Payments revenues in Bahrain expected 'to reach $2bln by 2031'

PHOTO

Bahrain - Payment revenues in Bahrain are expected to reach $2 billion by 2031 according to a new report by Boston Consulting Group (BCG), titled “Global Payments 2022: The New Growth Game.”

BCG’s 20th annual analysis of the payments industry in Bahrain shows an expected Compound Annual Growth Rate (CAGR) of 10.4% between 2021 to 2031 on payment revenues. Among the areas of particular strength will be revenues from current accounts, credit transfers, credit cards, and also electronic credit transfers.

Mohammad Khan, Managing Director & Partner, BCG, said: “Bahrain has shown a great appetite to embrace innovative technologies, emerging as one of the key payment innovation hubs in the GCC. The kingdom aims to become a cashless society by 2030 by continuing to capitalise on rising internet and mobile penetration to support the development of the local and regional e-commerce sector and overall SME growth.”

Four trends

The report outlines four trends that will shape the outlook for the global payments industry, which has some impact on Bahrain, over the next five years.

•The era of non-profitable growth is over. Payments players will have to demonstrate solid profitability to attract both customers and investors.

•Demand for electronic payments is getting stronger. The sustained cash-to-noncash conversion, the ongoing growth of e-commerce, and the increasing integration of payments into retail and corporate customer journeys will drive payments revenues globally

•Central bank digital currencies (CBDCs) are gaining momentum. Central banks are tailoring CBDCs to complement cash with digital central bank money to implement monetary policy faster.

•Payment businesses are under increasing scrutiny from regulators. Market participants must address risk dimensions, be it financial, compliance, cyber, or crypto to install the required safeguards for their businesses on their path to growth.

“Payments revenues in the GCC will see acceleration on the back of real-time payments infrastructure, a growing number of specialised payments players bringing new solutions to the market, and enabling policies from governments,” concluded Khan.