Bahrain's cards and payments industry recorded healthy growth during the period from 2009 to 2013, according to a Research and Markets report.

Credit transfers and cheque payments were the preferred payment instruments, having a combined industry share of 99.4 per cent in 2013 in terms of transaction value, said a report in the Gulf Daily News (GDN), our sister publication.

The share of payment cards increased from 0.4 per cent in 2009 to 0.6 per cent in 2013, as the government and banks took initiatives to increase benefits and awareness levels among consumers and merchants.

In terms of the number of cards in circulation, Bahrain's payment cards - including debit and credit cards - registered positive growth during the review period, recording a compound annual growth rate (CAGR) of 5.49 per cent, increasing from 830,360 cards in 2009 to one million in 2013.

In terms of transaction value, payment cards reached $3 billion in 2013, after registering a CAGR of 17.37 per cent.

Similarly in terms of transaction volume, payment cards registered a CAGR of 17.69 per cent, reaching 16.1 million in 2013.

The average transaction value (ATV) in Bahrain was $185.3 in 2013, which was higher than Saudi Arabia with $131.3, but lower than other peer countries such as Kuwait, Oman and the UAE.

Kuwait recorded the highest ATV at $319.6, followed by the UAE at $263.1 and Oman at $207.4.

In terms of card penetration, Bahrain recorded 0.80 cards per inhabitant in 2013, while the UAE, Kuwait, Oman and Saudi Arabia recorded 1.96, 1.32, 1.03 and 0.69 respectively.

In terms of frequency of use, Bahrain recorded 15.6 transactions per card in 2013, while Saudi Arabia recorded 95.3, Kuwait recorded 47.7, the UAE recorded 43.1 and Oman recorded 13.4.

Bahrain's eGovernment project set out to promote electronic payments, improve banking infrastructure, introduce Sharia-compliant payment cards, and raise consumer awareness of electronic payments, which were the main factors driving the payment card channel's growth.

The adoption of Europay, MasterCard and Visa standards - as well as growth in the e-commerce and retail sectors - also supported this growth. - TradeArabia News Service