MUSCAT: The pandemic brought about a massive shift to digital payments in the country and according to the data this change in behaviour is unlikely to wane.
A report seen by The Arabian Stories from the Central Bank of Oman (CBO) showed that online payment transactions have more than doubled in 2021, growing by 40.6%.
“The volume of e-payment transactions in Oman has increased by 40.6 per cent in 2021 as compared to 19.2 per cent in 2020 witnessed in 2020,” CBO stated in the report.
Read More
- HH Sayyid Shihab presides over recital of Prophet’s life story at Al Alam Palace
- Oman’s CPA shuts travel agency in Rustaq over failure to deliver promised services
- Oman expands organic farm Yuzu to boost food security and local production
- Oman to host ICESCO delegation in Dhofar to strengthen cultural diplomacy and cooperation
- Dhofar Municipality launches wage support scheme for seasonal Omani workers
The main driver for this growth was the wider spread of e-commerce and further movement away from cash and the rising use of mobile phones.
“With the government focusing on the digital economy as part of the Oman Vision 2040, this shift in behaviour by the consumer is welcoming,” said Robin Sebastian, Business Head at Mesdac Solutions, leading web-based solutions firm in the country. Mesdac has overseen the implementation of many e-commerce platforms in the Sultanate.
“We have done so many payment gateway integrations for both public and private sector firms in the last year. This itself shows that contactless payments have dramatically increased in Oman,” Sebastian noted. “Now that there are more firms providing payment gateway solutions, it has also eased the methods,” he added.
This shift was further fueled by the lockdown periods that came as a measure to inhibit the pandemic spread. According to the report, transaction volume via e-commerce and point of sale (POS) grew at a historical rate of 78.7% and 47.9% during 2021 and 2020, respectively.
Cashless transactions on the rise
The growing adoption of digital payments has contributed to the moderation in the use of cash; this is clearly reflected in the share of E-Payment transactions by volume, where the share of POS increased by 3 per cent at the expense of ATM transactions as people were encouraged to avoid unnecessary cash usage. However, card payment transactions continue to dominate the overall transactions supported by high consumer awareness and government initiatives to promote electronic payments.
It is worth noting that the Ministry of Commerce, Industry and Investment Promotion (MCIP) issued a decision on providing electronic payment services for consumers. Places that sell food items, restaurants and cafes are some of the facilities that are covered under this decision.
