Kuwaiti banks may fee online transfers to offset digital costs
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Kuwaiti banks are exploring the possibility of imposing fees on online transfers between local banks. This proposal is intended to help offset the costs associated with digital transformation and the growing operational demands.
Currently, online transfers between different banks are offered free of charge, while in-branch transactions incur a fee of 5 dinars, News.Az reports citing foreign media.
Under the new proposal, banks would begin charging fees ranging from 1 to 2 dinars per transaction for interbank online transfers, while keeping existing in-branch fees unchanged for transfers within the same bank. Each bank would set its own rate within the proposed range based on its strategic priorities.
Proponents of the plan argue that the rapid increase in digital transactions, particularly for commercial payments, has placed a significant operational burden on banks, which have yet to monetize these high-volume transactions.
Some industry experts have suggested applying fees specifically to transfers conducted through platforms like "Wamd" or similar services, which process a substantial portion of commercial payments, often reaching the daily transfer limit of 3,000 dinars.
While personal transfers typically involve smaller amounts, the growing reliance on digital payment services has led to a broader shift toward online transactions. Customers have increasingly opted for digital transfers due to their convenience, security, and near-instant processing, making them the preferred method for a wide range of financial transactions.
However, despite widespread support for charging fees on interbank online transfers, the proposal to extend fees to transactions via platforms like "Wamd" has faced pushback. Critics argue that such a move could negatively impact small-scale users, who are difficult to distinguish in high-frequency digital transactions.
The push for fees comes amid rising costs associated with digital transformation, as banks invest heavily in modernizing internal operations and integrating new financial technologies to remain competitive.
News.Az
