The increasing use of smartphones and internet banking has created a strong foundation for digital payments in Oman. Quick Response (QR) code-based payment systems eliminate the need to carry cash or use physical cards, making transactions faster, simpler, and more convenient.
By enabling customers to make payments through a simple smartphone scan, QR-based payments have transformed everyday transactions in many countries. Recognising these benefits, Oman introduced QR code-based payments in 2019 as part of its digital transformation efforts under ‘Oman Vision 2040’, promoting a more efficient, secure, and cashless economy.
One of the greatest advantages of QR-based payment systems is their affordability for businesses. Unlike traditional point-of-sale (POS) terminals, QR codes require no investment and are easy to implement.
Small and medium enterprises (SMEs), neighbourhood stores, market vendors, cafés, home-based businesses, and service providers can readily accept digital payments without significant infrastructure costs. This enables businesses of all sizes to participate in the digital economy while enhancing customer convenience.
For example, Oman taxi drivers, food delivery personnel etc, often face difficulties in providing change to customers. QR-based payments offer a simple and efficient solution to this everyday challenge.
The Central Bank of Oman (CBO) launched the QR Payments System in November 2019 as part of its upgraded Mobile Payment Clearing and Settlement System (MPCSS). Since its introduction, the platform has experienced remarkable growth in mobile-based payment transactions.
Transaction volumes increased from approximately 195,900 in 2020 to 4.9 million in 2022, 40 million in 2023, and 170 million in 2024. These figures represent a compound annual growth rate (CAGR) of approximately 318 per cent over the period, highlighting the rapid adoption of digital payment services, particularly QR code-based payments, across Oman.
This strong growth reflects increasing consumer confidence, expanding merchant acceptance, and the effectiveness of national initiatives to promote digital financial services and advance the country’s transition toward a cashless economy.
Supporting Oman’s digital transformation, the Mobile Merchant App offered by one of the country’s leading money exchange companies provides several value-added services to merchants. These include cash withdrawals of up to RO 2,000 per day from its branches, enabling merchants to meet urgent cash requirements, particularly during bank holidays and outside normal banking hours.
The application also offers an auto-sweep facility, whereby wallet balances exceeding a pre-set limit are automatically transferred to the merchant’s bank account, improving liquidity management.
To address the practical challenge of confirming successful payments, the company has also introduced a ‘Sound Box’ device —the first of its kind in Oman. The device announces, in either English or Arabic, that payment has been received, allowing merchants to serve customers confidently during busy periods without repeatedly checking their mobile phones.
In addition, merchants can use dynamic QR codes, where the payable amount is automatically generated and embedded in the QR code. Unlike static QR codes, which require customers to manually enter the payment amount, dynamic QR codes eliminate billing errors and improve transaction accuracy.
To further encourage digital payments, the Central Bank of Oman has since announced a reduction in charges for local payment transactions. Among the key initiatives is the capping of the Merchant Service Fee (MSF) for QR payments at 0.50 per cent of the transaction value, subject to a maximum charge of RO 2 per transaction.
This significantly reduces transaction costs for merchants and provides an added incentive to adopt digital payment solutions.
Security is another major advantage of QR-based payment systems. Modern platforms are protected through encryption, secure authentication, and multi-factor verification. Businesses benefit from reduced cash handling, lower operational risks, and improved efficiency. For consumers, the financial risk is generally limited to the funds available in their mobile wallets. In contrast, fraudulent use of credit or debit cards may expose users to substantially higher financial losses if adequate safeguards are not in place.
To accelerate adoption, banks, payment service providers (PSPs), merchants, and government agencies should collaborate to raise awareness of the benefits of QR-based payments. Countries such as India, China, Singapore, and Thailand have demonstrated how QR payment systems can revolutionise commerce by making digital transactions accessible to millions of people. While Oman is making significant progress, it can also draw valuable lessons from these successful models while developing a payment ecosystem that reflects its own economic priorities and cultural context.
In short, by embracing QR-based payments, Oman can accelerate digital transformation, improve economic efficiency, and move confidently towards a smarter, more connected future in line with the aspirations of ‘Oman Vision 2040’.
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