The Central Bank of Oman has issued a new regulation governing the provision of the ‘Buy Now, Pay Later’ (BNPL) service, as part of its broader efforts to strengthen supervisory frameworks, enhance market discipline and keep pace with rapid developments in the financial sector.
This step reflects the Bank’s continued commitment to organizing the service within a structured legal framework and establishing the necessary controls, governance standards and operational procedures to ensure it is conducted in a disciplined, transparent and responsible manner.
The ‘Buy Now, Pay Later’ service is regarded as a modern financing model that enables consumers to obtain goods or services immediately, with payment made in installments over a specified future period in accordance with pre-agreed terms and conditions.
With the growing adoption of this Buy Now, Pay Later model across retail and digital platforms, the need for a clear and comprehensive regulatory framework has become increasingly essential to strike a balance between fostering financial innovation, safeguarding beneficiaries’ rights, mitigating potential risks and promoting overall financial stability.
The provisions of this regulation apply to institutions licensed by the Central Bank of Oman to provide the service. The regulation outlines detailed licensing requirements and procedures, capital adequacy standards, disclosure and transparency obligations, risk management and governance mechanisms, as well as specific responsibilities related to consumer protection and fair treatment.
The issuance of this regulation on Buy Now, Pay Later services reaffirm the Central Bank of Oman’s commitment to overseeing emerging financial services within clear, robust and forward-looking supervisory frameworks. It aims to enhance confidence in the financial sector, support the sustainable growth of digital financial services, strengthen regulatory compliance, and align with the broader economic development objectives of the Sultanate of Oman.
