Shift to Digital Payments in Oman: What Only 19% Cash Usage Means for Your Business Strategy
Muscat – Payment habits across Oman are evolving rapidly as more consumers adopt faster and more secure digital payment methods. According to Visa’s third edition of the ‘Where Cash Hides’ report, 64% of Omani consumers now primarily use cards or mobile devices for their payments, marking a significant 15% increase from last year. This trend highlights a clear shift away from cash.
The preference for digital payments is also expanding in categories traditionally dominated by cash. Only 19% of Omani consumers reported using cash for daily purchases, a notable decline from 28% the previous year. This downward trend is evident in key sectors such as petrol stations, local markets, and grocery stores, each witnessing a 10% drop in cash usage.
For routine expenses like petrol, groceries, and public transportation, debit cards have become the preferred payment method. However, cash remains prevalent for peer-to-peer (P2P) transactions, with 69% of consumers still using cash to pay tips. Cash is also commonly used for other P2P payments (35%), property rent (9%), and international money transfers via exchange houses (8%).
Nasser Bdeir, Visa’s Country Manager for Oman, commented, “We are observing a clear transformation in how people choose to pay in their daily lives, with cash gradually being replaced by card-based payments. This change reflects growing consumer confidence in digital payment methods and evolving expectations for quick, convenient, and secure transactions. When digital payment solutions meet these needs, they naturally become the preferred choice.”
Visa’s research underscores that Omani consumers increasingly prefer digital payments for their convenience, enhanced security, and rewards. Debit and credit cards offer greater safety by eliminating the risks associated with carrying physical cash and provide seamless online and in-store transaction capabilities. They also offer instant transaction records, helping consumers better manage their finances. Mobile payments further enhance security through tokenization, which protects sensitive card information by substituting it with unique digital identifiers, preventing the exposure of actual card numbers.
In addition to convenience and security, credit cards provide added value through rewards programs, cashback offers, and travel or lifestyle benefits—features that consumers expect whether spending locally or abroad.
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The rapid shift towards digital payments, with 64% of Omani consumers moving away from cash, signals a transformative opportunity for businesses to adopt and integrate fast, secure payment technologies to meet evolving consumer preferences. Smart investors and entrepreneurs should capitalize on the growing demand for seamless, convenient, and reward-driven digital payment solutions, while also recognizing the residual cash use in P2P and rent payments as niches for targeted fintech innovation. Embracing this trend is crucial to staying competitive and relevant in Oman’s increasingly cash-light economy.
