Bank card transactions soar: Q1 expenditure hits 11.8 billion dinars

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KUWAIT CITY, May 12: Banks are undergoing significant digital transformations, aligning with the ongoing technical revolution and embracing artificial intelligence innovations. Reflecting this shift, banking operations conducted through websites during the first quarter of this year saw remarkable growth, signaling a robust demand from users and validating the accelerated digital transformation strategy.

Total digital spending, encompassing website operations and internal points of sale, amounted to 78 percent of the general total, reaching 9.257 billion dinars out of 11.880 billion. Domestic website portals accounted for the largest share of total operations, with 4.763 billion spent digitally, marking a notable increase of 608 million compared to the same period last year, reflecting a growth rate of 14.6 percent. Additionally, 4.494 billion were spent through various domestic points of sale during the first quarter of the current year, indicating a 4 percent growth over the corresponding period in 2023.

In contrast, “cash” withdrawals through bank devices saw a decline of 4.6 percent during the first quarter, totaling 124 million, compared to 2.745 billion for the corresponding period in 2023.

At the international level, spending through foreign websites witnessed a growth rate of 22.2 percent, reaching approximately 326.6 million for the first quarter of this year. However, cash withdrawals from abroad decreased by 18.6 percent, amounting to 61.6 million. Points of sale abroad also declined by 2.2 percent, totaling 294.9 million for the first quarter of the current year.

The surge in digital services is attributed to their high-security levels, flexibility, ease of use, and diverse offerings, leading to a continuous growth in electronic payment operations while cash withdrawals decline. Moreover, the proliferation of e-commerce companies licensed by the Central Bank, operating under close supervision and advanced business models, has provided consumers with multiple service options, prompting a shift from traditional bank card usage to digital services, enabling optimal bank account management with enhanced flexibility.

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