Visa Bahrain: An Exclusive Interview With Malak AlSaffar on Driving the Cashless Future
While Bahrain has emerged as a leader in digital payments, outpacing many of its regional counterparts, a recent report on Bahrain by Visa highlighted that 17% of financial transactions continue to be cash-based. The number, although small, uncovers the money habits of consumers in the Kingdom.
Soon after the report was released, Gulf Insider sat down with Malak AlSaffar, Country Manager, Visa Bahrain to learn more about the Where Cash Hides study, why 17% of Bahrain's population still relies on cash transactions, and what measures are being taken to reduce this number even further. Visa's 'Where Cash Hides research, conducted by Ipsos, surveyed (online) 2,800 individuals from the general population across the GCC (400 in Bahrain) and included questions about the overall frequency of and motivations for cash usage. The research was completed in August 2024.
From empowering small businesses and fintech startups to enhancing digital security and expanding cashless solutions, the discussion explores the latest technologies, challenges in reducing cash dependency, and Visa's collaborative efforts with banks, regulators, and fintechs to shape the future of finance in Bahrain.
The purpose of the study was to identify the segments and categories where cash continues to be used. As we all know, Bahrain is very digital. However, by surveying 400 consumers, we aimed to understand what motivates cash transactions and how we, along with our partners in Bahrain's government, can engage those segments and reduce cash usage, creating a more convenient digital landscape for all consumers in the country.
Bahrain is undeniably a leader in digital payments, and we're very pleased with the progress made. Even at 17%, cash usage is relatively low compared to our GCC neighbours, highlighting the success of Bahrain's digital transformation.
Our research revealed that most Bahrainis are digitally native, which is a testament to the government's forward-thinking digital agenda over the past few years. The push towards digitalising payments has been a remarkable advancement, and we're proud to have partnered on several key initiatives to support this progress.
That said, there are still areas where cash remains prevalent. Around 28% of surveyed consumers indicated that they still use cash regularly, primarily for tipping, while 54% noted that cash is still used for peer-to-peer transactions in certain situations. However, for everyday spending, the reliance on cash has been steadily decreasing.
While 17% is still a phenomenal number, we're eager to see the momentum continue as Bahrain moves closer to becoming a fully cashless society.
Let's examine why people are still using cash. Our research highlights speed, convenience, and habit as the key reasons, even within the specific categories I mentioned. One of our main priorities is educating consumers about the benefits of digital payments while also ensuring they have access to them. It's essential that everyone, everywhere, can obtain a digital payment credential and, just as importantly, the means to accept digital payments. We approach this from both sides of the payment landscape—facilitating digital transactions for consumers and enabling businesses to accept them seamlessly. Visa's 'Where Cash Hides research, conducted by Ipsos, surveyed (online) 2,800 individuals from the general population across the GCC (400 in Bahrain) and included questions about the overall frequency of and motivations for cash usage. The research was completed in August 2024.
According to the study, individuals aged 30 to 39 years are the least reliant on cash for peer-to-peer and day-to-day transactions, with 55% of respondents in this age group reporting that they use digital payments for at least 8 out of 10 transactions. Malak AlSaffar Visa's 'Where Cash Hides research, conducted by Ipsos, surveyed (online) 2,800 individuals from the general population across the GCC (400 in Bahrain) and included questions about the overall frequency of and motivations for cash usage. The research was completed in August 2024.
We are fully committed to supporting Bahrain's objective of creating a cashless payment landscape, which is a top priority for us. A key part of our strategy is investing heavily in solutions that drive this transition.
For instance, we've identified key barriers to reducing cash reliance, such as peer-to-peer payments. Visa has the ideal solution in Visa Direct, which enables digital peer-to-peer transactions. Our focus is on bringing Visa Direct to the market to enhance consumer access to seamless digital payments.
Another challenge is payment acceptance. Not everyone has the right acceptance channels, which is why we are introducing solutions like Click-to-Pay. This simplifies e-commerce transactions, ensuring users can pay as easily online as they do via point-of-sale (POS) terminals. Similarly, our Tap to Phone solution enables merchants to accept payments directly on Android devices, eliminating the need for costly POS systems. This is particularly beneficial for micro and small businesses, making digital acceptance more accessible and affordable.
Beyond major launches, we also recognise the importance of the creator and gig economies, particularly SMEs, which form a key part of ING's ecosystem. To support this sector, we collaborate with partners to develop tailored products and educational initiatives. For example, we work with banks to launch SME cards, providing better access to financial services. Additionally, programmes like She's Next empower women entrepreneurs through grants, mentorship, and resources, helping them build financially secure and digitally enabled businesses.
Through these efforts, we continue to advance digital transformation in a way that is both practical and inclusive for the entire ecosystem.
Security and innovation remain key pillars for Visa. To provide consumers with the reassurance they need, they must have complete trust in the services we offer. Globally, we have invested over $10 billion in technology over the past five years to ensure the highest standards of safety and security. We leverage cutting-edge advancements in tokenisation and artificial intelligence to enhance our fraud monitoring systems.
E-commerce is an area where consumers often feel most uncertain about payment security. Our Visa acceptance platform, CyberSource, integrates some of the most advanced security technologies, including tokenisation, which ensures card details remain safe and protected across online transactions.
Beyond financial investment, we place significant emphasis on consumer education, particularly in markets like Bahrain, where different demographics may have varying levels of familiarity with digital payments. Last year, we launched the Stay Secure programme in Bahrain, an awareness campaign designed to educate consumers on identifying fraudulent websites, scams, and phishing attempts. Our research revealed that nine out of ten people express concerns over potential online fraud, highlighting the urgent need for continued education.
As we drive the shift towards a cashless society, in alignment with both government objectives and Visa's vision, ensuring that consumers not only adopt digital payments but do so safely and confidently remains a top priority.
At the core of what we do is collaboration. We work closely with partner banks, financial institutions, government bodies, and stakeholders across the ecosystem to build a robust digital payment infrastructure. Visa has played a pivotal role in Bahrain for many years, continuously innovating alongside our partners to enhance the payment landscape.
Looking ahead, our focus remains on strengthening these collaborations. One key initiative is the Visa Everywhere Initiative , which we have now launched twice. This programme invites fintech startups from Bahrain to compete for a Visa grant, providing them with access to a global platform to showcase their solutions.
Beyond fintech, we are committed to fostering inclusive growth through initiatives like She's Next . In 2024, we introduced this global programme to Bahrain in partnership with Bahrain Islamic Bank, Bahrain FinTech Bay, and Innovate for Bahrain. This initiative is designed to support and empower Bahraini women entrepreneurs by equipping them with the tools, mentorship, and resources needed to succeed.
Crucially, Visa does not introduce solutions in isolation—we bring them to market in collaboration with our ecosystem partners. Our role, both in Bahrain and globally, is to empower everyone, everywhere, by driving financial inclusion and innovation.
Through this discussion, it's clear that Bahrain is already recognised as one of the most advanced financial services hubs in the GCC. We are fortunate to have a visionary government that has made digitalisation a national priority.
Take BenefitPay, for example. With innovations like it, Bahrain is well-positioned to continue driving digital payments forward. I'm particularly excited about the advanced regulations that will further support innovative fintechs and startups, strengthening the ecosystem even further.
While significant progress has been made in reducing cash usage, there is still room to push that 17% figure even lower and create a truly digital economy. Cash still lingers in everyday transactions—whether at petrol stations or in tipping culture—and these are areas where we can explore new, innovative solutions.
By working closely with our partners, regulators, and banking institutions, we can continue to identify and eliminate these last pockets of cash dependency, driving the country towards a fully cashless future.
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