Oman contactless payments market size, share, growth drivers, trends, opportunities & forecast 2025–2030

Oman Contactless Payments Market Overview

• The Oman Contactless Payments Market is valued at USD 1.2 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of digital payment solutions, enhanced consumer convenience, and the rise of e-commerce. The shift towards cashless transactions has been accelerated by the COVID-19 pandemic, prompting both consumers and businesses to embrace contactless payment methods for safety and efficiency. The digital payments landscape in Oman is witnessing robust growth, with a 20 percent increase in digital transaction volumes reported by the Central Bank of Oman, reflecting a strong shift towards cashless payment methods among consumers and businesses alike .
• Muscat, the capital city, is the dominant hub for contactless payments in Oman due to its high population density, extensive retail infrastructure, and the presence of major banks and financial institutions. Additionally, other cities like Salalah and Sohar are also emerging as significant players in the market, driven by their growing urbanization and increasing smartphone penetration among consumers. Smartphone penetration in Oman currently stands at 90 percent, further supporting the expansion of digital and contactless payment adoption across urban and semi-urban centers .
• In 2023, the Central Bank of Oman implemented regulations to promote the use of contactless payment systems, mandating that all new POS terminals must support contactless transactions. This initiative aims to enhance the payment ecosystem, ensuring that businesses can cater to the growing demand for quick and secure payment options, thereby fostering a cashless economy. The regulation is part of broader efforts to modernize the national payment infrastructure and align with international standards for digital transactions .

Oman Contactless Payments Market Segmentation

By Type:The market is segmented into various types of contactless payment methods, including NFC Payments, QR Code Payments, Mobile Wallets, Wearable Payments, Biometric Payments, and Others. Among these, NFC Payments are currently leading the market due to their widespread acceptance and ease of use in retail environments. Mobile Wallets are also gaining traction as consumers increasingly prefer the convenience of managing multiple payment options through their smartphones. The growing trend of digital wallets is reshaping consumer behavior, with a significant shift towards contactless transactions for everyday purchases.

By End-User:The end-user segmentation includes Individual Consumers, Small and Medium Enterprises (SMEs), Large Corporations, Government Entities, and Others. Individual Consumers dominate the market, driven by the increasing preference for contactless payments for daily transactions. SMEs are also rapidly adopting these technologies to enhance customer experience and streamline operations. The growing trend of digitalization among businesses is further propelling the adoption of contactless payment solutions across various sectors.

Oman Contactless Payments Market Competitive Landscape

The Oman Contactless Payments Market is characterized by a dynamic mix of regional and international players. Leading participants such as Bank Muscat, National Bank of Oman, Sohar International, Bank Dhofar, Oman Arab Bank, Ahli Bank, HSBC Bank Oman, Ooredoo Oman, Thawani Technologies, Fatora, PayFort (Amazon Payment Services), Visa, Mastercard, Apple Pay, Samsung Pay contribute to innovation, geographic expansion, and service delivery in this space.

Oman Contactless Payments Market Industry Analysis

Growth Drivers

• Increasing Smartphone Penetration:As of future, Oman has an estimated smartphone penetration rate of 95%, with approximately 4.5 million smartphone users. This widespread adoption facilitates access to contactless payment applications, driving consumer engagement. The World Bank reports that mobile internet subscriptions in Oman have increased by 15% year-on-year, indicating a growing digital ecosystem. This trend supports the shift towards contactless payments, as consumers increasingly rely on their smartphones for financial transactions, enhancing convenience and accessibility.
• Rise in E-commerce Transactions:E-commerce in Oman is projected to reach $1.2 billion in future, reflecting a 20% increase from the previous year. This surge is driven by changing consumer behaviors, with more individuals opting for online shopping due to convenience and variety. The increase in e-commerce transactions directly correlates with the demand for contactless payment solutions, as consumers seek secure and efficient payment methods. The growth of digital marketplaces further supports the expansion of contactless payment adoption across various sectors.
• Government Initiatives Promoting Digital Payments:The Omani government has launched several initiatives aimed at enhancing digital payment infrastructure, with a budget allocation of $200 million for future. These initiatives include the implementation of the National Digital Payment Strategy, which aims to increase the adoption of cashless transactions by 30% over the next three years. Such government support not only fosters consumer trust but also encourages businesses to adopt contactless payment systems, thereby accelerating market growth.

Market Challenges

• Security Concerns Regarding Digital Transactions:Security remains a significant challenge in the Oman contactless payments market, with a reported 25% of consumers expressing concerns about fraud and data breaches. The lack of robust cybersecurity measures can deter users from adopting contactless payment methods. According to the Central Bank of Oman, there were over 1,000 reported cases of digital fraud in recent periods, highlighting the urgent need for enhanced security protocols to build consumer confidence in digital transactions.
• Limited Acceptance Among Small Merchants:Approximately 60% of small merchants in Oman do not accept contactless payments due to high transaction fees and lack of infrastructure. This limitation restricts consumer access to contactless payment options, particularly in rural areas where traditional payment methods remain prevalent. The Ministry of Commerce and Industry reports that only 30% of small businesses have adopted digital payment solutions, indicating a significant gap that needs to be addressed to facilitate broader market growth.

Oman Contactless Payments Market Future Outlook

The future of the Oman contactless payments market appears promising, driven by technological advancements and evolving consumer preferences. As biometric authentication methods gain traction, security concerns may diminish, encouraging wider adoption. Additionally, the integration of artificial intelligence in payment processing is expected to enhance transaction efficiency and user experience. With ongoing government support and increasing digital literacy, the market is poised for significant growth, paving the way for a more cashless society in Oman.

Market Opportunities

• Expansion of Mobile Wallet Services:The mobile wallet sector in Oman is projected to grow significantly, with an expected increase in users from 1 million in recent periods to 2 million by future. This growth presents an opportunity for service providers to innovate and enhance user experiences, driving further adoption of contactless payments. The convenience of mobile wallets can attract a broader consumer base, particularly among younger demographics.
• Partnerships with Fintech Companies:Collaborations between traditional banks and fintech companies are expected to flourish, with over 50 partnerships anticipated by the end of future. These partnerships can facilitate the development of innovative payment solutions, enhancing the overall customer experience. By leveraging fintech expertise, banks can improve their service offerings, making contactless payments more accessible and appealing to consumers.