New service enables instant, secure, paperless recurring payments, supporting Bahrain’s fintech strategy and improving efficiency for businesses and customers alike.
The Digital Direct Debit service is now available via "Fawateer" through the BenefitPay app, according to BENEFIT, the Kingdom's innovator and leading provider of fintech and electronic financial transaction services. The introduction provides a more advanced, secure, and efficient approach for managing recurring financial commitments, marking a major advancement in Bahrain's ongoing digital payments transition.
This is in line with the Central Bank of Bahrain's directives to strengthen Bahrain's standing as a premier regional center for FinTech and digital payment innovation. The Digital Direct Debit service offers an advanced substitute for conventional paper based processes, allowing mandates to be activated instantly without the need for delays or manual procedures.
Delivered through secure digital channels that rely on verified customer credentials, the service enhances security and reduces fraud threats commonly related to conventional methods. By automating authorization and collection processes, decreasing the need for manual data entry, cutting administrative expenses, and limiting the possibility of error by humans, the service improves operational efficiency for beneficiary entities. Through automated collections that are handled on time, it also helps companies improve their cash flow management.
By using a completely paperless digital paradigm, Digital Direct Debit promotes environmental sustainability while providing customers with a simple and easy payment experience. The service is a key pillar and catalyst for innovation in the domains of FinTech, open banking, open financial services, integrated finance, and account-to-account (A2A) payments. It is a crucial step in the transition to the concept of smart money. By doing this, it helps Bahrain's financial ecosystem develop toward more intelligent and interconnected payment systems.
The service is powered by an API based interface that links customer-facing apps with billing and invoicing systems, facilitating smoother payment procedures. Also, it supports automated understanding and connection with Enterprise Resource Planning systems, giving customers more freedom in managing their mandates. Furthermore, it facilitates the automation of accounting procedures by means of ISO 20022, the global standard for financial data interchange among financial institutions.
