MUSCAT : Online and mobile banking payments are continuing to grow in the country, while usage of cheques has significantly dropped in the last five years, according to data issued by the Central Bank of Oman (CBO) showed.
The number of cheque payments has decreased notably, going from approximately 4.7 million in 2018 to 3.7 million in 2023. “This decrease clearly indicates the ongoing transition from paper- based payments to digital payment methods,” the CBO stated in its 2024 Financial Stability Report.
Meanwhile, mobile payment usage has witnessed a substantial surge, with transactions increasing by 726 percent and value increasing by 507 percent in 2023. “The convenience and accessibility offered by mobile payment solutions have contributed to this remarkable growth,” the CBO added.
More people opt for cashless payment methods
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The report also showed a significant increase of 30.2 percent in the volume of e-payment transactions, totaling 328.3 million transactions in 2023. “This growth can primarily be attributed to point-of- sale (POS) transactions, which experienced a substantial increase of 40.5 percent. Additionally, transactions conducted through e-commerce platforms saw a growth of 17.2 percent,” the CBO stated.
On the other hand, the volume of ATM transactions declined by 2.2 percent. “This can be attributed to avoiding unnecessary cash usage as more people opt for cashless payment methods,” the CBO informed.
Online retail transactions reached 355.2million
Interestingly, the total volume of retail transactions has experienced an exponential growth of 22.5 percent compared to the previous year. According to the CBO report, in 2023, the number of transactions reached 355.2 million, up from 274.4 million in 2022. Additionally, the value of transactions conducted through retail systems increased by 9.70 percent, reaching a total value of RO 30.2 billion
In contrast, traditional paper-based payment methods like cheques have experienced a decline below the 5-year average, indicating a shift towards digital alternatives. “This decline reflects the ongoing transition from paper-based transactions to more efficient and convenient digital payment options,” the CBO added.
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