As purchasing habits shifted offline to online and cash to non-cash following COVID-19, the payments industry subsequently suffered an impact far less severe than initially anticipated, according to a new report by Boston Consulting Group (BCG). The report, titled Global Payments 2021: All In for Growth, sheds light on how national markets will recover over the next decade, with growth set to be driven by newfound momentum – including in Bahrain.
“When examining the recent economic recovery in Bahrain, the country’s payments industry has certainly played its part,” explains Mohammad Khan, Partner, BCG. “Changing consumers preferences and the emergence of various digital channels have been a key driver behind the industry’s contributions, with more fulfillment options, digital transaction processes, and empowerment through e-commerce made possible as a result.”
In line with findings published in BCG’s 19th annual analysis of the global payments industry, Bahrain shares many commonalities with other regional and international geographies, including manageable revenue losses considering recent turbulence and optimistic projections for the future. From 2015 to 2020, national payment revenues increased by 23pc to USD256 million, and they could reach USD485 million by 2030. Furthermore, Bahrain has the potential to record sustained growth over the next ten years and beyond, with a forecasted compound annual growth rate of 6.6pc from 2020 to 2030.
