CBO Issues New Guidelines for ‘Buy Now, Pay Later’: What It Means for Your Business in Oman
The Central Bank of Oman (CBO) has introduced a regulation to govern the “Buy Now, Pay Later” (BNPL) service, aiming to establish essential controls and procedures that ensure the service is provided in a disciplined and transparent manner.
According to the CBO, the BNPL service is a modern financing model that allows consumers to acquire goods or services immediately and pay for them in installments over an agreed period. With the rising adoption of this model, the Central Bank emphasized the importance of a clear regulatory framework to balance financial innovation, protect consumer rights, and maintain financial stability.
The regulation applies to all institutions licensed by the CBO to offer BNPL services. It outlines key requirements, including licensing procedures, capital adequacy standards, transparency and disclosure obligations, risk management frameworks, and consumer protection measures.
While the BNPL concept has traditionally been provided under banking services by banks, finance, and leasing companies, its popularity has surged globally, particularly among fintech companies. These digital-native providers offer an easy, customer-friendly self-service experience, driving the rapid growth of BNPL worldwide.
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The Central Bank of Oman’s new BNPL regulation signals a strategic move to balance innovation with consumer protection, creating a more secure environment for fintech growth. For businesses, this opens up opportunities to leverage BNPL as a competitive payment solution, while smart investors should consider fintech ventures aligned with these regulatory standards to mitigate risks and capitalize on Oman’s evolving digital finance landscape.
