Since the last time you logged in our privacy statement has been updated. We want to ensure that you are kept up to date with any changes and as such would ask that you take a moment to review the changes. You will not continue to receive KPMG subscriptions until you accept the changes.
We want to make sure you're kept up to date. Please take a moment to review these changes. You will not receive KPMG subscription messages until you agree to the new policy.
Considerations to navigate changes in the market landscape
Considerations for PSPs and banks to navigate the changes in the market landscape
›Considerations to navigate changes in the market landscape
As Covid-19 disrupts the entire payments landscape, what are the considerations for the banks and PSPs in Kuwait going forward? What are the expectations of the customers and how they should innovate in order to thrive in the digital era?
Focus on low hanging fruits: Address the sectors/merchant segments in need of digitalization during COVID-19 (e.g. SMEs, schools, retailers, government, landlords, etc.)
Reach out to potential new users (merchants and consumers) to create awareness of digital payments.
Create trust in digital payments: Essential for banks to invest in creating awareness and trust in their consumers on digital banking and digital payments
Consider expanding or repurposing existing issuing schemes such as co-branded cards and loyalty programs (e.g. expanding redemption options for airline miles during a period of no travel, new co-branding concepts). Explore new merchant tie-ups for co-branding cards to incentivize card pay
Extend value-added services to merchants
Evaluate the potential for adjacencies to core offering to increase lifetime value of customers
The legacy offline and SME businesses in Kuwait were compelled to digitalize during COVID-19. Developing a one-stop-shop offering to address their needs can enhance value capture:
Activating solutions such as e-KYC to enable easier onboarding
Integrating solutions such as low-cost DIY e-commerce store with a PG
Enabling merchants to make data-driven decisions through analytics-based insights
Handhold merchants in their digital transformation journey with integrated digital payment and affiliated offerings, such as integrated e-commerce store solutions, multi-currency payment acceptance solutions, reporting and data-driven insights through payment analytics.
Consider assisting merchants with their liquidity needs through the Central Bank of Kuwait’s soft loan package
Evaluate the introduction of digitally-enabled BNPL solutions to merchants to help boost sales during the downturn
Evaluate new segments for growth, e.g., multi-currency acceptance, adjacent geographies for expansion, Buy Now, Pay Later (BNPL) solutions for merchants, online insurance for merchants and consumers
In addition, PSPs globally are offering lending solutions to merchants/customers subject to regulations and their own financial position
Accelerate digitalization: Evaluate the existing digital banking offerings vis-à-vis the market needs; prioritize the digitalization programs using an importance vs. ease of launch analysis; fast-track the high-priority programs
Evaluate the challenger bank model, to accelerate digitalization of banking outside the core banking model, targeted at the tech-savvy young population (e.g., LIV Bank of Emirates NBD, Meem of Gulf International Bank, Neo bank of Mashreq, etc.)
Explore partnerships with banks and telcos to augment their digital payment portfolio. Partnerships with banks can also focus on extending new solutions to the combined customer base, e.g., solutions such as installment-based purchases, and/or BNPL.
With a focus on SMEs, PSPs can consider assisting them in digitalizing non-payment aspects of their business (e.g., low-cost cloud-based accounting, SaaS solutions) in partnership with relevant vendors .
Explore partnership opportunities with PSPs, fintech players, e-commerce and other industry participants (e.g., telcos) to enhance offerings with a shortened time to market
Globally banks have also leveraged fintech partnerships to onboard digital technology solutions for customer-facing operations, digital authentications, Artificial Intelligence-based solutions, blockchain and analytics