poor rates or even engage in fraudulent activities.
- Exchanging large sums of money all at once, which can make you a target for theft.
- Failing to compare exchange rates and fees from different providers to ensure you’re getting the best value.
Risks of carrying large amounts of cash in Laos
Carrying large amounts of cash in Laos can be risky, as it increases the chances of theft or loss. It’s generally recommended to only carry the minimum amount of cash necessary for your immediate needs and to use alternative payment methods, such as credit/debit cards or mobile wallets, whenever possible.
Ignoring local customs when making payments in Laos
In Laos, it’s important to be aware of local customs and etiquette when making payments. For example, some businesses may prefer to accept payments in US Dollars or Thai Baht over the Lao Kip, and it’s considered polite to handle money and bills with both hands.
Frequently Asked Questions
What is the best way to exchange currency in Laos?
The best way to exchange currency in Laos is typically through authorized money changers or banks, as they offer more favorable exchange rates compared to hotels or the airport. It’s important to compare rates and fees from different providers to ensure you’re getting the best value.
Are credit cards widely accepted in Laos?
The use of credit and debit cards in Laos is gradually increasing, but it is still relatively limited compared to other Southeast Asian countries. Visa and Mastercard are the most widely accepted cards, while American Express and other less common cards may not be as widely accepted. It’s recommended to have a mix of payment options, including cash, when traveling in Laos.
How can I ensure the security of my payments while traveling in Laos?
To ensure the security of your payments in Laos, consider the following tips:
- Avoid carrying large amounts of cash and use alternative payment methods, such as credit/debit cards or mobile wallets, whenever possible.
- Be vigilant when using ATMs and inspect them for any signs of tampering or skimming devices.
- Protect your personal information, such as your card details and PIN, and avoid sharing them in public places.
- Report any suspicious activities or potential fraud to the local authorities or your financial institution.
Conclusion
Understanding the currency and payment landscape in Laos is essential for both travelers and businesses operating in the country. From the official Lao Kip to the various payment methods and the banking system, this comprehensive guide has provided you with the information you need to navigate the financial landscape in Laos effectively. By being aware of the best practices, tips, and potential pitfalls, you can ensure a smooth and secure financial experience during your time in Laos.




