Visa, the world's leader in digital payments, sees a promising future for digital payments in Bahrain and considers the kingdom an attractive market for fintech innovation.
In an exclusive interview with the GDN, Visa country manager for Bahrain Malak Alsaffar explained that the company’s mission to drive digital commerce for the benefit of consumers, businesses, and the overall economy in Bahrain.
"Our goal is to enable more businesses and consumers to participate in the rapidly expanding digital economy, aligning with the government's digital commerce agenda," she said
"Whether it's facilitating contactless payments or providing low-cost acceptance solutions, our approach is always to co-design tailored solutions with our partners. This ensures that we can effectively meet the specific needs and address the challenges faced by consumers and businesses."
Stemming from a firm belief that the future of money is digital, Visa has a clear strategy in place to solidify and expand its operations in Bahrain.
With a significant expat and youth population, smartphone penetration reaching 121 per cent and Internet penetration at 99pc in 2021, the country is witnessing a growing familiarity with digital lifestyles.
The Central Bank of Bahrain reported a significant 75pc increase in contactless payments in August 2022, reflecting the growing demand for convenient and touchless payment options.
Bahrain has also experienced a notable rise in eCommerce, with projected revenue in the market expected to reach $1.313 million in 2023.
"However, despite these positive factors, the market in Bahrain is still known for its heavy reliance on cash," noted Ms Alsaffar, adding that a "cashless economy was not too far away".
On the importance of security in promoting digital payments, the official said it was "crucial".
"At Visa, we strongly emphasise the importance of security in digital payment acceptance. To achieve this, we conduct annual educational initiatives across the GCC region that focus on educating consumers and merchants about digital payment security," she added.
Data shows that as consumer expectations for digital payments continue to grow, banks have turned to fintechs to help deliver the seamless, secure digital payment and financial experiences consumers want.
Bahrain has seen the number of fintechs double since 2018 and in 2022, the country's fintech market revenue reached $12.86m.
This is projected to grow by over 50 per cent between 2021 and 2023.
Highlighting the Visa Everywhere Initiative (VEI), a global innovation competition for startups to showcase their innovative solutions to payment, commerce and social challenges, Ms Alsaffar said, "This programme provides a platform for fintech startups to showcase their ground-breaking ideas and compete for funding and mentorship opportunities.
"In addition to monetary prizes, VEI winners gain access and exposure to Visa's extensive networks of partners in the banking, merchant, and government sectors. Winning the competition also brings recognition from one of the world's most trusted and valuable brands."
The Saudi edition of VEI was opened to fintechs in Bahrain and Oman for the first time this year with local startup Daleel - an interactive platform that simplifies the world of finance for consumers - won first place and prize money of BD15,000 ($40,000).
"We look forward to working with them to bring the best of digital commerce to consumers and businesses in Bahrain," she added.
The global payments technology company also lists helping small businesses operate in a rapidly evolving world as a top priority.
"This commitment aligns with our goal to promote digital inclusivity, as we aim to digitally enable 50 million SMBs globally by 2030. That's why, over the years, we've focused on making sure small businesses have more tools and cost-effective solutions at their disposal to adapt, learn and evolve," Ms Alsaffar emphasised.
"One of the ways we support SMEs is through innovative mobile acceptance solutions. Tap-to-Phone is a prime example, as it enables merchants to easily accept contactless payments by turning their android mobile phones into payment terminals," she said.
"Visa Business Solutions further cater to the needs of businesses. For instance, corporate cards provide a secure and convenient way for clients, workers, and customers to access funds or earnings. These solutions streamline payment processes and help businesses manage their finances efficiently."
The company's commitment to supporting SMEs extends beyond financial solutions as the Visa Small Business Hub offers educational tools, solutions, and resources that empower entrepreneurs to run and grow their businesses effectively.
Recognising the importance of supporting women entrepreneurs, Visa launched the 'She's Next' initiative in partnership with Bahrain Islamic Bank (BiSB).
"The aim is to provide funding, training, and mentorship opportunities to women-owned small businesses helping them to unlock the benefits of digital commerce," said Ms Alsaffar.
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