Kuwait adds 5 new e-payment solutions providers to boost financial innovation

The Kuwaiti banking sector is poised for innovation as five new fintech firms have registered with the country’s central bank to offer electronic payment solutions.

The registration requests of four companies to provide online transaction services, and one company to operate e-payment system services, have been approved according to a press release.

The companies that obtained clearance from the Central Bank of Kuwait include Myfatoorah and Tap Payments, while Payzah and Kashier have been approved for e-payment and settlement systems operations.

Additionally, K-Net has been registered by the central bank to operate digital payment system services.

The CBK stated that this move comes as part of its efforts to promote innovation in the financial sector, enhance online transactions, and regulate operations to facilitate services with the highest levels of efficiency and security.

The apex bank also emphasized the importance of dealing with authorized financial institutions to engage in activities within these fields.

Kuwait’s payment card market is witnessing significant growth, driven by combined efforts between the government and financial institutions to promote online payments, as highlighted in a report titled “Kuwait Cards and Payments: Opportunities and Risks to 2027” by UK-based consultancy firm Global Data.

The report added: “Developing and expanding payment acceptance infrastructure have encouraged consumers to use electronic payments for day-to-day transactions.”

Global Data reports explained that the continued expansion of e-commerce, the increasing adoption of contactless payments, and the emergence of digital-only banks are among the primary drivers fueling the growth of electronic payments.

“The availability of alternative payment solutions such as Google Pay, Apple Pay, and Samsung Pay (as well as innovative payment solutions such as biometric cards) will also boost adoption of electronic payments,” the firm added.

In recent years, Kuwait has seen the introduction of major digital wallet platforms, providing consumers with convenient payment solutions.

In March 2023, Google Pay partnered with Mastercard to debut in Kuwait, enabling Mastercard debit and credit card holders to conduct contactless payments both in-store and online using their Android smartphones.

This development followed Apple Pay’s entry into the Kuwaiti market in December 2022, offering users options for making in-store, in-app, and online payments.