In 2024, bank card transactions in Kuwait saw a 4.4% rise, reaching approximately 47.8 billion dinars compared to 45.8 billion dinars in 2023. Point-of-sale (POS) transactions accounted for the largest share, making up 39.5% of the total value at 18.9 billion dinars. Close behind were online payments, which comprised 39.3% and amounted to 18.8 billion dinars. Meanwhile, ATM cash withdrawals contributed 10 billion dinars to the overall transaction value.
These numbers highlight the increasing shift towards digital payment solutions, showcasing consumers’ adaptation to evolving financial technologies. They also emphasize the need for ongoing advancements in this sector to accommodate the rising demand for seamless and efficient transactions.
Consumer Behavior
Over the past ten years, plastic card transactions in Kuwait have experienced significant growth, indicating a notable shift in consumer preference toward electronic payments. Between 2014 and 2024, the total transaction value surged by 161.8%, rising from KWD 18.2 billion in 2014 to KWD 47.8 billion in 2024.
This significant rise in plastic card usage highlights a fundamental shift in consumer spending habits, as more people opt for electronic payments over traditional cash transactions, reducing the need to carry physical money.
Consumer behavior in Kuwait is increasingly embracing digital technologies, influencing financial and business strategies that drive economic growth and foster innovation. As this trend accelerates, institutions and companies must expand and enhance digital payment services, offering more options to meet evolving consumer demands.
Payment Methods
The substantial rise in plastic card transactions highlights society’s growing adaptation to digital transformation. Transactions made through point-of-sale (POS) systems experienced a remarkable 148% increase, soaring from KWD 7.6 billion in 2014 to KWD 18.9 billion in 2024.
Moreover, the rise in card usage has been accompanied by a decline in ATM transactions, which dropped by 5.1% to KWD 10 billion through 76.5 million withdrawals, compared to KWD 10.6 billion from 81.5 million withdrawals a decade ago.
This noticeable shift toward electronic payments over cash withdrawals highlights consumers’ increasing dependence on modern financial solutions. It signifies evolving spending habits, with more people favoring card transactions for convenience and security. This trend underscores Kuwait’s growing embrace of digital technology in financial dealings.
This trend marks a significant advancement for Kuwait’s financial and commercial sectors, enhancing the efficiency of payment systems and strengthening trust in the banking industry.
E-Commerce in Kuwait increases to 210.5%
Over the past five years, Kuwait has experienced a remarkable surge in online transactions, growing by 210.5% from 2020 to 2024. The transaction value soared to KWD 18.8 billion, up from KWD 6 billion in the earlier period. This growth highlights the increasing acceptance of e-commerce among Kuwaiti consumers and residents, showcasing their adaptability to modern technological advancements.
The rise in e-commerce transactions reflects a fundamental shift in Kuwaiti consumer behavior, with more people embracing online shopping for its convenience and accessibility. Advances in electronic payment systems, strengthened security measures, and the proliferation of diverse e-commerce platforms have boosted consumer confidence, accelerating this transition. As a result, e-commerce is driving economic sustainability and creating new growth opportunities for Kuwait’s commercial sector.
3 Reasons to adopt Digital Payment Methods
The radical shift in consumer behavior toward electronic payments can be attributed to several key factors, including:
- Ease of Use: Plastic cards offer a fast and convenient alternative to cash, simplifying everyday purchases.
- Security: Consumers prefer using cards as they offer greater protection against fraud and safeguard financial information, ensuring a more secure payment experience.
- Boosting E-Commerce: The rapid growth of online shopping has driven higher demand for electronic payment methods, with plastic cards enabling fast and seamless transactions.
Source: Al Qabas
