CBO Waives Digital Transfer Fees: What This Means for Individuals and SMEs in Oman
CENTRAL BANK OF OMAN ANNOUNCES SIGNIFICANT FEE REFORMS TO PROMOTE DIGITAL PAYMENTS
Muscat, June 17 – The Central Bank of Oman (CBO) has unveiled a major reform of the national payment system fees, eliminating charges on local digital fund transfers for individual customers and small and medium enterprises (SMEs). The updated fee structure will be effective from July 1, 2026, and applies to transactions conducted through the Real-Time Gross Settlement System (RTGS), the Automated Clearing House (ACH), and the Instant Payment System via digital banking and payment platforms, including e-wallets.
The CBO emphasized that this initiative aims to reduce the cost of digital payments, promote broader use of secure electronic channels, and support Oman’s transition towards a reduced reliance on cash and cheques.
Under these reforms, individuals and SMEs will enjoy free local digital transfers via RTGS and ACH. Additionally, person-to-person payments using the Instant Payment System—whether through a mobile number or alias—will remain free for all users, regardless of the beneficiary’s bank or payment service provider.
For private sector employers utilizing the Ministry of Labour’s Wage Protection System, banks may levy a maximum fee of RO 1 per month for processing salary payment files, irrespective of the number of employees, salary files, or beneficiary banks involved.
The CBO has also lowered the maximum merchant service fee for QR-code-based “scan and pay” transactions from 0.75% to 0.50% of the transaction value, capped at RO 2 per transaction. This reduction is expected to decrease payment acceptance costs for retailers, micro-businesses, and SMEs, thereby encouraging wider adoption of QR payments.
These reforms are part of the CBO’s broader strategy to enhance Oman’s national payment infrastructure, including the development of national payment systems and the introduction of the Maal domestic card scheme. To facilitate market readiness and stimulate use of domestic payment solutions, the CBO has waived several Maal-related fees such as issuance, annual, and certification fees. The Maal scheme also offers merchant service fees nearly 50% lower than those charged by other card schemes.
Furthermore, the central bank has introduced and improved direct debit and e-mandate services as secure digital alternatives to cheques and recurring payments, providing these services free of charge to encourage widespread adoption.
The CBO will continue collaborating with banks, payment service providers, and relevant stakeholders to ensure smooth implementation of the revised fee structure. It will monitor digital payment adoption throughout 2026 to evaluate impacts on customer behavior, cash usage, cheque dependency, and overall payment efficiency.
Banks and licensed payment service providers have been instructed to conduct awareness campaigns across print, digital, and social media channels to educate customers about the fee changes and the benefits of digital payment methods.
Ahmed al Musalmi, Governor of the Central Bank of Oman, described the decision as a significant milestone toward making digital payments the preferred mode for financial transactions in the country.
“By removing cost barriers for retail customers and SMEs, we are encouraging broader adoption of secure, efficient, and accessible digital payment solutions,” he said. He reaffirmed the CBO’s commitment to strengthening the national payment ecosystem, supporting financial inclusion, fostering innovation, and ensuring that digital payments offer substantial value to individuals, businesses, banks, payment service providers, and the wider economy.
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The Central Bank of Oman’s removal of fees on local digital fund transfers for individuals and SMEs, along with reduced merchant fees for QR-code payments, creates a significant opportunity for businesses to lower transaction costs and accelerate digital payment adoption. This reform positions Oman to transition towards a less-cash economy, promoting financial inclusion and operational efficiency, while smart investors and entrepreneurs should now focus on leveraging digital payment technologies and innovative fintech solutions to capture emerging market demand.
