Businesses urged to invest in fintech, e-payment services

TDT| Manama

Reducing reliance on cash and the increasing the use of digital and electronic services like e-wallets and internet banking are some of the positive results coming from the coronavirus (COVID-19) pandemic, according to businessman Yaqoob Al Awadhi.

The CEO of systems integrator and IT consultant NGN International said that he expects more businesses to put in a greater investment in financial technology (fintech) and the e-payment sector in Bahrain, because of the recent developments from precautionary measures to prevent the spread of COVID-19.

“The boom in the business of e-payment platforms and companies at these times establishes them as an opportunity for investors,” said Al Awadhi. “We are witnessing a decrease in investor’s interest in sectors like hospitality, tourism, construction, and real estate.”

He stressed that accelerating the steps to reduce cash dependence runs on three parallel axes, which represent digital transformation, e-payment systems, and cybersecurity. “It’s crucial to expand e-payment services to a broad range of micro, small and medium enterprises such as auto repair shops, barbershops, farmers’ markets, street vendors, and others,” explained Al Awadhi.

“About 60 per cent of financial transactions in GCC states are made in cash, while this percentage has dropped in the US and Europe to less than 20 per cent, and the law in Sweden, for example, allows stores to refuse to receive cash.”

Al Awadhi added that “investing in fintech was positive even before the coronavirus outbreak…we realistically expect the emergence of more e-payment forces during the coming period independently or with immense contributions from banks.”