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Shoppers are being offered a quick and easy way to pay for goods and services using their smartphones.
The move to a cash and card-less society in Bahrain took a step closer with the launch of a mobile application called BenefitPay that allows users to make or receive payments quickly and securely.
The BENEFIT Company, known as the national ATM and Point of Sale service provider in Bahrain, is licensed by the Central Bank of Bahrain, has developed an ‘Electronic Wallet Payment System’ that can be downloaded for free to any smartphone to be used to send or accept payments.
The system has been divided into two phases and the first was launched at a press conference held last week at the Intercontinental Regency Bahrain. Abdulwahed Janahi, CEO of BENEFIT, described the technicalities of the app and said: “We have good reason to believe that this system will be successful.”
He added that all that was needed to download the app was to create an account, provide a CPR and mobile number and registering a password. The user would be assigned a PIN number and use fingerprint technology to access and authorise BenefitPay.
The company says security can be assured and it will meet international and industry standards.
Similar digital wallets have proved popular around the world with experts suggesting it is the next stage in the evolution of consumer spending and could even signal the end of people using cash in the future. Users can make purchases in seconds with a simple tap or scan of their mobile device.
Mr Janahi also highlighted how the software will use QR codes to facilitate payments during phase one, allowing consumers to purchase items using only their phones. Any customer of a participating bank with BENEFIT can pair their debit card to BenefitPay.
He believes it will streamline branch management, payment tracking and transaction history for merchants, particularly small businesses that do not accept cards.
“BenefitPay will reduce the need for special machines and indeed, physical cash itself,” claimed Mr Janahi. “Now, consumers will be encouraged to spend at these stores and they too will be encouraged to accept BenefitPay if only for the sheer convenience of doing so, effectively accelerating an existing stream of revenue in the economy.”
By December of this year, the second phase of BenefitPay will commence. It will tie in credit cards and accounts allowing customers to use all the Electronic Transfer System services harmoniously to transfer funds and pay bills in seconds.
For merchants to get the application they will need to contact the acquirer bank. The bank will send them log in credentials by email allowing them to set up their virtual branches and then begin using the programme to receive business-related payments over their smart devices through the Appstore/Playstore.
As payment methods move digital, so cash machines will need to develop from the terminals that we have all become used to, experts say.
The main challenge comes from the smartphone. Mobile banking allows customers to check balances, organise transfers, make swift payments between friends in restaurants or pay the local tradesman.
The answer from the industry, it appears, is to make the cash machine more like a smartphone.
For further details, visit www.benefit.bh
