KNET drops bank selection in payment gateway to boost security, align with global standards
Move sparks varied technical interpretations regarding its underlying objectives
Following the announcement by KNET to update its electronic payment gateway, effective June 5, eliminating the bank name selection menu and requiring users to enter their bank card number directly, the move has sparked varied technical interpretations regarding its underlying objectives.
KNET clarified that the update is part of its broader strategy to align with global developments in digital payments, enhance service efficiency and modernize its systems.
The company, which provides automated banking services to all Kuwaiti banks, emphasized its commitment to adopting the latest financial technologies, reports Al-Rai daily.
The update also comes within the framework of the Kuwait National Payments Project, aimed at strengthening the competitiveness of the banking sector, supporting the national economy and reinforcing Kuwait’s position as a regional financial hub.
Industry observers note that this approach is not entirely new. Around 15 years ago, KNET’s gateway did not include a bank selection option. However, with rising concerns over fraud prior to the introduction of one-time password (OTP) systems, the bank name feature was added as an extra security layer.
With the advancement of security measures, including OTP verification, these concerns have diminished. Experts now suggest that displaying bank names may inadvertently increase fraud risks by giving hackers partial information about account details, thereby narrowing the range of possibilities they need to guess.
The latest update is therefore seen as a step toward enhancing cybersecurity by reducing exposed data points and strengthening protection barriers against potential breaches.
In addition, the removal of bank identifiers may help address rare cases of similar card number patterns across different banks, further minimizing technical vulnerabilities.
The move also opens the door for future expansion of the payment network. By removing the bank-specific limitation, KNET could potentially integrate foreign banks and alternative payment methods, including licensed digital wallets, subject to approval from the Central Bank of Kuwait.
Sources indicated that while there are currently no immediate plans to introduce foreign banks, the update lays the groundwork for such expansion, possibly beginning with Gulf-based institutions before widening further based on market needs.
Overall, the update reflects a dual objective: aligning with international payment standards while enhancing the security and flexibility of Kuwait’s digital financial infrastructure.
