There has been a substantial increase in the number of cashless transactions made across various retail outlets across the country, this was revealed by the Central Bank of Oman (CBO) on Tuesday.
Speaking at a seminar conducted to promote the habit of savings, Tahir bin Salim al Amri, CEO, Central Bank of Oman, said that there has been more than 14 million electronic clearing or the Automated Clearing House (ACH) transactions, with a value of more than RO 9 billion, an increase of 39 per cent in 2021 compared to 2020.
The percentage of ATM cash withdrawals decreased to 19 per cent in 2021, compared to 26 per cent in 2020, while at the same time the payments via cards, including online transactions, increased from 66 per cent in 2019 to 81 per cent in 2021.
According to sources in the banking industry, the pandemic has played a major role in the adoption of digital payments as lockdowns encouraged online purchases.
Speaking to the Observer, small traders are not very enthusiastic on the shift to card payments. “We need some liquid cash to carry out the routine activities of our business. But as the world is moving toward cashless payments, we should accept them for the convenience of customers, said Salim, who runs a grocery store in Maabela.
But for customers, it is a welcome trend as cards and online transactions have become safer and more convenient to use.
From January this year, the cashless payment scheme was rolled out in stages, covering shopping malls, cafes and restaurants, commercial centres, gift markets, jewellery stores, electronic shops, grocery stores, vegetables and fruit sellers, building material shops, and outlets in industrial areas.
Commercial stores figuring in this list must enable cashless payment services in the form of credit card readers, (point of sale) POS terminals, and other facilities.
The Ministry of Commerce, Industry and Investment Promotion said it will ensure facilities required by commercial outlets are provided by local banks and service providers without imposing any cost burden on the business community.
Fees for electronic transactions were regulated by the Central Bank and must not exceed 1.5 per cent of the billed amount where payment is made by credit card. Fees levied on payments made by mobile wallets will be limited to a maximum of 0.75 per cent.
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