The Central Bank of Oman issues new regulations governing Buy Now, Pay Later (BNPL) services, establishing a formal framework for licensing, consumer protection, and fintech oversight in the Sultanate.
The Central Bank of Oman (CBO) has issued a regulation governing the practice of Buy Now, Pay Later (BNPL) services, introducing a formal supervisory framework for one of the fastest growing segments of digital consumer finance. The move establishes licensing, compliance, and consumer protection requirements for providers operating within the Sultanate, signaling a broader push to strengthen fintech oversight and financial stability safeguards.
Under the newly introduced framework, BNPL providers will be subject to regulatory approval and operational standards set by the central bank, including capital requirements, risk management protocols, disclosure obligations, and data protection measures. The regulation aims to ensure that installment based digital credit offerings operate within a structured financial services environment rather than in regulatory grey zones that have characterized early stage BNPL expansion in several global markets.
BNPL services allow consumers to split purchases into short term installment payments, typically interest-free, while merchants pay transaction fees to providers. Globally, the model has expanded rapidly over the past decade, led by companies such as Affirm, Klarna, and Afterpay, the latter of which was acquired by Block Inc. for approximately $29 billion in 2022. The rapid scaling of such platforms has prompted regulators in multiple jurisdictions to introduce consumer credit oversight frameworks to address transparency, affordability assessments, and potential over indebtedness risks.
In the Gulf region, regulatory approaches to BNPL have varied. The Saudi Central Bank (SAMA) previously introduced licensing requirements for BNPL providers, while the Central Bank of the United Arab Emirates has also moved to supervise digital lending models under broader fintech regulations. Oman’s latest action aligns it with regional peers seeking to balance fintech innovation with consumer protection and systemic stability.
The CBO’s regulation is expected to clarify permissible business models, set compliance timelines, and define reporting obligations for operators offering installment based payment solutions. Industry participants typically face requirements related to creditworthiness checks, transparent fee disclosures, responsible marketing standards, and secure data handling procedures.
BNPL adoption in the Middle East has been supported by high smartphone penetration, rising e-commerce activity, and a young consumer demographic increasingly comfortable with digital payment solutions. Market research firms have projected sustained double-digit growth for installment based fintech products across the region, particularly as merchants integrate flexible payment options to boost conversion rates.
By formalizing a regulatory framework, the Central Bank of Oman aims to provide greater legal certainty for both providers and consumers while reinforcing confidence in the country’s financial services ecosystem. As fintech platforms continue to expand across payments, lending, and embedded finance, regulatory clarity is increasingly viewed as a prerequisite for sustainable long-term growth.
