The Sultanate of Oman is seeing a rapid transformation towards a digital economy, driven by the significant expansion in the use of digital payment methods, which have become a key component of daily commercial and consumer activities. Trade activity has recorded notable growth, contributing to an increase in purchasing power, supported by the development of e-commerce infrastructure and digital services. The continued growth in digital payment indicators reflects rising confidence in modern technological solutions and an increasing reliance on electronic channels to complete financial transactions, in line with digital transformation goals and efforts to enhance the efficiency of the national economy.
Recent data shows a significant increase in the use of digital payment methods during 2025, amid the rapid development of e-commerce infrastructure and financial technologies, as well as the expansion of digital banking services. This upward performance reflects growing commercial activity and an increasing pace of electronic transactions across various sectors, enhancing the flexibility of the business environment and reinforcing the position of financial technology as a key driver of economic growth.
Experts believe that digital payments are no longer merely an alternative to cash, but have become a fundamental pillar in supporting e-commerce and developing local markets, due to the speed, security, and ease they provide in executing transactions. They have also contributed to expanding opportunities for small and medium enterprises (SMEs) to enter the digital economy and reach broader segments of consumers, thereby enhancing competitiveness and supporting economic diversification efforts.
According to data from the Central Bank of Oman, the value of transactions processed via local digital payment gateways reached approximately RO 3.2 billion in 2025, recording a growth of 76.3% compared to 2024, while transactions rose to over 168 million, an increase of 150%.
The value of transactions executed through point-of-sale (POS) terminals exceeded RO 7.5 billion, recording growth of 33.2%, while QR code payment transactions recorded the highest growth rate among digital payment methods at 133.5%, reaching approximately RO 8 million, equivalent to nearly three times their levels recorded in 2024.
Accelerating flow of money
Dr. Rajab bin Ali Al Owaisi, Social and Educational Studies Expert at the State Council, affirmed that the rapid growth in the use of digital payment methods in the Sultanate of Oman, alongside institutional efforts in monitoring, evaluation, and oversight, clearly reflects the success of national policies aimed at digital transformation and the development of modern economic infrastructure, in line with the strategic directions of Oman Vision 2040.
He explained that, from an economic perspective, digital payments have contributed to accelerating the flow of money and reducing reliance on cash, which has positively impacted the efficiency of commercial transactions and reduced operational costs for individuals and institutions. They have also enhanced the speed of financial operations and improved the efficiency of economic cycles. He noted that this ecosystem has contributed to providing accurate data on economic activity, as reflected in national statistics and planning reports, supporting economic decision-making based on greater accuracy and transparency.
From a social perspective, he said that the widespread adoption of digital payments reflects a notable development in digital awareness among Oman’s society and increased confidence in technological solutions and e-services. He pointed out that these methods have become part of the daily behaviour of both Oman’s consumers and residents, whether for shopping, bill payments, or accessing government and private sector services. This has contributed to saving time and effort, reducing waiting times, and improving the quality of daily life.
Qualitative institutional transformation
In the same context, Al Owaisi added that the continuous rise in digital payment volumes represents a qualitative transformation in the institutional journey towards achieving the goals of Oman Vision 2040, particularly in light of the governance frameworks and legislation supporting digital transformation. He explained that this growth is not limited to quantitative indicators, but also reflects a deep and sustainable shift in consumer behaviour, with Oman’s consumers becoming more inclined to rely on bank cards and smart applications to conduct their daily transactions.
Al Owaisi highlighted that this transformation is linked to increased financial and digital literacy among individuals, as well as greater awareness of the importance of documenting financial transactions, whether purchases, payments, or transfers, while maintaining accurate electronic records that can be referred to when needed. This enhances consumers’ legal and financial protection. Individuals have also become more capable of tracking their expenses and managing personal budgets through modern banking applications, representing a qualitative advancement compared to traditional reliance on cash, which may lack accurate tracking and increase the possibility of unregulated spending.
He affirmed that e-payments represent one of the key drivers of e-commerce growth and the development of local markets, as the availability of secure and easy-to-use payment methods enhances consumer confidence in online purchases and directly supports the expansion of digital stores and platforms. They also enable SMEs to enter digital markets and reach wider customer segments, while strengthening entrepreneurs’ confidence and encouraging young people to launch their own ventures within a more organised and transparent environment.
He also noted that digital payments have contributed to reducing certain unregulated practices associated with cash transactions, such as difficulties in documenting daily income or the possibility of misappropriation, in addition to enhancing financial transparency within commercial activities. The use of approved payment methods provides consumers with clear proof of transactions and gives them greater ability to submit complaints and claim their rights, compared to some unregulated personal transfers.
Knowledge and innovation-based economy
Al Owaisi explained that the digital payment ecosystem clearly embodies the goals of Oman Vision 2040, which focuses on building a knowledge-based economy driven by innovation and technology. He noted that the digital economy fundamentally relies on an advanced and secure electronic payment infrastructure that enables individuals and institutions to conduct transactions with high efficiency and flexibility, which is provided by modern payment systems in the Sultanate of Oman.
He added that this ecosystem supports the transition towards digital government services, reduces routine procedures, and enhances operational efficiency across various sectors, contributing to an improved business environment and increased investment attractiveness. It also promotes digital culture among individuals and institutions and reinforces the adoption of technological solutions in daily life, representing one of the key pillars in Oman’s national transformation towards a more competitive and sustainable economy.
Challenges and sustainability of growth
Al Owaisi said that despite the achievements made in the digital payments sector, sustaining this growth requires addressing several key challenges, foremost among them strengthening cybersecurity frameworks, developing electronic protection systems, and raising awareness of the risks associated with fraud and financial data theft.
He stressed that trust is the most important factor in the success of any digital payment ecosystem, and that any breaches or fraudulent practices could negatively affect this trust, requiring continuous efforts to strengthen digital security infrastructure. He also highlighted the importance of expanding financial and digital literacy among various segments of society, starting from early educational stages, to ensure the development of a generation capable of using modern payment methods safely and responsibly.
He pointed out the existence of some unregulated commercial practices that require greater oversight and monitoring, such as some establishments requesting customers to transfer purchase amounts to personal accounts instead of using official payment systems, or the failure of some businesses to provide electronic payment devices, particularly in several service sectors. He emphasised that such practices represent a genuine challenge requiring stricter supervision and ensuring that all establishments provide approved electronic payment methods, as this is a fundamental consumer right and a direct responsibility of business owners, whether citizens or residents.
Qualitative transformation in digital payment ecosystem
Dr. Essam bin Hussein Al Lawati, academic and researcher in marketing, innovation, and entrepreneurship at the University of Technology and Applied Sciences in Muscat, affirmed that the Sultanate of Oman is seeing a rapid qualitative transformation in its digital payment ecosystem, extending beyond the technological dimension to reflect deeper shifts in the economic structure and social behaviour. He noted that this development requires a balanced assessment of the different aspects of this transformation.
He explained that this shift has contributed to enhancing financial inclusion, accelerating the movement of money, documenting transactions, and reducing the informal economy, thereby supporting economic efficiency and transparency while providing more accurate data for economic decision-making.
He noted that the widespread adoption of digital payments reflects changes in individuals’ financial behaviour; however, it also introduces challenges related to the “disappearing pain of payment”, which may contribute to increased consumerism and requires greater digital financial literacy.
Al Lawati explained that this transformation has reshaped business models, making multi-channel commerce a necessity. It has also led to the emergence of models such as “Buy Now, Pay Later” and embedded finance, which contribute to stimulating markets but require regulatory frameworks to protect consumers and manage risks, alongside supporting small enterprises in keeping pace with digital transformation.
He affirmed that the digital payment ecosystem represents a key pillar in achieving the goals of Oman Vision 2040 by supporting the digital economy, facilitating government services, enhancing the business environment, and empowering entrepreneurship.
He added that this transformation supports income diversification by strengthening tourism, trade, and investment, while shedding light on the need to develop national capabilities in financial technologies and cybersecurity to ensure sustainable growth.
He noted that the future of the sector depends on three possible paths: institutional maturity, unbalanced growth, or achieving regional leadership. He stressed that sustainability relies on financial awareness, proactive regulation, and enhanced cybersecurity.
Accelerating economic and social transformation
Dr. Ali Hussein Tarhini, Associate Professor in the Department of Information Systems at Sultan Qaboos University, explained that digital payments in the Sultanate of Oman are no longer an additional option but have become an essential part of daily life. He noted that this transformation is evident across various commercial activities, with electronic payments now widely available in shops, cafés, and local markets across all governorates.
He stated that this transformation has improved trade efficiency and accelerated the flow of money, while enabling small and medium enterprises to integrate into the digital economy at a lower cost compared to traditional models. This has strengthened growth and expansion opportunities for these enterprises, particularly amid the growth of e-commerce and digital platforms.
He affirmed that Oman’s society has become more confident in modern technologies, particularly among young people, as speed and convenience have become essential elements of the consumer experience rather than merely additional benefits. He added that this transformation is no longer limited to major cities but is extending to various governorates and social segments, reflecting the expanding adoption of digital solutions.
Supporting trade and financial inclusion
Tarhini said that digital payment systems have directly contributed to the growth of e-commerce by providing a smooth and secure payment experience, encouraging consumers to increasingly adopt online shopping. They have also supported startups and small businesses, including home-based enterprises, which have found digital solutions an effective means of expanding their operations and reaching new customers.
He noted that this development has also influenced the nature of the local market, where diverse payment options have become an essential part of the modern shopping experience and a key factor in competitiveness among businesses. It has also strengthened consumer confidence in electronic transactions and reduced reliance on cash, enhancing market flexibility and responsiveness to economic changes.
He emphasised that digital transformation in payments represents a fundamental pillar in supporting financial inclusion and economic transformation in the Sultanate of Oman, noting that the success of this journey depends not only on technology but also on the ability of society and institutions to adopt an integrated digital culture that makes innovation and flexibility the foundation for future economic development.
