Wamd payments totaled 7.7 billion dinars in first eight months of 2026
. . . as banks prepare to phase out payment links
- Banks turn to Wamd for safer, more traceable transfers as payment links fade
Kuwait’s banking sector is preparing to phase out electronic payment links for individuals, a payment method introduced locally in 2015, as banks and the joint automated banking services company KNET move toward greater reliance on more secure and traceable instant payments through Wamd.
The move is aligned with regulatory and banking efforts to expand reliable electronic payment channels and strengthen payment security. Wamd, launched as an instant payment service in June 2024, is expected to become the main alternative as the use of individual payment links declines.
From a regulatory and banking perspective, Wamd transfers are considered lower-risk because they require direct access to the customer’s account and data, meaning the transaction cannot be completed without the account holder’s knowledge. Payment links, by contrast, can be circulated among multiple individuals, potentially making it more difficult to identify and track the final beneficiary.
No specific date has yet been set for ending the links service. However, preparations by banks and KNET, under the direction of the Central Bank of Kuwait, indicate that implementation could take place soon. Banks are expected to conduct coordinated customer-awareness campaigns explaining the reasons for the change and promoting Wamd as the preferred instant-payment channel, subject to Central Bank approval.
The regulatory shift is also aimed at strengthening anti-money laundering and counter-terrorist financing controls, improving transparency over payment orders and beneficial ownership, and protecting both parties to a transaction. Banking and regulatory officials have raised concerns that payment links could potentially be exploited through accounts belonging to individuals who have left Kuwait, domestic and marginal workers, inactive accounts and other accounts targeted for stronger oversight.
Wamd offers greater transaction traceability because payments are linked directly to the account holder. The links system, meanwhile, can allow payment and receipt instructions to pass between several people, creating challenges in determining the actual beneficiary and building an accurate database of the movement and purpose of funds.
The links system has also been viewed as a potential vulnerability for account exploitation and suspicious or unauthorized transactions, particularly through inactive accounts. Regulatory authorities have therefore sought to limit such risks, including by reducing the transaction limits applicable to individual payment links.
The Central Bank has also strengthened Wamd’s appeal by extending the period for returning funds transferred by mistake from seven days to one day, a feature not available through payment links. Central Bank data showed that Wamd payments totaled KD7.7 billion during the first eight months of the year, covering 118.4 million transactions. In August alone, Wamd transactions reached KD1.072 billion through 16.42 million transactions, compared with KD1.068 billion in July.
Online payments during the first eight months totaled KD11.43 billion across 251 million transactions, while point-of-sale payments reached KD12.74 billion through 683 million transactions. Automated teller machine withdrawals totaled KD5.74 billion during the same period, down by KD703.2 million.
Payment processing costs for both links and Wamd are borne by the two banks involved in each transaction on an interbank basis and processed through the interbank clearing system.
