The Central Bank of Oman (CBO) has issued a regulation governing the practice of the 'Buy Now, Pay Later' (BNPL) service to establish the necessary controls and procedures and ensure it is conducted in a disciplined and transparent manner.
"The 'Buy Now, Pay Later' service is considered one of the modern financing models that enables consumers to obtain goods or services immediately, with payment made in installments over a later period in accordance with pre-agreed terms and conditions. Given the increasing adoption of this model, the need for a clear regulatory framework has become essential to ensure a balance between fostering financial innovation, protecting beneficiaries' rights, and promoting financial stability," the CBO said.
The provisions of this regulation apply to institutions licensed by the Central Bank of Oman to conduct this service.
The regulation also sets out licensing requirements and procedures, capital adequacy requirements, disclosure and transparency standards, risk management mechanisms, and obligations related to consumer protection.
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