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MANAMA, Bahrain, Sept. 7, 2021/PRNewswire=KYODO JBN/--

The number of POS and Ecommerce transactions in Bahrain shot up by 65% in

August, year-on-year, reaching a total value of nearly $744 million during the

month, after topping $3.62 billion in the first half of 2021, the Central Bank

of Bahrain (CBB) revealed today.

According to new figures from the CBB, there were more than 11.3 million

digital transactions in Bahrain last month, valued at BD279.6 million ($743.7

million). The value of e-commerce and point-of-sale (PoS) payments rose by 50%

in August 2021 compared to the same month last year. There were more than 53

million digital payments in the first half of 2021, the data shows.

The figures reflect the trend in the rest of the GCC, which is currently

experiencing a region-wide surge in online and digital payments as countries

accelerate their transition towards cashless societies in the wake of the

pandemic.

Lockdowns last year caused a dramatic shift towards digital payment systems.

Bahrain's national electronic wallet, BenefitPay, announced a 785% increase in

the number of remittances through its Fawri+ service (an online payment service

introduced under the Electronic Funds Transfer System) in 2020 – exceeding $5

million. And research from the European Payments Council indicates that the

MENA region will process around 139 billion individual non-cash transactions in

2022, which is 90 billion more than five years ago.

Bahrain is among the leaders of the Middle East's march towards a paperless

financial system, thanks to its innovative regulation of FinTech. Bahrain

boasts some of the world's most advanced digital infrastructure and has

produced several leading start-ups that are disrupting the region's digital

payments infrastructure.

Dalal Buhejji, Executive Director of Business Development Investment

Origination at the Bahrain Economic Development Board, said: "Even before the

pandemic, the GCC was embracing digital and mobile banking and payments.

Bahrain has anticipated the trends that were catalysed by the pandemic. The

Kingdom has a proven track record of reacting quickly to embrace emerging

financial technologies and flexibly regulate them. An example of our

forward-thinking regulatory framework is the way the Kingdom mandated the

adoption of open banking. Our regulatory approach, along with our advanced

digital infrastructure, is why we are at the forefront of developing the

technologies, solutions and ecosystems that will form the future of the

region's digital economy."

Reforms to open banking are expected to have broad ramifications for the

payments business, according to a recent survey from McKinsey, published in 23

August. When respondents to the survey were asked what government- or

regulator-driven action would be most effective in steering customers to

digital payments, 27% nominated regulatory approval for open banking. In 2018,

Bahrain made a leap forward in the financial services sector, issuing open

banking rules, followed by a framework with guidelines on data sharing and

governance in 2020.

*BD 1 = USD 2.65

About Bahrain Economic Development Board

The Bahrain Economic Development Board (EDB) is an investment promotion agency

with overall responsibility for attracting investment into the Kingdom and

supporting initiatives that enhance the investment climate.

The EDB works with the government and both current and prospective investors,

in order to ensure that Bahrain's investment climate is attractive, to

communicate the key strengths, and to identify where opportunities exist for

further economic growth through investment.

The EDB focuses on several economic sectors that capitalise on Bahrain's

competitive advantages and provide significant investment opportunities. These

sectors include financial services, manufacturing, ICT, tourism, logistics and

transport.

For more information on the Bahrain EDB visit www.bahrainedb.com; for

information about Bahrain visit www.bahrain.com.

Photo -

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SOURCE: Bahrain Economic Development Board