1. With Visa’s long-standing presence in Kuwait, how have you seen the country’s financial ecosystem evolve over the years?
Visa has longstanding presence in Kuwait, partnering closely with the government, banks, fintechs, and businesses to grow the country’s digital economy. Over time, Kuwait’s financial ecosystem has evolved significantly, driven by a strong push for digital transformation and economic diversification. Kuwait consumers are not only embracing digital payments but seem to be welcoming it with enthusiasm.
Central to this transformation is the government’s Vision 2035, which aims to reduce reliance on oil by investing in digital infrastructure and creating a supportive environment for startups and entrepreneurs[1]. The Central Bank of Kuwait (CBK) has played a key role, with its 2023-2024 strategy emphasizing digitalization as a pillar of sustainable development[2].
These efforts have fueled the rapid rise of cashless transactions and the growing use of mobile payment apps and digital wallets like Tap Payments and MyFatoorah, making digital payments a seamless part of daily life. Visa’s data highlights Kuwait’s leadership in digital payments, with tokenization penetration reaching an impressive 92% by December 2024—the highest in the GCC and third globally. Additionally, contactless payment adoption has soared to 99%, the highest rate in the region. These milestones reflect strong consumer adoption and retailer acceptance, underscoring Kuwait’s commitment to payment security, financial inclusion, and a cutting-edge digital economy.
This progress is a result of collaboration between the public and private sectors. Moving forward, continued investment and cooperation are essential to ensure Kuwait remains a global leader in digital payments and fintech innovation.
2. Can you share the key takeaways and implications of the recent Visa Where Cash Hides survey? What is Visa doing to enable more cashless payments?
The Where Cash Hides survey is Visa’s deep dive into understanding cash usage patterns in Kuwait, including the frequency and motivations behind cash transactions. This second edition surveyed 2,800 banked individuals across the GCC – 400 in Kuwait - through online and face-to-face interviews.
Despite Kuwait’s leadership in digital payments, 24% of consumer transactions still involve cash, particularly for peer-to-peer (P2P) and everyday spends. P2P transactions such as tipping (71%) and money exchanges among friends and family (53%) are prime categories where cash is used. On a positive note, areas like international transfers through exchange houses cash usage dropped to 24% from 32% in 2023, and rent payments, which also declined to 38% from 40%.
However, everyday spend categories like offline taxis (68%), farmer markets (42%), and restaurants (37%) showcase areas where cash is still prominent. Discretionary spending has seen a rise in cash use, particularly for events (45%), education (42%), luxury retail (39%), and travel (34%). Convenience and speed remain the top reasons consumers opt for cash.
These insights highlight clear opportunities to expand digital payment adoption in line with the government’s cashless agenda. At Visa, we’re addressing this by introducing innovative solutions like Visa Direct for fast, secure P2P payments, Click to Pay, for a more seamless, secure online checkout experience, and Tap to Phone, a cost-effective payment acceptance tool for small businesses.
3. How does Visa support and enable SMEs, startups, and fintechs within Kuwait’s business ecosystem?
Visa actively empowers SMEs, startups, and fintechs in Kuwait by providing tailored support, innovative solutions, and strategic partnerships to help businesses grow and scale. For SMEs, Visa’s She’s Next initiative supports women entrepreneurs through mentorship, resources, and networking opportunities. This year, Visa partnered with the National Bank of Kuwait (NBK) to expand the program across multiple sectors. Visa also supports SMEs through initiatives like Practical Business Skills, equipping entrepreneurs with tools to navigate the digital economy effectively.
Similarly, for startups in the fintech space, Visa fosters innovation through programs like the Visa Everywhere Initiative, which invites innovators to tackle real-world payment challenges. The impact has been significant, with local startups introducing groundbreaking digital payment solutions that enhance access to essential products and services through innovative approaches.
Visa’s solutions like Tap to Phone are also playing an important role for small businesses. This solution allows merchants to accept payments via smartphones, without having to invest in new hardware like a point-of-sale terminal. This solution reduces costs, enhances convenience, and ensures secure transactions while minimizing physical contact at the point of sale.
Visa’s commitment extends beyond enabling transactions—it’s about building an inclusive ecosystem where SMEs, startups, and fintechs thrive, driving innovation and contributing to Kuwait’s economic growth.
4. Given the focus on cybersecurity, what role does this play in Visa’s operations within the country to ensure safe and secure digital payments?
Security and innovation are at the core of Visa’s mission, and this commitment is evident in our initiatives across Kuwait. Globally, we have invested over $10 billion in cybersecurity in the last five years, and for good reasons: we recognize that trust is the foundation of any payment system.
By leveraging cutting-edge technologies, such as tokenization and artificial intelligence, Visa ensures that sensitive data is protected and that digital transactions remain secure. For example, our Visa Acceptance Platform (CyberSource) employs tokenization to replace sensitive card details with unique identifiers, safeguarding information while enabling secure eCommerce transactions. Globally, this technology has generated approximately $40 billion in eCommerce revenue for businesses and prevented $650 million in fraud last year.
Our efforts go beyond technology—consumer education is a crucial to building trust and confidence in digital payments. In 2023, we launched our Stay Secure research as part of our Stay Secure consumer education campaign with Kuwait Banking Association to educate consumers on recognizing threats and adopting safe practices in digital transactions. The research showed that 97% of consumers are likely to overlook warning signs of online fraud. In fact, the research also found that those who consider themselves knowledgeable about digital payments may be even more vulnerable due to overconfidence, which can lead them to click on fake links or respond to scams.
As we move forward, Visa remains committed to empowering Kuwait’s citizens and businesses with secure, seamless payment experiences that protect their financial interests in an increasingly digital economy.
5. What are Visa’s projections for its operations in Kuwait for 2025 and beyond?
In 2025 and beyond, Visa’s strategy in Kuwait is centered on strengthening partnerships with government, financial institutions, and fintechs to drive payment digitization and financial inclusion for consumers and merchants. In line with Kuwait’s Vision 2035, Visa aims to support the country’s shift to a cashless economy and promote economic diversification. Key priorities include expanding access to digital payment infrastructure for underserved communities and equipping businesses with the tools they need to thrive in an increasingly digital-first environment.
Looking ahead, Visa will continue to invest in innovative technologies and collaborative initiatives to enhance the payment experience for consumers and businesses. By fostering innovation within the fintech ecosystem and advancing secure payment solutions, Visa is committed to sustaining its leadership in digital payments and contributing to Kuwait’s growth as a regional hub for financial innovation.
[1] MOFA | Kuwait Vision 2035 "New Kuwait
[1]Banking & FinTech Companies in Kuwait: Growth Parameters