According to Boston Consulting Group (BCG), Bahrain’s payments revenue pool is expected to reach $1.2 billion by 2027, with growth likely due to the shift from cash to digital payments.
In a report entitled Global Payments Report 2023, the global management consulting firm predicts that transactions in Saudi Arabia will grow at a compound annual growth rate (CAGR) of 10.7 percent from 2023 to 2027. ing.
From 2018 to 2022, the payments industry’s total revenue grew at a compound annual growth rate (CAGR) of 6.3%, with the revenue pool reaching $841 million by the end of 2022. demonstrated resilience amidst challenges. .
In contrast, the global payments industry is expected to register an annual growth rate of 8.3% and reach $1.6 trillion by the end of 2022.
In a comprehensive analysis of Bahrain’s payments market, BCG forecasts revenue growth at a CAGR of 5.3% over the next five years (2023-2027).
Noting that growth is expected to slow globally, it said payments revenue is expected to grow to $2.2 trillion by 2027 at a CAGR of 6.2%.
Mohammad Khan, Managing Director and Partner at BCG, said: “Bahrain is at a pivotal point for players in commercial services, trading banks, issuers and payments infrastructure. Forecasts for the next five years to 2027 show a CAGR of 5.3% for the Kingdom’s payments industry, with a revenue This suggests an increase of 29%.”
Khan explained that this outlook is largely influenced by Bahrain’s rapid adoption of advanced technologies integrated into various organizational processes.
According to the report, four key areas are shaping the strategic direction of Bahrain’s payments industry: operational efficiency, generative AI, risk management and compliance, and mergers and acquisitions.
Khan added: “When examining Bahrain’s payments sector, it is clear that operational efficiency and cost optimization are priorities. The evolving regulatory environment demands rigorous risk and compliance structures, while M&A trends emphasize the importance of skills-based acquisitions. In this scenario, organizational flexibility It’s a key ingredient to success.”
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