Qatar is one of the most progressive Arab countries in the world. The country fully embraces technology in different sectors. A relatively new technology Qatar needs to explore more is blockchain technology.
Payments in Qatar
The payment solutions environment in Qatar exhibits remarkable dynamism. About 90 percent of small and medium enterprises use debit and credit card payments. In 2020, the Qatar Central Bank (QCB) introduced the “Qatar Mobile Payment System” (QMPS), leveraging electronic wallets to enhance the nation’s electronic payment ecosystem. Moreover, the Central Bank standardized QR code usage. This development allows users to conduct transactions via mobile phone QR codes at retail outlets and public transportation hubs. With Qatar boasting a high smartphone penetration rate, further accelerated by the pandemic, banks have overhauled their mobile banking offerings. Presently, many banks in Qatar provide comprehensive mobile banking services and applications.
In Qatar, payment methods include debit and credit cards, bank transfers, money transfer services, and mobile applications. Contactless payment options, such as tap cards and mobile wallets, enjoy widespread popularity among consumers and are widely accepted by merchants.
In March 2023, the Qatar Central Bank (QCB) unveiled the National Fintech Strategy, aimed at incorporating digital advancements such as blockchain, Islamic banking, insurance technology, and education technology. The QCB’s objective with the strategy is to act both as a regulator and facilitator, adapting to emerging fintech models. To operate within the country, both new and existing fintech services are required to obtain a license from the Central Bank. This includes Payment Services Providers (PSPs), “buy now pay later” (BNPL) platforms, and insurance price comparison websites.
What Qatar Stands to Gain from Blockchain Cross-Border Payments
Efficiency
Blockchain technology can streamline cross-border payment processes by eliminating intermediaries. Also, it reduces the time and costs associated with traditional banking systems. Transactions can be settled faster and more efficiently using blockchain-based platforms. Thus leads to quicker fund transfers between countries.
Transparency
Blockchain offers transparency and traceability in cross-border payments by providing a secure and immutable record of transactions. This transparency can help prevent fraud and ensure compliance with regulations.
Cost Savings
Blockchain-based cross-border payment systems can reduce manual processing and significantly reduce costs for businesses and individuals by removing intermediaries. Lower transaction fees and currency conversion costs can make cross-border payments more affordable and accessible.
Financial Inclusion
Blockchain technology has the potential to improve financial inclusion by providing access to cross-border payment services for individuals and businesses that may have limited access to traditional banking services. This can empower underserved populations in Qatar to participate more fully in the global economy.
Trade Facilitation
Blockchain-based cross-border payment systems can facilitate international trade by providing a secure and efficient platform for conducting transactions between buyers and sellers in different countries. Smart contracts can automate payment and settlement processes, reducing the risk of payment disputes and delays.
Final Words
Qatar has a highly technologized payment structure. They use technologies such as debit and credit cards, bank transfers, money transfer services, and mobile applications. Adding blockchain technology into this already booming scene pushes cross-border payments to a new light.
