Al-Obaid: Payments services undergo dynamic transformation characterized by digital innovation

15/09/2024

KUWAIT CITY, Sept 15: In an interview with EMEAFinance magazine, Executive Manager of Digital and Alternative Channels at Kuwait Finance House (KFH), Meshal Al-Obaid said that the bank has recently launched WAMD service through KFHonline in collaboration with K-Net, allowing customers to make payments quickly without the need to remember or enter complex details like account or IBAN number to send money to other customers in KFH or any other local bank, indicating mobile number is something most people already have and use regularly. Through WAMD transactions are completed instantly in a few seconds, which is beneficial for both the payer and the payee. This reduces waiting times, especially in urgent situations, taking into consideration service is available 24/7.

Al-Obaid mentioned that WAMD KNET is a real-time payment system that enables instant money transfers between individuals using only their mobile numbers. It leverages advanced technology to facilitate seamless and secure transactions.

In the same context, Al-Obaid explained that the underlying technology includes:

1.tReal-time payment infrastructure. This ensures funds are transferred immediately between accounts.

2.tRegistration allows for linking mobile numbers to bank accounts.

3.tKNET's payment gateway provides a secure platform for processing transactions.

Al-Obaid pointed out that WAMD KNET prioritizes the security of its users and employs robust measures to safeguard transactions.

He added that the security measures for WAMD KNET include SSL encryption: This protects data transmitted between the two systems and Digital signing: This ensures data integrity and authenticity.

Regarding the feedback from users/customers so far, Al-Obaid confirmed that the feedback is positive, and customers are extremely satisfied with the service, where customers can send/request money in a few steps within seconds.

comparing the service to other real-time payments schemes launched in the GCC region, Al-Obaid explained that Other real-time payments schemes user experience can vary based on the platform and user interface of the banking or payment service providers. In addition, other real-time payments schemes may require IBANs, account numbers, or other identifiers, which can be less user-friendly compared to mobile numbers, however the choice between them may depend on user preference and specific use cases.

Al-Obaid pointed out that the payments services are evolving rapidly, and it is driven by several key trends and developments such as:

•tIncreased adoption of digital payments where there is a significant shift from cash to digital payments. Consumers and businesses are increasingly using online banking, mobile wallets, and contactless payments.

•tE-commerce growth: The rise in e-commerce has spurred the need for robust digital payment solutions, leading to innovations in payment gateways.

•tRegulatory support and enhanced frameworks: Governments in the GCC are promoting digital payments through initiatives like WAMD service for local instant payment in Kuwait and AFAQ transfer service for the GCC instant payments which KFH has been among the first banks to launch the service in Kuwait through KFHonline. Moreover, the Central Bank of Kuwait is introducing Enhanced regulatory framework, which is established to support digital payments, improve security, and ensure compliance with international standards.

•tRise of FinTech’s where the region is seeing a surge in fintech startups offering innovative payment solutions.

•tGrowing Use of Contactless and Mobile Payments due to their convenience and safety.

•tFocus on Financial Inclusion where efforts are being made to provide banking and payment services to underbanked and unbanked populations, leveraging mobile technology and digital payment solutions.

Al-Obaid added: the payments services in the Middle East are undergoing a dynamic transformation, characterized by digital innovation, regulatory support, and a focus on financial inclusion and security. These changes are positioning the region as a growing hub for advanced payment technologies and solutions, which provides financial institutions with numerous advantages, including improved customer satisfaction, increased transaction volumes, competitive differentiation, cost efficiency, and new revenue opportunities, while also supporting regulatory compliance and financial inclusion.

KFH Group is keen to introduce different payments solutions tailored to satisfy our customers’ needs such as (WAMD) service for local instant payments in Kuwait, (AFAQ) service for instant payments in the GCC and instant transfer to (KFH- Turkey) through Ripple network and more services moving forward, concluded Al-Obaid.