Credit card usage in Kuwait grew at a compound annual growth rate (CAGR) of 12.02% between 2009-2013, driven by the increased installation of point of sale (POS) terminals in merchant outlets and Improved banking infrastructure.
A new report: “Kuwait’s Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape,” offered by Research & Markets, says the card payment volume was KWD16.0 billion (US$56.4 billion) in 2013.
Due to the emergence of contactless payment systems, enhanced security features and the convenience of electronic payments, Kuwait’s population has been encouraged to perform more card-based transactions. In 2013, the 3D password feature was added to credit cards by Ahli United Bank Kuwait, and helped to increase customer confidence for card-based transactions. To promote debit card usage, an integrated POS service is being installed across all Gulf Cooperation Council (GCC) countries.
The growing market for online shopping in Kuwait is one of the primary factors contributing for the rise of Kuwait’s cards and payments industry. E-commerce value increased from KWD57.3 million (US$199.1 million) in 2009 to KWD221.3 million (US$779.5 million) in 2013, at a review-period CAGR of 40.21%. The value of e-commerce is expected to record a forecast-period (2014-2018) CAGR of 23.92%. The primary reason behind Kuwait’s high online commerce value is the country’s high internet penetration rate. Internet penetration (users per 100 inhabitants) grew from 50.8 in 2009 to 84.9 in 2013, and is expected to grow over the forecast period.
Near Field Communication (NFC) technology is being increasingly adopted by payment network providers, service providers, merchants and mobile network operators in Kuwait. Visa, for example, partnered with the National Bank of Kuwait and Zain, to launch an NFC trail in October 2009. This was the first instance of NFC technology being provided in Kuwait, and offered a convenient low-value payment solution to customers. The technology is accepted by most retailers, and offers cardholders the convenience of paying for purchases using Visa PayWave terminals.
To obtain the report visit: http://www.researchandmarkets.com/research/m8jsn2/kuwaits_cards
For additional data on the Kuwaiti Payment Cards access CardData®. For information and commentary on Kuwaiti Payment Cards visit the searchable CardFlash® Library of more than 58,000 articles published since 1995. RAM Research® forecasts on Kuwaiti Payment Cards are available exclusively through CardWeb.com.®