The new system allows for smooth interoperability between various banking systems and applications and smartphone e-wallets offered by banks and payment service providers in Oman.

Oman’s monetary authorities have introduced a new system for clearing e-payment via smartphones, which experts said is part of an effort to reform the financial system and strengthen its role in the economy.

The Central Bank of Oman announced the initiation of the advanced e-payment system in line with the government’s vision to boost e-payments in the country by upgrading and modernising it with additional payment services and benefits.

“The updated mobile payment clearing platform provides an easy, secure and cost-effective payment mechanism in the country,” the bank’s CEO Tahir bin Salem al-Amri was quoted as saying. “We believe it will contribute significantly to transforming the sultanate into a less cash-intensive society.”

The predominance of cash transactions leads to economic and social inefficiencies and entails a high cost for companies, financial institutions and even the state budget.

The new system allows for smooth interoperability between various banking systems and applications and smartphone e-wallets offered by banks and payment service providers in Oman. To achieve simple processing of payments, the Central Bank has used standardised system specifications and QR code standards for mobile payment.

The service has become mandatory for use in all banks and payment service providers. By using smart banking and e-wallet applications, consumers can make a variety of payments without having to use cash.

The Central Bank said the system allows person-to-person transfers, person-to-business payments and person-to-government payments, using a mobile phone number or a user name or by scanning a QR code and completing the transfer and payment process quickly.

The system is expected to enable the country’s financial institutions, payment service providers, government agencies and the private sector to collect revenue and payments for services and procurement more efficiently.

The Central Bank said it looks forward to using the new system in the coming period as one of the strategic options for making payments in e-commerce transactions.

This is the first electronic payment platform in Oman, introduced two years ago as part of Vision 2040.

Source: https://thearabweekly.com/muscat-launches-advanced-electronic-payment-system