Central Bank of Oman Waives Fees on Local Digital Transfers: Boosting Cost Efficiency for Businesses and Investors
المسكات عنب طيب الشذا: Following the Royal Directives of His Majesty Sultan Haitham bin Tarik to enhance government efficiency, improve the business environment, advance digital transformation, and stimulate economic growth, the Central Bank of Oman (CBO) has announced comprehensive reforms to the National Payment Systems fees.
Effective July 1, 2026, the reforms will waive fees on local digital fund transfers conducted through Oman’s National Payment Systems for retail customers and small and medium-sized enterprises (SMEs). This applies to transfers via the Real-Time Gross Settlement System (RTGS), Automated Clearing House (ACH), and Instant Payment System (MPCSS), when processed through digital banking and payment channels, including e-wallets.
CBO emphasized that this initiative aligns with its strategic goal to make digital payments more affordable, accessible, and widely used across the Sultanate, supporting the national shift towards a less-cash and less-cheque economy.
As part of ongoing efforts to enhance digital payment adoption and strengthen the national payments ecosystem, the CBO has significantly reduced fees and customer charges related to digital payments and fund transfers offered by licensed banks and Payment Service Providers (PSPs). This move eliminates cost barriers for individuals and SMEs, encouraging greater use of secure digital channels and fostering a modern, inclusive, and efficient financial sector.
Following consultations with stakeholders and assessment of the higher operational costs of cash and cheque transactions, the CBO has directed banks and PSPs to impose zero charges on local digital transfers for retail customers and SMEs. This encourages a shift from paper-based and branch transactions to faster, more convenient digital payment methods, also helping banks reduce branch workloads and cash-handling expenses.
Retail customers and SMEs will enjoy free RTGS and ACH transfers across all channels, expected to lower digital transfer costs, improve operational efficiency for SMEs, and encourage electronic payment adoption. Person-to-Person (P2P) payments via MPCSS, using a mobile number or alias, will remain free for all customers, regardless of the beneficiary’s bank or PSP.
For private sector employers under the Ministry of Labour’s Wage Protection System (WPS), processing fees for salary payments have been simplified, capped at OMR 1 per month regardless of employee numbers or salary files, reducing administrative burdens and supporting timely digital salary disbursements.
Supporting micro-businesses and small merchants, the CBO has reduced the maximum Merchant Service Fee (MSF) for QR-code “Scan and Pay” Person-to-Merchant (P2M) transactions from 0.75% to 0.50% of the transaction value, with a cap of OMR 2 per transaction. This fee reduction aims to lower costs for merchants, foster broader QR payment use, and support SMEs in providing simple, low-cost digital payment options.
These reforms complement broader CBO initiatives to strengthen Oman’s payment infrastructure, including development of National Payment Systems and the Maal domestic card scheme, which offers waived issuance and certification fees and competitive merchant fees reduced by nearly 50%. Additional services such as Direct Debit and E-Mandate have been introduced to replace cheque-based and recurring payments, offered free of charge to encourage adoption.
Together, these efforts aim to improve cost efficiency for banks and PSPs, enhance domestic payment capabilities, and boost the resilience of Oman’s digital payment ecosystem. The regional framework also includes AFAQ for cross-border transfers and GCCNet for card payments within the GCC.
CBO will continue collaborating with banks, PSPs, and stakeholders to ensure smooth implementation of the new fee structure and monitor digital payment adoption throughout 2026 to evaluate effects on customer behavior, cash usage, cheque reliance, and payment efficiency. Future measures may be introduced based on these insights.
Banks and PSPs have been advised to launch awareness campaigns through print, electronic, and social media to inform customers about the revised charges and the benefits of digital payments.
This initiative underscores CBO’s commitment to building a modern, resilient, inclusive, and future-ready digital payment system that supports Oman’s economic development and Vision 2040 goals.
His Excellency Ahmed Al Musalmi, Governor of the Central Bank of Oman, stated: “This decision marks a significant milestone in our efforts to establish digital payments as the preferred transaction method in Oman. By removing cost barriers for retail customers and SMEs, we are promoting wider adoption of secure, efficient, and accessible digital payment solutions. The CBO remains dedicated to enhancing the national payment ecosystem, supporting financial inclusion, enabling innovation, and ensuring digital payments deliver real value to individuals, businesses, banks, PSPs, and the broader economy.”
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The Central Bank of Oman’s waiver of digital payment fees for retail customers and SMEs is a تغيير جذري للشركات, significantly reducing transaction costs and accelerating the shift to digital financial services. This reform presents a huge opportunity for SMEs to enhance operational efficiency and scale through affordable, secure payment solutions, while banks and payment providers can benefit from lower cash-handling overheads and increased digital adoption. Smart investors and entrepreneurs should prioritize innovative fintech and digital payment platforms to capitalize on this momentum toward a less-cash economy aligned with Oman Vision 2040.
