Oman embraces cashless future as mobile payments surge

By Vriti Gothi

Oman is witnessing a shift in how its citizens transact, with mobile wallets rapidly replacing cash across markets, remittances, and everyday spending. According to the Central Bank of Oman, mobile payment transactions surged from 4.9 million in 2022 to 40 million in 2023, marking a 700% jump valued at approximately $3.74 billion.

From bustling souqs in Muttrah to routine bill payments, digital wallets are now embedded into daily financial life. This acceleration reflects not only Oman’s Vision 2040 digital ambitions but also a broader GCC-wide trend toward cashless economies.

However, the shift brings new challenges. Behavioural economists warn of the “cashless effect,” where frictionless payments encourage higher spending. Without the tactile pause of handing over banknotes, consumers risk losing sight of budgeting discipline.

Financial literacy is emerging as a critical balancing factor. While younger, digital-native Omanis are eager adopters, studies show that trust, perceived security, and confidence with technology heavily influence adoption, especially in rural areas. Older generations, meanwhile, face a learning curve in adapting to secure mobile-based systems.

FinTech providers have an opportunity to play a proactive role. Mobile wallets already feature real-time alerts, automated expense categorisation, and goal-setting dashboards tools that could enhance financial control. Yet awareness and education remain limited, leaving many features underutilised.

For SMEs, mobile payments can drive efficiency, but barriers such as high transaction fees and authentication challenges persist. This underscores the need for holistic financial literacy—not only for individuals but also for businesses integrating digital payment systems.

Trust and security will be central to sustaining adoption. Transparent communication on fees, robust fraud prevention, and clear data protection frameworks are essential to build consumer confidence. Regulators, FinTech innovators, and educational institutions alike share responsibility in aligning digital adoption with digital capability.

As Oman accelerates toward a cashless economy, the stakes are clear: digital payments must empower, not endanger, financial stability. Each tap of a mobile wallet is more than just a transaction it is a choice shaping long-term financial behaviour.