Oman announces fee waiver on digital transfer

Oman will remove fees on local digital money transfers through National Payment Systems for retail customers and small and medium-sized enterprises (SMEs), effective from 1 July 2026, as part of a wider effort to boost digital payments and reduce reliance on cash and cheques.

The Central Bank of Oman (CBO) has said that the implementation of reforms to National Payment Systems fees is in line with the Royal Directives of Sultan Haitham bin Tarik to improve the efficiency of government and financial services.

Under the revised procedure, transfers made through the Real-Time Gross Settlement System (RTGS), Automated Clearing House (ACH), and the Instant Payment System (MPCSS), will be free when carried out through digital banking platforms, payment applications, and e-wallets.

CBO said the initiative is aimed at making digital payments more affordable, accessible, and widely used across Oman, while supporting the national transition towards a less-cash and less-cheque economy.

The CBO has also introduced significant reductions in fees and customer charges related to digital payments and fund transfers offered by licensed banks and Payment Service Providers (PSPs).

The Central Bank has directed licensed banks and PSPs to apply zero charges on local digital transfers for retail customers and SMEs.

Person-to-Person (P2P) payments through the Instant Payment System (MPCSS), whether made using a mobile number or alias, will remain free of charge for all customers.

This will apply regardless of whether the beneficiary is with the same bank, another bank or a Payment Service Provider.

For private sector employers operating under the Ministry of Labour’s Wage Protection System (WPS), employers may be charged up to OMR 1 per month for processing salary payment files, regardless of the number of employees, number of salary files, or beneficiary banks.

In support of micro-businesses, small merchants and retailers, CBO has reduced the maximum Merchant Service Fee (MSF) for QR-code-based “Scan and Pay” Person-to-Merchant (P2M) transactions from 0.75 per cent to 0.50 per cent of the transaction value, with a maximum cap of OMR 2 per transaction.

The reform builds on a broader set of CBO initiatives aimed at strengthening Oman’s national payments infrastructure. These include the continuous development of the National Payment Systems and the launch of the Maal domestic card scheme.

CBO has also introduced and enhanced Direct Debit and E-Mandate services as secure and efficient alternatives to cheque-based and recurring payments.

Ahmed Al Musalmi, Governor of the Central Bank of Oman, said that the decision marks an important milestone in CBO’s efforts to make digital payments the preferred mode of financial transactions in Oman.