bankingciooutlook

Cashless Payment

Banking CIO Outlook | Monday, October 25, 2021

Mobile wallets are becoming immensely popular and MENA is expected to process around 139 billion individual noncash transactions in 2022.

FREMONT, CA: POS and e-commerce transactions grew by 65% in Bahrain, reaching a total value of 744 million USD. According to the new report by the central bank of Bahrain (CBB), there were over 53 million digital payments in the first half of this year. The country is currently experiencing an increase in online and digital payment as it is accelerating its transaction towards cashless modes.

The lockdowns caused by the pandemic greatly influenced Bahrain's Digital economy. Mobile wallet applications are becoming more and more popular, and MENA is expected to process around 139 billion individual noncash transactions in 2022, which was 90 billion 5 years ago. Bahrain is at the forefront of the revolution in paperless finance, owing to its rapidly developing fintech sector. The country is home to some of the world's most advanced digital infrastructure. It has produced several emerging startups that are changing the status quo of the country’s digital economy. Even before the pandemic hit, the Gulf Cooperation Council (GCC) began embracing mobile banking and digital payments. Bahrain anticipated the trend and carried out the required technological development. The country has a track record of flexibility in regulating its digital economy and developing forward-thinking regulatory frameworks in a way that enables its financial sectors to flourish. Bahrain issued open banking rules followed by a framework with governance and data sharing guidelines back in 2020.  The Bahrain Economic Development Board (EDB), an investment promotion agency, has the overall responsibility of attracting investment into the country and supporting initiatives that improve investment climates. EDB collaborates with the government to ensure that the country's investment climate remains attractive, the region’s key strengths are communicated to stakeholders, and opportunities exist for further economic growth and investment.

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