Imagine a world where your wallet is obsolete, and your smartphone or smartwatch becomes your go-to payment method. This is no longer a futuristic fantasy but a reality in Oman, where digital payment systems like Apple Pay and Samsung Pay are revolutionizing how people transact. But here’s where it gets controversial: while these platforms promise convenience and security, they also raise questions about privacy and the digital divide. Are we ready to fully embrace this cashless future, or are there hidden pitfalls we’re overlooking? Let’s dive in.
Following the introduction of card tokenization guidelines in 2023, Oman witnessed the launch of global and local payment applications, including Apple Pay and Samsung Pay. According to the Central Bank of Oman’s annual report, these platforms enable users to make payments directly from their smartphones and smartwatches, eliminating the need for physical cards. Samsung Pay debuted in April 2024, while Apple Pay followed suit in September of the same year. Together, these platforms processed approximately 51.89 million transactions, totaling around RO342 billion in payments.
Apple Pay vs. Samsung Pay: The Battle for Dominance
Apple Pay leads the charge, capturing 93% of transactions and 92% of their value, thanks to its widespread popularity. In contrast, Samsung Pay, despite launching earlier, holds only 7% of transactions and 8% of the value. This disparity sparks an intriguing debate: Is Apple Pay’s success a result of superior technology, or does it simply benefit from a more loyal user base? Let us know your thoughts in the comments!
The report highlights that card tokenization has not only fostered innovative electronic payments but also reduced cash dependency, enhanced transaction security, and streamlined the payment experience. Additionally, it aligns with Oman’s national digital transformation program and e-commerce strategy. And this is the part most people miss: while these advancements are impressive, they also underscore the importance of cybersecurity in an increasingly digital economy.
Breaking down the numbers, debit cards dominate the payment landscape, accounting for 584.7 million transactions, followed by credit cards (30.7 million) and prepaid cards (3.4 million). In terms of value, debit cards lead with RO7.133 billion, credit cards follow with RO1.130 billion, and prepaid cards trail at RO0.031 billion. The total number of cards in circulation stands at 4,963,116, with debit cards representing 93% of active cards due to their convenience for daily use.
Credit cards, though less prevalent at 5% of active cards, offer attractive benefits and promotional offers, while prepaid cards, at 2%, are primarily used for shopping, fuel payments, and other routine transactions. But here’s a thought-provoking question: As digital payments grow, will traditional banking methods become obsolete, or will they evolve to coexist with these new technologies?
Oman’s Mobile Payment Clearing and Switching System (MPCSS) supports three beneficiary identification methods: Mobile Number, Alias Name, and QR Code. Among these, Person-to-Person (P2P) transactions have seen explosive growth, surging from 40.55 million in 2023 to 169.36 million in 2024, with their value jumping from RO1.718 billion to RO5.558 billion. This category dominates the mobile payment system, reflecting its widespread adoption. Meanwhile, Person-to-Business transactions grew from 56,230 to 190,900, with their value increasing from RO0.858 million to RO2.03 million, signaling a shift toward digital payments in commercial settings.
As Oman continues to embrace digital payments, the question remains: Are we fully prepared for the challenges and opportunities this transformation brings? Share your opinions below—we’d love to hear your perspective!