Kuwait Sees Surge in Digital Payments
Kuwait City, Kuwait: Kuwaiti citizens are increasingly embracing digital banking solutions, with a significant rise in online transactions reported for the first quarter of 2024.
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This trend reflects a broader shift towards digitalization within the country’s banking sector, with institutions actively implementing new technologies.
According to official figures, a staggering 78% of all banking operations during the first quarter were conducted digitally, amounting to a total of 9.257 billion Kuwaiti dinars out of 11.88 billion dinars. This represents a significant increase in online activity compared to the same period last year.
Domestic websites saw the largest share of digital spending, with transactions reaching 4.763 billion dinars, marking a 14.6% growth year-over-year. This trend highlights the growing popularity of online banking platforms within Kuwait.
The report also indicates a decline in traditional cash withdrawals. Compared to Q1 2023, cash withdrawals through ATMs dropped by 4.6%, totaling only 124 million dinars during the first quarter of this year.
“The surge in digital services can be attributed to their enhanced security, user-friendliness, and diverse offerings,” explains a representative from the Kuwaiti banking sector. “This shift in consumer behavior is leading to a continuous rise in electronic payments, while cash withdrawals become less common.”
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The report further highlights the role of e-commerce in driving digitalization. The proliferation of secure and well-regulated e-commerce platforms, licensed by the Central Bank of Kuwait, has provided consumers with greater choice and convenience. This has further fueled the move away from traditional bank card usage and towards comprehensive digital banking solutions, reported Arab Times.
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