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The Central Bank of Oman (CBO) is actively developing a licensing and regulatory framework for Buy Now Pay Later (BNPL) services. This short-term financing option allows consumers to make purchases and defer payment to a future date.
In its 12th Financial Stability Report (FSR) for 2024, the CBO revealed that new regulations for BNPL services have already been approved. The Bank is now seeking public consultation to further refine the licensing and regulatory framework for financial technology entities, aiming to extend microfinance opportunities to individuals with limited access to traditional banking services.
This initiative is part of a broader strategy by the CBO to bolster and develop the fintech sector in Oman, a key component of the National Programme for Digital Economy.
The report also highlights other significant developments, including the forthcoming regulatory framework for Digital Banks, scheduled for release in 2024. This follows the earlier establishment of frameworks for Digital Onboarding, Cybersecurity, and Cloud services.
In addition, the CBO is implementing an Anti-Money Laundering technology tool, STRIX, designed to enhance supervision, compliance, and regulatory oversight.
The Bank is also finalizing an Open Banking framework to facilitate collaboration between banks and third-party payment and financial service providers, aiming to improve consumer experiences.
Moreover, the CBO plans to develop a framework on “Alternate Modes of Finance” based on findings from its current sandbox cohort, as part of its Fintech Regulatory Sandbox system.
In 2022, the fintech industry in the MENA region generated $1.4 billion in revenue, with projections indicating growth to $3.5 billion to $4.5 billion by 2025. The value of digital assets in Oman is anticipated to reach $51.47 million in 2024, according to Eng Ibrahim bin Abdullah al Hosni, Chairman of the Digital Economy and Artificial Intelligence Committee at the Oman Chamber of Commerce and Industry.
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