Bahrain’s payments revenue pool is projected to reach $1.2 billion by 2027, says Boston Consulting Group (BCG), attributing the growth to a move away from cash and towards digital payments.

In a report titled ‘Global Payments Report 2023’, the global management consulting firm predicts transactions in the kingdom would grow at a Compound Annual Growth Rate (CAGR) of 10.7 per cent from 2023 to 2027.

Between 2018 and 2022, the total revenue for payments industry grew at a Compound Annual Growth Rate (CAGR) of 6.3pc, reaching a revenue pool of $841 million by the end of 2022, demonstrating resilience amid global challenges such as the pandemic and economic fluctuations.

In contrast, the global payments industry registered an annual growth rate of 8.3 per cent to reach $1.6 trillion by the end of 2022.

Comprehensively analysing Bahrain payments market, BCG predicts a revenue growth at a CAGR of 5.3pc over the next five years (2023-2027).

Noting that slower growth is on the horizon globally, it says payment revenues are slated to grow to $2.2 trillion by 2027 at a CAGR of 6.2pc.

Mohammad Khan, managing director and partner, BCG, remarked: “Bahrain is at a pivotal point for merchant services, transaction banks, issuers, and payment infrastructure stakeholders. Forecasts for the next five years up to 2027 suggest a CAGR of 5.3pc and a revenue growth of 29pc for the kingdom’s payments industry.”

Mr Khan explained that the outlook is heavily influenced by Bahrain’s rapid adoption of advanced technologies which are integrated into various organisational processes.

The report says four key areas are shaping the strategic direction of Bahrain’s payments industry: operational efficiency, generative AI, risk management and compliance, and mergers and acquisitions.

Mr Khan added: “When examining the Bahrain payments sector, the priorities of operational efficiency and cost optimisation are evident. GenAI’s influence is growing, as demonstrated by its widespread integration into core organisational processes. The evolving regulatory environment requires stringent risk and compliance structures, while the M&A trend emphasises the importance of skill-focused acquisitions. In this scenario, organisational flexibility becomes a vital element for success.”

 

Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).