The Kuwaiti market is experiencing a notable shift towards digital transactions, with cash payments and ATM withdrawals seeing a significant decline. This change is reflective of the growing adoption of electronic payment systems across the country.

Despite the continued popularity of ATM withdrawals in Kuwait, the country witnessed a 5.9% decrease in cash withdrawals last year. In 2023, the total amount withdrawn through ATMs reached around 10.721 billion KWD, whereas in 2024, this figure dropped to approximately 10.084 billion KWD, representing a reduction of about 637 million KWD.

The decline in ATM cash withdrawals is largely attributed to the rapid adoption of electronic payment systems. Government departments, businesses, and other entities have been increasingly utilizing point of sale systems and online payment platforms to facilitate transactions, providing a more convenient alternative to traditional cash payments.

Various government departments have implemented online payment systems via their official websites, enabling residents to pay for services and transactions digitally. This shift has greatly reduced the need for cash withdrawals, contributing to the overall decline in ATM usage.

The shift towards digital payments is expected to have long-term positive effects on the economy, promoting greater financial transparency and efficiency in payment systems.

With the increasing reliance on digital payments, it is anticipated that the trend of declining ATM withdrawals will continue in the coming years. The Kuwaiti government and private sector entities are likely to expand their digital payment offerings to meet the growing demand for convenience and security in financial transactions.

As Kuwait continues to embrace technology, the role of cash in everyday transactions is expected to decrease further, with digital systems playing a central role in the country’s financial ecosystem.