July 27, 2021

50% increase in digital payments in Kuwait

– 10% of participants experienced online fraudاحتيال

Consumers in Kuwait are witnessing an increasing decline in the rates of preference for cash transactions and a continuous growth in the levels of confidence in digital payments in traditional and electronic stores during the pandemic, according to the “Stay Safe 2021” study conducted by the “Kuwait Banks Federation” and the leading global company “Visa” in the field of payments technology. digital.

The study excludes the return of cash transactions to their previous high rates, and showed a continuous decline in the rates of using cash transactions in Kuwait.

She pointed out that, coinciding with the increasing demand for shopping via e-commerce platforms, and the use of contactless payments since the beginning of the pandemic, the demand for the cash-on-delivery service decreased by 88 percent, while the rates of using digital payments (contactless cards and digital wallets) for payment online or at Receipt rate of 50 percent.

Consumer opinions confirm the expectations that this trend will continue in the future, as 41 percent of the respondents said that they do not like to use the cash on delivery feature, while 38 percent of them are likely to use contactless payments in the future.

Nearly half of consumers (more than 40 percent) show high levels of trust in digital payments (contactless payments, digital wallets and QR code payments) when shopping in stores.

This reflects a noticeable increase since the beginning of the pandemic, as the main reasons consumers cited for their confidence in contactless payments included speed (43%), avoiding human contact (37%), convenience (37%), and the ability to control expenses due to the presence of the card or The mobile phone is in the consumer’s hand during the payment transaction (34 percent), and the broad acceptance range (33 percent).

Knowing the techniques

The study stated that knowledge of technologies that provide protection for digital payments plays a pivotal role in enhancing confidence among consumers. Half of consumers who trust digital payments (49%) said that their knowledge of the role of innovative technologies such as coding systems in protecting their digital payments contributed to enhancing their confidence in the choices Payment is cashless.

1 in 10 of the participants indicated that they have experienced online fraud attempts, while 20 percent have experienced phishing.

23% said that they did not receive the goods they paid for, while 26% said they received counterfeit goods, at a time when the study indicated that in cases of fraud, the most important steps that consumers are likely to take include deleting the personal electronic file (73 percent), posting on social media (53%) and informing the bank (47%).

powers of law

The Secretary-General of the Kuwait Banks Association, Dr. Hamad Al-Hasawi, said that Kuwaiti banks are proactive in adopting the use of modern financial technologies, and that they provide complete and distinguished services to meet the needs of their customers, and this was confirmed by “Corona”, so that the safe and easy-to-use electronic banking services provided to bank customers were not interrupted until During periods of total ban in the country.

He added that Kuwaiti banks are well aware of the challenges posed by the spread of financial technology, and invest large sums in this field and continue to develop their systems, in addition to conducting awareness campaigns for their customers to ensure the protection of the confidentiality of their data and money.

seize opportunities

“The results of the study showed that consumers fully adopted digital payment systems during the Corona pandemic in Kuwait, but this transformation is not without risks, as fraudsters were quick to take advantage of consumers’ transition to the online shopping environment,” said Neil Fernandez, Director of Risk Management at Visa Middle East and North Africa. The internet is looking for opportunities to take advantage of these changes in payment methods for goods and services.”

He added that from here the importance of continuing to educate consumers on safe payment behaviors, as the majority of consumers surveyed confirmed to communicate with banks and law enforcement agencies in the event of fraud is due to the tireless efforts of Visa’s partners in Kuwait and their commitment to maintaining the safety of consumers Enable them to use digital payments and electronic platforms with confidence. And he indicated that the payments sector must continue to take the utmost care and caution.

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