Some older kiosks may still request the card, however 90% of the time, tap and go works well.A lot of people in Bahrain are moving toward digital payment options, which is altering the way people pay.  This is because the nation plans to stop using currency by 2030.  This shift is happening because of different local payment methods and initiatives from the Central Bank of Bahrain (CBB).

A look at the numerous methods of payment in Bahrain

Bahrain is now a pioneer in digital financial services since it offers a lot of solutions that make life simpler and more efficient for both companies and consumers.  In the past, cash was the most frequent means to pay, and cards were next.  But more and more consumers are choosing digital solutions.  In December 2023, a study of nano, micro, and tiny merchants indicated that 62% of them took both cash and digital payments. The other 38% solely took cash.

Important Local Payment Systems and Solutions

Benefit is the most prevalent method to pay with a card in Bahrain.  This local scheme must be on all debit cards produced in the nation.  It is also the most popular e-wallet in the nation and is accepted by a lot of people.  The Fawri+ service of Bahrain's official electronic wallet, BenefitPay, witnessed a 785% rise in remittances in the first half of 2021.  People trust Benefit as a secure, convenient, and real-time method to pay.

The Electronic Funds Transfer System is what EFTS stands for.

The Central Bank of Bahrain set up the Electronic Funds Transfer System (EFTS) to link all retail banks, their clients, and the persons who send invoices.  The purpose of this method is to make it easier to send money and pay bills.  You may utilize EFTS services at many banks, including branches, personal online banking, and mobile banking.  BENEFIT runs this new way to pay.

Also read: Should you use multiple payment service providers?

Three key services of EFTS: 

Fawri+:
This is a Near Real-Time (NRT) financial transfer service that enables personal banking users transmit up to BD 1,000 per day, per account, in Bahraini Dinars within 30 seconds, 24 hours a day, seven days a week.  Fawri+ also makes it easy to set up Direct Debit services, which let you pay your bills automatically.

Fawri:
It is a Deferred Net Settlement (DNS) financial transfer service that enables anyone in Bahrain transmit any amount of Bahraini Dinars to someone else.  Payments normally go through within a few hours during business hours.  It also works with Direct Debit.

Fawateer:
It: is an Electronic Bill Payment and Presentment (EBPP) service that helps people who do their banking online view all of their bills in one location.  It's a one-stop shop for all your queries concerning bills and payments.  Customers may monitor and pay their invoices that are late straight away using mobile or online banking.  You may perform Fawateer transactions for free at any hour of the day or night.  It normally takes less than 30 seconds to finish them.

Online wallets:

Credimax's stcPay and Max Wallet are two more popular e-wallets in Bahrain.  People trust STC Pay since it provides features like money analytics, a marketplace, and secure transfers both within and outside of the nation.  Mastercard and STC Pay have worked together to improve the customer experience.  People and companies may also use the BFC Pay App to keep their money secure in a digital wallet. This makes it easy to pay bills and other money demands.

Ways to Pay

Bahrain's payment options include more than just credit cards. They also include a variety of different digital payment solutions:

• Most establishments take all major credit cards, as well as digital wallets, Apple Pay, PayPal, Mada STC Pay, Visa Checkout, and Masterpass.  Card-based payments are still essential. 70% of the 1.5 million cards issued are debit cards.

• SADAD: SADAD lets you pay for more than 80 different services in cash at more than 850 kiosks across Bahrain.  This means you can pay for just about anything, anywhere, and at any time.

• TAM Dinar: PIE Payment International Enterprise produced TAM Dinar, which is a way to pay without cash that gives you a choice.

You may use your phone to pay using Apple Pay or Google Pay. Many payment gateways in Bahrain, such Verifone, Checkout, and Telr, allow these.  You may now use your Apple Pay wallet with AFS PRO virtual cards from Arab Financial Services (AFS).

Also read: How Alternative Payment Methods Can Reduce Chargebacks?

Policies and guidelines set by the government

The Ministry of Industry and Commerce has created new guidelines that stipulate all firms in Bahrain must take electronic payments.  This implies that all companies, whether they have one location or many, must allow clients pay with a card or a phone.  To satisfy the laws, businesses must create a bank account in the name of the company, register it with the ministry's Sijilat system, and utilize this account to handle all consumer payments.  Using personal bank accounts for commercial operations is now against the law.  If you do, you might be fined every day and lose your trade license.  These guidelines are supposed to make it simpler to follow the movement of currency, minimize the danger of online fraud, and encourage a cashless economy.  They also make checks on value-added tax (VAT) and other payments stronger.

The Central Bank of Bahrain is also changing the laws to make it easier for people to use open banking, cryptocurrencies, and crowdfunding.  The CBB has a Real Time Gross Settlement (RTGS) System that handles and settles all payments between banks in real time.
If you manage a company in Bahrain that works with clients or suppliers from other countries, becoming digital isn't only about applications for Bahrain. You also need a good means to process payments from across the world.  That's when something like TransFi comes in.  It makes it easy to send or receive funds across borders rapidly, without the normal problems of delays or high costs.

Conclusion

Bahrain is quickly becoming a cashless nation, and you can see and feel it everywhere.  Digital payments are increasingly common, from little stores to large malls.  There are a lot of fast and secure options to pay, such as BenefitPay, Fawri+, STC Pay, and Apple Pay.  The government is also making sure that everyone, including small businesses, is on board.  So, if you're in Bahrain, it's clear: it's not okay to carry cash; it's okay to go digital.  And to be honest, it simply makes things simpler.

FAQs

1. Is it entirely digital now, or can I still use cash in Bahrain?
Yes, you may still spend cash, particularly in smaller stores or establishments that have been there for a while.  But to be honest, most establishments now want you to pay with a card or phone.  The government wants us to become digital, so carrying a lot of cash seems old-fashioned.

2. What is this BenefitPay thing that I keep hearing about?
In Bahrain, BenefitPay is mostly a payment app.  You may mail money, pay at stores, or even scan to pay with it. Everyone uses it.  It's quick, close by, and far simpler than giving cash.

3. What's the difference between Fawri and Fawri+?
Easy.  Fawri+ is instant; the money is there in 30 seconds or less.  But you can only do it once a day (BD 1,000).  Fawri is for huge transfers; however, it might take a few hours, particularly during the day.  Both are good, it simply depends on what you need.

4. Do I have to have my card with me all the time, or can I simply use my phone?

In most locations, your phone is all you need if you have Apple Pay or STC Pay set up.