The use of technology to make cashless payments is becoming more popular, according to a report by the Bahrain Central Bank.
The volume of transactions grew to 125.5m in 2021, with contactless payments being the most significant share at 65.6%.
Digital payments contributed $8.5m (BD3.2bn) to the Bahrain economy in 2021 said the central bank in its report.
Point of sale transactions increased 49.8% in 2021, with the value of transactions leaping 34.6%. At the same time digital wallet transactions more than doubled with a 196.2% year-on-year increase.
Summarising the report, the Central Bank of Bahrain said: “Regionally and globally, the growth of digital payments has been on a steady rise in recent years. It has been supported by the proliferation of new technologies along with changes in consumer behaviour.
“These changes have helped in the emergence of electronic and e-commerce transactions as a powerful source of revenue for organisations — and also, as an opportunity for expansion.
The Covid-19 pandemic was a catalyst for the adoption of digital payments in Bahrain.
“While the Covid-19 pandemic proved to be a key catalyst for accelerated adoption of digital payments, it needs to be emphasised that the idea of non-tangible financial transactions goes a long way back.
“The financial sector has always been current with technological trends, and thus, has adapted itself to newer developments that helped in delivering smooth and efficient service to customers.
The Central Bank of Bahrain (CBB) said on Wednesday it raised its key policy interest rate on its one-week deposit facility by 75 basis points to 4.75%, following the U.S. Federal Reserve’s fourth straight hike of that size as the Bahraini dinar is pegged to the dollar.