MANAMA: An electronic wallet that will allow shoppers to pay using their smartphones was launched in Bahrain yesterday.
It has been developed by Benefit, which handles the country’s electronic fund transfers and ATM transactions, in partnership with Lebanese fintech firm FOO.
The National Mobile Electronic Wallet (BenefitPay) is a mobile application that allows users to make or receive payments without the use of cash or credit and debit cards, said Benefit chief executive Abdulwahid Janahi during a Press conference at the InterContinental Regency.
All users need to do is download the app, create an account using their CPR and mobile numbers and register using a one-time-password received through SMS, he said.
“Users will be assigned a PIN number and can also use their fingerprints to authorise BenefitPay to make the payment.”
Merchants will be able to get BenefitPay by first contacting the acquirer bank who will send them log in credentials via email allowing them to set up virtual branches and then begin using BenefitPay to receive business related payments over their smart devices through the merchant version of the app.
The launch of BenefitPay is divided into two phases, the first of which was kicked off yesterday.
The first phase uses QR code scanning to facilitate payments between registered consumers and merchants.
The second phase to be implemented by the end of the year will see BenefitPay’s integration with the Electronic Fund Transfer System adding Fawri+ and Fawateer as well as a technology upgrade to add Near Field Communication (NFC) payments.
Marketing services for merchants to engage in sales promotion with users of the app will also be included in the second phase.
In response to a question, Mr Janahi said he had “good reason to believe that this system will be successful”.
“Bahrain is a regional leader in the finance and economic sector. The demand for safe, secure, convenient transactions has never been stronger, and that is why we are the first in the region to develop this service.
“We believe this initiative will contribute towards making the society less dependent on cash. Bahrain is already a leader in the region when it comes to banking and finance, and this allows us to sustain and enhance our leadership.”
According to him, solutions like the e-wallet would also boost trade and commerce.
“There will be an increase in buying and spending due to easier and faster fund transfers and payments and avoiding the hassle of cash withdrawals and use of special machines.
“[Previously] businesses like the local tailor, bakery, the Instagram business, or barbershop/hair salons, would lose business because they did not accept cards.
“Now, consumers will be encouraged to spend at these stores, and they too will be encouraged to accept BenefitPay if only for the sheer convenience of doing so, effectively accelerating an existing stream of revenue in the economy.”
He said the e-wallet also streamlines branch management, payment tracking, and transaction history for merchants.
“BenefitPay allows all type of merchants including electronic company registration holders (Sijili) regardless of the size of their enterprise to receive payments without the use of more sophisticated machines as is the case today.
Further, it allows merchants to accept and review payments using any smart device at their disposal.
“This means merchants and consumers will be in complete control of transactions and can view transaction history digitally.”
avinash@gdn.com.bh
&uuid=(email))