KUWAIT: KNET, the Kuwaiti electronic banking services company, reported a 17 percent increase in electronic transactions for the 2024 financial year, driven by the growing adoption of various digital payment methods. The increase in transactions was seen across platforms, including point-of-sale systems (POS), online payment gateways, government e-payment services (Tasdeed), and ATMs. This growth contrasts with a 14 percent decline in cash withdrawals, reflecting the ongoing shift from traditional cash payments to digital transactions.

Speaking at the company’s general assembly meeting, KNET’s Chairman, Mohammed Al-Othman, highlighted the company’s continued success in driving growth and embracing the latest digital transformation technologies. He noted that the total transaction volume for the year rose by 6 percent, with POS devices increasing by 5 percent and a 20 percent rise in the number of POS transactions.

In terms of online payment systems, Al-Othman reported a 13 percent increase in transaction volume through online payment gateways, with a 7 percent rise in transaction values. This increase in online transactions signals a broader trend towards digital solutions, as more consumers and businesses shift towards cashless payments.

However, the trend towards digital transactions has impacted cash withdrawals. There was a 14 percent drop in ATM cash withdrawals, and the value of withdrawals also decreased by 15 percent. This decline is attributed to a growing preference for electronic payments and digital transfers, which are becoming more convenient for consumers.

Al-Othman also discussed KNET’s efforts to modernize its infrastructure, noting the renewal of its government e-payment contract with the Ministry of Finance in August. This agreement has led to a 4 percent increase in the number of completed transactions on the government payment platform.

KNET’s Chief Executive Officer, Esam Alkheshnam, further emphasized the company’s ongoing commitment to expanding its market presence in Kuwait. Alkheshnam pointed out that the company’s innovations, such as the introduction of the instant payment service “WAMD,” and the ongoing development of the electronic payment gateway, were essential steps in supporting Kuwait’s national vision for digital transformation.

He also mentioned that KNET had replaced 90 percent of its outdated POS devices, which were operating on older 2G and 3G networks, with new devices that support more advanced communication technologies.

KNET, founded in 1992 with the support of local banks, has played a crucial role in linking the electronic payment systems of Kuwait’s banks. The company’s efforts align with Kuwait’s broader goals of reducing reliance on cash in daily transactions and enhancing the country’s financial inclusion. — KUNA