The service is part of K-Net's introduction of a new instant domestic account-to-account payment scheme in Kuwait, authorised and overseen by the Central Bank of Kuwait (CBK).
The Instant Payments System (WAMD) helps the national payment infrastructure's capabilities. It provides a secure and advanced payment solution that meets the requirements of various customer segments but also promotes digital transformation in Kuwait by boosting the number of electronic financial transactions. Moreover, by adding this service to its Mobile Banking App, NBK strives to aid performance for increased customer satisfaction, while also offering a secure and reliable service (requiring users to enter a verification code during registration).
The Instant Payment Service simplifies money transfers. Customers only require the beneficiary's valid mobile number to send money. The process involves entering the recipient's mobile number, transfer amount, purpose, additional notes, and agreeing to terms before completing the transaction. To access the WAMD service through the NBK Mobile Banking App, customers must also sign up for the service and connect a bank account to send, receive, and request money.
NBK Mobile Banking App aims to provide a secure platform for customers to manage their finances anytime. The service offers a wide range of banking activities such as opening new accounts, monitoring transactions, accessing rewards points, settling credit card dues, paying bills, locating branches and ATMs, requesting account statements, and updating personal information. Additionally, customers can reach out to the bank for assistance, even when abroad, through toll-free numbers.
In 2021, Saudi Arabia and Bahrain introduced their real-time payment platforms. Subsequently, the UAE and Kuwait have also implemented similar platforms, with other countries in the region expected to follow suit in the future.
In Europe, the Single Euro Payments Area (SEPA) credit transfer scheme, initiated by the European Central Bank (ECB) and the European Commission, enables instant cross-border credit transfers within the Euro area.
The global trend towards Instant Payment solutions, such as the US FedNow platform launched in July 2023, is fueled by the demand for efficient and swift payment systems that reduce transaction costs. As Instant Payment platforms allow transactions to be completed within seconds without the involvement of intermediary financial institutions like clearing houses, it enables businesses to access their funds promptly, enhancing liquidity, reducing costs, and increasing payment transparency.
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