‘Digital transformation reduces dependence on cash transactions’

KUWAIT CITY, Dec 22: The Chairman of the Board of Directors of Knet, Mohammad Al- Othman, stated that the company continues to keep abreast of the developments in banking services at the regional and international levels, reports Al- Qabas daily.

The development is taking place in the field of digital transformation by providing the appropriate infrastructure for payment systems, in a way that helps to provide products and services to customers of quality, high efficiency, and ease of use, he said. Al-Othman explained, during the joint automated banking services company general assembly meeting for the fiscal year ending on October 31, 2022, that Knet” is committed to work in accordance with its strategy by focusing on the main activities and opening new horizons for electronic services to improve the services provided to the banking sector and banks operating in Kuwait.

He pointed out that during 2022, the company cooperated with firms specialized in modern financial technology solutions to be proactive in the field of payments, as Knet operations, through its various electronic payment channels, during the fiscal year ending on October 31, 2022, witnessed a growth of 30% over the previous year, while the growth rate in the money traded reached 22%, as 31 billion dinars were traded through 741 million operations.

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Al-Othman added that Knet, in the framework of its support for digital transformation and reducing dependence on cash transactions, has reduced the number of ATMs by 24%, as a result of the decrease in demand for cash withdrawals. He went on to say, while the increasing growth in the number of electronic payment devices at KNET’s points of sale confirms the strength and efficiency of the service in the local market, the number of points of sale devices spread throughout Kuwait has reached 92,000.

He added, Knet has carried out 458 million transactions through point-of-sale devices worth 13 billion dinars. As for purchases from websites via the electronic payment gateway of Knet, the number was 207 million transactions worth 14.5 billion dinars. Al-Othman pointed out that Knet has strengthened its relationship with the Ministry of Finance within the framework of their joint cooperation in the government electronic payment program ‘Tashdeed’ as the rest of the self-devices for selling financial stamps that used to operate with the cash system were separated, and the fees for all transactions of the various ministries of the state are obtained electronically, whether through the eStamp application or points through the sale and the electronic payment gateway.

For his part, the CEO of the Joint Automated Banking Services Company (Knet), Essam Ibrahim Al-Khushnam, stated that Knet has completed all the necessary preparations to launch its comprehensive application, KAPP, which was developed by the company in order to provide services that facilitate customers to transfer funds between accounts, whether in the same bank or in other banks. He added, this service will be the first in the application among a distinguished package of services and that work is being developed to be added later during the coming period. Regarding piracy, Al-Othman said: “We are betting on customers’ awareness, as the Central Bank of Kuwait is working through the “Let’s Be Aware” campaign to enhance this awareness.

“Regarding “Apple Pay” services and the possibility of entering new services into the market during the coming period, Al-Othman indicated that without the Knet infrastructure, there would be no banks that provided other payment services, stressing that the “Apple Pay” service is directly with banks and that the Knet provides its infrastructure. He added, “We hear in the market that Google Pay services are on the way and all these payment methods are based on the Knet infrastructure and basic company to provide them, as the company is ready for any payment method that comes to Kuwait to link the merchant with the customer and provide better service.”