Historic Drop in 'Cash' Withdrawals Locally; 20% Decline Expected in Liquid Cash by 2027

- Anti-money laundering decisions, ranging from cash payment bans to higher caps, are turning into tangible figures.

- Banks’ ATM liquidity replenishment recorded a decline compared to the start of the war period.

- The scope of the decline covers all cash withdrawal sources, including bank branches.

- The maturation of digital infrastructure accelerates card payments and contactless collections.

- The backward roll of cash usage sparks debate: Will Kuwait become a cashless society?

Official data for the first nine months of 2026 show a noticeable decline in the number of cash withdrawal transactions, particularly from ATMs, by approximately 9% compared to the same period last year.

Digitally, ATM transaction volumes during this period fell to 45.214 million transactions with a total value of 6.22 billion dinars, compared to 49.123 million transactions worth 6.635 billion in the corresponding period of 2025. This represents a decrease of about 3.908 million transactions, while the value dropped by 6.66%, equivalent to 414.5 million dinars, alongside a recorded surge in non-cash withdrawals.

In this regard, banking sources told "Al-Rai" that banks have recently observed a strong decline in their ATM liquidity replenishment rates compared to the beginning of the war erupted in the region between the US and Iran on February 28 last year, and a significant drop compared to the same period in 2025. This reflects a tangible decrease in individuals' demand for "cash," with the decline affecting all withdrawal sources, distributed across ATMs and bank branches.

Here, some might simply attribute this decline, whether in the number or value of cash withdrawal transactions, to the growing individual demand for digital payment methods. While this is certainly a primary factor, projections by bank officials based on behavioral studies and market trends reveal a new consideration that reinforces the decline in cash payment reliance to historical levels, which are expected to double to 20% next year.

According to the consolidated view of bank officials on this matter, the significance of this percentage reaches levels that open a broader horizon for questioning: What will drive cash withdrawals to further decline in 2027 with a doubled wave in both volume and value? Given this expected significant decline, can it be anticipated that the use of ATM cards will become a thing of the past in Kuwait in the coming years, transforming it into a cashless society?

Alongside the acceleration in non-cash payment and collection processes in favor of the strong presence of cards and contactless payments—reflecting the beginning of digital infrastructure maturity—it has become clear that regulatory decisions taken by the Ministry of Commerce and Industry, in coordination with the Central Bank of Kuwait and relevant authorities, to limit cash transactions in approximately 14 activities, aimed at enhancing financial transparency and combating money laundering, which vary between setting a maximum cap and a complete ban on cash transactions, are turning into actual, growth-capable digital results. This explains bank officials' expectations for a reduction in customers' reliance on "cash" next year.

In this context, it may be useful to highlight the key sectors covered by the ban on the use of cash payment methods by traders. These include the gold, jewelry, precious metals, and gemstones sectors, along with related activities, as well as real estate transactions. Brokers are prohibited from accepting or delivering any cash amounts related to transactions, including earnest money and advance payments. The ban also extends to car and vehicle sales exhibitions and companies, as well as certain commercial exhibitions, including those for perfumes, weddings, and bridal services, in addition to hospitals and government health facilities.

Regarding the imposition of a higher ceiling, cash transactions exceeding 10 dinars are prohibited in five activities. Customers are required to settle amounts exceeding this limit using electronic payment methods. These activities include pharmacies and health institutes, including fitness centers, sports clubs, and men’s, women’s, and children’s salons, as well as medical companies and activities related to the import, export, and storage of public health pesticides, along with hotels.

Additionally, accepting more than 1,000 dinars in financial transfers is prohibited. A higher ceiling for cash payments applies to entities subject to regulations governing the collection of fees for provided health services.