The Central Bank of Oman (CBO) has introduced a regulatory framework governing Buy Now, Pay Later (BNPL) services, aiming to promote financial inclusion, encourage innovation in digital finance, and strengthen consumer protection.
The new framework establishes licensing and regulatory requirements for BNPL providers, allowing consumers to purchase goods and services immediately and repay the amount through scheduled instalments over a defined period.
Under the regulations, consumers can access BNPL facilities with a combined spending limit of up to RO1,500 across all licensed service providers, while repayment periods are limited to a maximum of 12 months.
The framework places a strong emphasis on consumer protection by requiring full transparency of all fees and charges. BNPL providers must disclose costs upfront through a clear key facts statement, while hidden fees and penalties for early repayment are prohibited.
According to the CBO, BNPL services are intended to provide short-term financing for the purchase of goods and services through monthly instalments and do not include direct cash financing.
The central bank said the framework is designed to support innovation in the financial sector while ensuring responsible and sustainable market practices. It also aims to enhance trust and transparency by providing consumers with flexible payment solutions under a clear regulatory environment.
The CBO advised consumers to carefully assess their financial commitments before using BNPL services and ensure they can meet repayment obligations. It also encouraged responsible purchasing decisions to maintain financial stability and continued access to financial services.
Source: Fintech News Middle East
