New BNPL Regulations: What They Mean for Instalment Financing and Business Growth in Oman
MUSCAT, FEB 23 — Ahmed bin Jaafar al Musalmi, Governor of the Central Bank of Oman, has issued new regulations governing the implementation of “Buy Now, Pay Later” (BNPL) schemes in the Sultanate. This initiative aims to integrate Omani consumers into a global BNPL market forecasted to expand from $28.44 billion in 2026 to nearly $83.36 billion by 2034.
The regulations seek to enhance financial stability by eliminating unregulated practices in short-term consumer financing. By imposing capital and collateral requirements, the rules minimize the risk of abrupt bankruptcy and safeguard consumer rights.
BNPL activity involves licensed entities offering short-term, collateral-free financing to customers for purchasing goods and services via monthly instalments, which are repaid on agreed dates.
The decision mandates that engaging in BNPL services requires a license issued exclusively to legal entities incorporated in Oman, either fully Omani-owned or with foreign shareholders in permitted proportions.
Applicants must submit an economic feasibility study featuring a strategic vision, financial forecasts for the first five years, a detailed business plan, and agreements with licensed banks, payment service providers, or goods and service suppliers where relevant.
The regulations empower the Governor to grant exceptions to certain licensing conditions when a business model aids underserved populations lacking access to banking services or promotes BNPL availability in remote regions.
Licensed entities must commence operations within six months of obtaining a license, while establishing branches requires prior Central Bank approval. The rules set forth clear obligations including verifying clients’ financial solvency and creditworthiness, ensuring repayment capacity, maintaining transparent transactions with proper documentation, and handling customer complaints promptly.
Importantly, BNPL services are prohibited for individuals under 18 years old, clients outside Oman, or transactions in currencies other than the Omani Rial.
Licensees must not exceed lending limits of ten times their paid-up capital, engage in unauthorized business activities, launch new products without approval, or advertise misleading offers.
A financial guarantee is also required, set at RO 10,000 or 2% of the paid-up capital—whichever is higher—with a maximum cap of RO 100,000.
These regulations mark a significant step toward structuring the BNPL sector in Oman, promoting consumer protection and sustainable financial services growth.
Special Analysis by Omanet | Navigate Oman’s Market
The Central Bank of Oman’s new regulations on Buy Now, Pay Later (BNPL) schemes create a robust, transparent framework that mitigates financial risks and fosters consumer protection in the growing short-term finance sector. For businesses, this is a significant opportunity to tap into the rising consumer credit market while ensuring compliance and building trust. Smart investors and entrepreneurs should now focus on developing innovative, compliant BNPL offerings that target underserved populations and remote areas to capitalize on this expanding market.
