Popular Local Payment Methods and Solutions in Bahrain

The financial landscape in Bahrain is transforming at an incredible pace. A country where people rely heavily on cash, Bangladesh is now a regional leader in digital finance. Supported by robust regulation from the Central Bank of Bahrain (CBB), an increasingly vibrant fintech ecosystem and an uptake in consumer adoption, Bahrain is in the process of creating a payment landscape that is secure, fast and well-connected on a global basis.

In this piece, we will take a look at Bahrain’s established and up-and-coming payment systems and the important role that platforms are playing in facilitating simple global payments and cross-border gateway solutions for today’s businesses.

Traditional Payment Systems Remain — Though They Are Changing

Cash Payments

Traditionally, Bahrain is a country of cash, with cash prevailing as the primary mode of transaction, in particular by small and micro retailers. The currency remains a popular unit of currency in local transactions after it was earlier replaced in 1965 by the Persian Gulf rupee. In December 2023, 38% of small merchants only accepted cash, and in the majority (62%), there was a mix of cash and digital payments.

With more than 850 touchpoints available country wide, services such as SADAD kiosks continue to facilitate bill payment of utilities, mobile top-up and governmental services in cash.

Card Payments

The usage of debit and credit cards is common. 70% of cards in Bahrain are debit cards, and each issued card must be able to transact on the Benefit network — a local payment rail regulated by the CBB. They’re EMV-capable cards and work with the popular digital wallet BenefitPay, introduced for the convenience of transactions.

There has been a fast uptake of contactless card payments in Bahrain, growing from 31.9 million transactions in 2020 to 168.9 million transactions in 2024 as consumers seek faster and more sanitary ways to pay.

The Role of EFTS in Contemporary Banking

In 2016, Bahrain formed the Electronic Funds Transfer System (EFTS) to facilitate bank transfers and cash payments for utilities. Funded by BENEFIT Company the Gateway works to move money through banking services and online and mobile banking using three core services:

Fawri+:
Instant payment up to BHD 1,000 per day per account. It is the engine behind the BenefitPay backend and does around 85% of EFTS transactions.

Fawri:
Payment is credited to the beneficiary’s account at a later date within Bahrain, during business hours.

Fawateer:
An electronic bill presentment and payment (EBPP) service that allows users to make instant bill payments through a single dashboard.

These have played a huge role in increasing financial inclusion and have made us less dependent on physical banks.

Emergence of Digital Banking and Mobile Wallets

With the proliferation of smartphones and deep internet penetration, mobile wallet adoption is growing rapidly in Bahrain. Some of the key players are as follows:

BenefitPay:
The most used wallet in Bahrain that is accepted by all local debit cards. It supports QR code payments, P2P (peer-to-peer) transfers and online shopping.

stcPay:
The product of the telecoms giant STC, stcPay enables secure payments and international remittances with integrations such as Samsung Wallet.

Max Wallet by CrediMax:
Provides secure storage of payment details and is convenient for both online and in-store transactions.

Up to 2021, digital payments in Bahrain registered a growth of 196.2% of which 65.6% were contactless transactions.

Also read: Popular Local Payment Methods and Solutions in Bahrain

TransFi: Revolutionising Cross-Border Payments in Bahrain

Once Bahrain’s domestic economy is fully digitised, the next hurdle is creating efficient, secure, and scalable cross-border transaction solutions.

Key offerings from TransFi include:

Global Payments Platform

Transfi empowers organisations and people in Bahrain to make and receive international money transfers safely, quickly, and transparently. Whether it’s an exporter getting paid in euros or a freelancer sending remittances to family residing overseas, Transfi’s platform makes it easier.

Multi-Currency Support

Compatible with USD, EUR, BHD, INR to do multiple currency Transfi. This is an important feature for a business because, for the first time, businesses in Bahrain can conduct international trade without the fees or hassle of converting between various payment systems.

PSD2 Compliant Payment Gateway

Built to be PCI DSS and CBB Regulations compliant, our Payment Gateway enables merchants with an end-to-end solution, including fraud detection, cascading, smart routing, and transparent settlement. It is perfect for companies doing business in multiple countries.

Speed and Simplicity

Transfi is designed for rapid onboarding and straightforward integration as part of our robust infrastructure. Businesses can connect to the gateway with low IT requirements and get up and running to process payments locally and internationally.

Supportive Policies and Open Banking Tools

Regulators in Bahrain have identified open banking as a cornerstone of digital transformation. Since 2018, the CBB has rolled out platforms to enable third-party providers such as Transfi to securely access client data and offer smarter services.

In 2023, Bahrain also launched eFada, a free-of-charge electronic commerce certification platform indispensable for boosting customer confidence. More than 220 enterprises have been certified with eFada, further encouraging the safe development of digital commerce.

Also read: Popular Local Payment Methods and Solutions in Barbados

Conclusion

Bahrain and its financial system are undergoing their fastest transformation yet. With the digital shift and increased adoption of digital methods by more and more customers and businesses, the need for robust, global, secure, and customer-friendly payment solutions will further increase.

Transfi is the perfect candidate to cater to this market need as it can allow Bahraini companies to grow internationally, accept multiple currencies and be future-proof in terms of regulations. Whether you are an expanding e-commerce company, freelance across borders or a digital platform – connecting with Transfi could be the most important financial choice you will make in 2025.

FAQs

How can my business benefit from Transfi in Bahrain?

Transfi allows you to make quick, legal and secure cross-border payments and is a complete payment gateway for local and international transactions.

Is Transfi licensed to operate in Bahrain?

Transfi’s systems are PCI DSS compliant and adhere to the Central Bank of Bahrain regulatory guidelines, offering a secure helping hand to businesses.

Can I accept payments in foreign currencies using Transfi?

Yes. Multi-currency settlements with Transfi, your business can get paid in USD, EUR, AED and many more.

How fast can I add the Transfi payment gateway to my website?

Transfi offers developer-friendly APIs and an integration team to help you get up and running quickly – a few business days if your tech is ready.

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Effortless Cross-Border Payment Collections

As the world becomes more interconnected and businesses engage in global trade, the seamless collection of payments from across the globe is increasingly important. Whether you're an eCommerce merchant, a freelancer, or a global enterprise, TransFi’s Collections make collecting payments from customers and partners worldwide not only easy but also secure and efficient. TransFi eliminates unnecessary delays and currency exchange complexities, ensuring your funds are always readily accessible. Our Collections product provides a fully compliant, scalable payment infrastructure with support for over 50 currencies, offering instant settlements in stablecoins or other fiat and digital currencies.

By using TransFi’s Collections, businesses can provide their customers with easy-to-use and familiar local payment options. Our Collections product not only automates business payments but also streamlines global transactions, ensuring the utmost efficiency and reliability for businesses worldwide.

Global Payment Collection, Simplified

Due to differences in regulations, methods of payment, and currency exchange rates, international payments can be difficult to manage. TransFi Collections overcomes these barriers by providing a single platform for companies that allows for multiple methods of payment, such as bank transfers, e-wallets, and stablecoin settlements. This enhances operational efficiency and reduces manual work by allowing businesses to track, manage and reconcile payments through a single dashboard.

TransFi allows businesses to automatically generate and manage invoices, attach supporting documents, and issue reminders to customers to foster effective collections. This proactive approach reduces payment disputes and delays, all while improving cashflow and financial management.

Seamless Payment Collection Experience for Businesses and Customers

TransFi Collections is designed to give businesses an efficient and smooth payment solution with the assurance of a secure and frictionless customer experience. Through our platform, businesses can accept payments in local currencies and convert automatically to stablecoins or fiat, making the hassles of currency exchange a thing of the past. With rapid and trusted settlement, businesses do not have to wait for slow international banking processing times anymore, gaining quicker access to funds. Our APIs can also be incorporated directly within the platforms of businesses, minimizing manual intervention and facilitating payment processing. TransFi Collections also provides real-time insight into transactions using different analytics and reporting tools, empowering businesses with key insights. No matter your requirement, be it managing recurring payments, processing single invoices, or dealing with bulk collections, our solution automates payment workflows to reduce administrative efforts and maximize efficiency. By simplifying the payment processes for both companies and their clients, TransFi Collections optimizes financial operations so that firms can concentrate on development and customer satisfaction without worrying about delays in settlement or complicated integrations.

Benefits of Partnering with TransFi for Cross- Border Payment Collections

Collaborating with TransFi for cross-border payment collections guarantees an efficient and seamless process for companies across the world. With borderless payment collection, companies can receive payments anywhere in the world without having to go through different banking networks or paying high conversion charges. TransFi Collections allows companies to collect money from foreign customers through local payment channels, thus providing greater reach and conversion rates. Real-time settlements remove the delays of traditional banking and allow payments to be made in stablecoins or fiat instantly, providing continuous cash flow. Automated invoice processing streamlines payment processes, saving manual labor and boosting efficiency by creating invoices, adding required documents, and sending timely reminders. Scalable API integration enables businesses to seamlessly integrate TransFi Collections into their current platforms, making global payment collection scalable and efficient. Advanced security and compliance provide the assurance that all transactions are encrypted, secure, and regulated to the highest standards. TransFi Collections is not merely a payment gateway but a full suite of solutions empowering businesses with scalable, compliant, and efficient payment collection services. Whether you collect payments from suppliers, freelancers, or international customers, our platform provides timely, cost-saving, and secure transactions. Step into a digital future of payments with TransFi and feel the force of borderless, seamless collections.

Empower Your Business with TransFi Payment Collections

TransFi Collections is not only a payment gateway but a complete solution that empowers businesses operating across borders with secure, cost-effective, compliant, as well as scalable payment collection tools. From payment collections for goods and services to e-commerce transactions, TransFi Collections provides effortless, secure, and instantaneous settlements.

With TransFi, businesses can experience the future of digital payments and the power of borderless and hassle-free collections. Our user-friendly dashboard facilitates seamless transactions and allows businesses to collect payments against goods and services, experiencing transaction speeds in seconds. Freelancers and influencers can also benefit from real-time transactions, enhancing the efficiency of their global payment collections. Using our secure and scalable stack, e-commerce businesses can achieve 90%+ conversion rates, 99%+ uptime, and low latency, ensuring enterprise-level performance.

Integrate TransFi Collections with your business and experience secure, seamless, and scalable payments that are not only efficient and reliable but also globally compliant.