Mobile Payments Revolution in Oman: How Apple Pay and Samsung Pay Will Transform Your Business Operations
Following the introduction of card tokenization guidelines in 2023, both international and local payment applications, such as Samsung Pay and Apple Pay, have launched in Oman.
As detailed in the Central Bank of Oman’s annual report, these applications enable users to make payments conveniently using smartphones and smartwatches, eliminating the need to carry physical cards. Samsung Pay was launched at the end of April 2024, while Apple Pay followed in September 2024.
The report indicates that approximately 51.89 million transactions were executed through digitized cards, culminating in total payments of around RO342 billion.
Apple Pay has emerged as the dominant player in this market, accounting for 93 percent of transaction volume and 92 percent of their total value. On the other hand, Samsung Pay, despite its earlier launch, captured only 7 percent of transaction volume and 8 percent of total value.
Card tokenization has facilitated innovative electronic payment methods, reduced dependence on cash, enhanced transaction security, and fostered a streamlined payment experience. This aligns with the national digital transformation program and the e-commerce strategy.
Transaction volumes at Point of Sale (POS) and through payment gateways reveal that debit cards dominate the active card market, amassing 584.7 million transactions in the past year. Credit cards followed, with 30.7 million transactions, while prepaid cards trailed with just 3.4 million transactions.
Debit cards recorded the highest monetary value, totaling RO7.133 billion, whereas credit cards generated RO1.130 billion, providing various financial advantages. Prepaid cards, the least utilized, contributed only RO0.031 billion.
The total number of cards in circulation reached 4,963,116, with active utilization varying throughout 2024 based on adoption rates and intended use by individuals and institutions. Notably, debit cards made up the bulk of this usage, with 4.6 million active cards—93 percent of the total—highlighting their convenience for daily transactions.
Credit cards saw an active count of 239,300, equating to 5 percent of total cards, boosted by attractive bank offerings and ongoing promotions. Meanwhile, the active prepaid card count stood at 93,000—2 percent of the total—primarily used for shopping, fuel purchases, and everyday transactions.
The Mobile Payment Clearing and Switching System (MPCSS) supports instant payments and offers three beneficiary identification methods: Mobile Number, Alias Name, and QR Code. Each method serves distinct transactional needs, as illustrated in the accompanying chart.
Person-to-Person (PPP) transactions experienced remarkable growth, increasing from 40.55 million in 2023 to 169.36 million in 2024. Correspondingly, the value of these transactions rose from RO1.718 billion to RO5.558 billion, making this category the largest segment within the mobile payment system and reflecting its increasing acceptance by individual users across various banks.
Person-to-Business transactions also saw significant growth, escalating from 56,230 in 2023 to 190,900 in 2024. Their value surged from RO0.858 million to RO2.03 million, underscoring the growing reliance on digital payments for commercial transactions and the expanding acceptance of mobile payment solutions in business settings.
Special Analysis by Omanet | Navigate Oman’s Market
The launch of card tokenization and payment applications like Apple Pay and Samsung Pay is a significant step towards digital transformation in Oman, presenting businesses with an opportunity to enhance payment efficiency and security. As consumer preference shifts towards cashless transactions, smart investors should capitalize on this trend by investing in digital payment solutions and technologies that support seamless payment experiences. Conversely, the rapid rise of mobile payment platforms poses risks for traditional banking models, urging entrepreneurs to adapt swiftly to remain competitive in the evolving landscape.
