KUWAIT CITY, Oct 4: Kuwaiti banks are preparing to request the joint automated banking services company “KNET” to replace approximately one-fifth of the outdated point-of-sale devices which currently use the earlier generation technology networks, hampering their speed, especially for rapid transactions relying on second and third-generation technologies, 3G and 2G, according to information obtained by the Al-Rai daily.

Initially, it is anticipated that around 20,000 point-of-sale (POS) devices dependent on outdated networks may be affected by this change. However, the exact number is still being determined.

As per KNET's data from the previous fiscal year, the total number of point-of-sale devices across Kuwait is expected to reach approximately 92,000 by the end of 2022. These devices facilitated 458 million transactions last year, amounting to 13 billion dinars.

The shift towards replacing point-of-sale devices relying on previous generation networks is prompted by the Communications and Information Technology Regulatory Authority (CITRA).

CITRA has informed banks of the necessity to replace old network devices with modern ones relying on fifth-generation cellular technology 5G. This transition is designed to enhance speed, reduce response time, and improve wireless service flexibility, considering that these networks are virtual, software-driven, and utilize cloud technologies.

Options for replacing KNET's point-of-sale devices may include the possibility of utilizing “4G” networks. However, according to sources, if this is pursued, banks prefer it to be within strict limits.

The continued use of point-of-sale devices for payment via 3G and 2G networks runs counter to efforts to develop current communication technology networks that heavily rely on 5G technology.

At another level, the Central Bank of Kuwait recently provided a 6-month deadline to transition all bank customer payments made via websites using the Apple Pay service system from the “MasterCard” network to “KNET.” The Central Bank emphasized the importance of completing this transformation within the stipulated deadline, whether for merchant or individual purchases.

KNET's point-of-sale devices have been accepting payments made via the “Apple Pay” system since its local launch. These devices operate using near-field communication (NFC) technology, compatible with devices running on the “iOS” system in countries where this service is active. However, electronic payment operations through this service still go through the “MasterCard” network, a situation the Central Bank aims to change to the “KNET” network within the specified period.

The Central Bank has urged KNET to enhance its payments network to facilitate users' daily financial transactions. This includes both personal transactions and purchases, leveraging the company’s infrastructure to accommodate any payment method entering Kuwait. This initiative aims to connect merchants with customers and provide better service.