Oman’s New National Payment Card: What It Means for Investors and Businesses in the Digital Economy
Muscat: On Thursday, the Sultanate of Oman officially launched the Maal national payment card, timed with the celebration of Oman’s National Day.
This initiative aims to enhance the national payments framework by lowering costs for banks, merchants, and payment service providers (PSPs), while promoting digital payment adoption across various economic sectors.
The established framework includes a complete waiver of card issuance and reissuance fees by banks and PSPs, along with the elimination of annual fees for cardholders. Consequently, the Maal consumer debit and prepaid cards will be available to customers at no cost. However, ATM cash withdrawal fees and associated charges will continue to follow the existing regulations set by the Central Bank of Oman (CBO).
During the initial phase, banks and PSPs will not incur fees for utilizing the OmanNet infrastructure for issuing and processing Maal card transactions. This aligns with the broader objective of minimizing payment costs throughout the ecosystem.
Key banks, including Bank Muscat, Sohar International, Oman Arab Bank (OAB), and Bank Dhofar, will issue Maal-branded cards.
Ali Al Jabri, Vice President of Payment Systems Technology at the Central Bank of Oman, stated, “The Maal card will be free for consumers, with no issuance or renewal fees, and will offer competitive, reduced fees for merchants and government entities.”
Experts note that current cards issued by local banks utilize global network technologies, which will help lower costs for consumers. The offerings will include debit cards, payment cards, prepaid cards, and credit cards.
Countries such as Qatar, the UAE, and Saudi Arabia have already introduced their own national payment cards. For instance, Qatar’s Himyan card is powered by the Qatar Central Bank and aims to improve and modernize digital payment systems. It offers diverse options for bank customers in Qatar, aligning with the rising demand for financial technology services while bolstering the national brand.
Similarly, the UAE’s Jaywan card presents a local alternative to internationally issued debit and prepaid cards. It allows users to manage their daily finances securely, enabling direct cash withdrawals and purchases from bank accounts.
In Saudi Arabia, the Mada card serves as the national debit card, widely used for transactions, particularly online, reflecting its popularity within the Saudi market.
The launch of the Maal card represents a significant step forward in Oman’s efforts to modernize its payment systems and enhance the ease of digital transactions for its citizens.
Special Analysis by Omanet | Navigate Oman’s Market
The launch of the Maal payment card represents a strategic shift towards enhancing Oman’s digital payment ecosystem, creating an opportunity for businesses to reduce transaction costs and improve cash flow. While this presents a lower barrier for entry into digital finance for consumers and merchants, it also poses a risk for existing providers as they adapt to competitive pricing structures. Smart investors should leverage this momentum to explore partnerships with fintech firms, thus positioning themselves advantageously within the evolving landscape of Oman’s economy.
