Fintech Innovation: BENEFIT and KFH–Bahrain roll out Digital Direct Debit through BenefitPay
BENEFIT has launched a Digital Direct Debit service through the BenefitPay app, a move billed as accelerating fintech innovation in Bahrain’s payments system by replacing paper mandates with instant, digitally verified activations.
BENEFIT delivers instant mandate activation through BenefitPay
BENEFIT, described in the announcement as the Kingdom’s innovator and a leading company in Fintech and electronic financial transactions service, said the new Digital Direct Debit service is available through the Fawateer channel on the BenefitPay app. The service enables instant activation of mandates without manual processing or delays and runs on secure digital channels that rely on verified customer credentials to reduce fraud risks.
the service is powered by an API-based interface that connects billing and invoicing systems with customer-facing apps, and that it supports automated reconciliation and integration with Enterprise Resource Planning systems. BENEFIT also noted the system enables the automation of accounting processes through ISO 20022, the international standard for exchanging financial data between financial institutions.
KFH–Bahrain completes certification for EWA direct debit
Kuwait Finance House – Bahrain (KFH–Bahrain), described as one of the leading Islamic banks in the Kingdom, announced it had completed the full certification process for the Electricity and Water Authority’s Direct Debit service in cooperation with BENEFIT. KFH–Bahrain said it is the first bank in Bahrain to complete this certification.
The certified service links customers’ bank accounts with the BenefitPay app so they can complete a Direct Debit agreement with the Electricity and Water Authority (EWA) and then review and approve the mandate authorisation inside the BenefitPay app. KFH–Bahrain said the system will reduce reliance on previously adopted manual approvals and provide a fully digital experience built to the highest security and quality standards.
How the services change billing and collections
Both announcements emphasised operational gains: the Digital Direct Debit automates authorisation and collection processes, reduces reliance on manual data entry and lowers administrative costs while minimising human error. BENEFIT highlighted that automated collections processed on due dates will help companies strengthen cash-flow management, and that customers will gain greater flexibility in managing mandates.
BENEFIT also framed the move as environmentally positive, describing the model as fully paperless, and positioned the service as an enabler for Open Banking, Open Finance, embedded finance and account-to-account (A2A) payments — a foundational step towards what the company described as the concept of smart money and more connected payment infrastructures.
Leadership comments and bank strategy
Mr. Abdulwahed AlJanahi, Chief Executive at BENEFIT, said the company is proud to continue strengthening Bahrain’s electronic payments ecosystem through the Digital Direct Debit service, calling it a significant milestone in the development of streamlined payment and settlement services across the Kingdom. He added that the initiative reflects BENEFIT’s drive to deliver innovative and secure solutions that respond to market needs and support the transition towards a digital economy, and that it aligns with the Central Bank of Bahrain’s directives aimed at enhancing digital payments infrastructure, improving efficiency and transparency, and reinforcing Bahrain’s standing as a leading centre for Fintech innovation and excellence.
Mr. Samih Abutaleb, Deputy Group Chief Executive Officer – Technology & Operations at KFH–Bahrain, said the bank is delighted to collaborate with the Electricity and Water Authority and BENEFIT in the launch of the Direct Debit service through BenefitPay, calling it a significant step forward in simplifying financial services and enhancing daily convenience. He added that the initiative marks an important milestone in the bank’s digital transformation journey, provides a secure, flexible and reliable payment experience while reducing traditional procedures, and supports the Kingdom’s drive towards digitisation and streamlining of financial services in line with the bank’s approach based on beyond horizons.
KFH–Bahrain stated the development reflects its commitment to offering innovative solutions that simplify customers’ everyday lives and strengthen the efficiency of financial and governmental services, and said the milestone continues to strengthen the bank’s position as a leader in developing advanced banking solutions while reaffirming its commitment to working with strategic partners to elevate customer experiences.
Fintech Innovation and what customers should do next
Customers wishing to use the Direct Debit option for electricity and water bills will complete a Direct Debit agreement with the Electricity and Water Authority and then review and approve the mandate authorisation through the BenefitPay app. The organizations said the change will reduce manual approvals and provide a streamlined digital approval process.
The KFH–Bahrain release carried a standard disclaimer that the press release content was provided by an external third party, presented on an "as is" basis and not edited, and that the distributing website does not guarantee accuracy or endorse the views expressed. The BENEFIT announcement also invited readers to sign up for a weekly newsletter for industry updates.
customers can begin setting up Direct Debit agreements with the Electricity and Water Authority through the BenefitPay app and review their mandate authorisations there as the immediate next step.
