Muscat – Central Bank of Oman (CBO) has issued a regulatory framework governing ‘buy now, pay later’ (BNPL) services as part of its efforts to promote financial inclusion, support innovative financing solutions and strengthen consumer protection.

The framework regulates and licenses BNPL providers, enabling consumers to purchase goods and services immediately and repay the amount through scheduled instalments over a defined period.

Under the regulations, customers can access BNPL facilities with a spending limit of up to RO1,500 across all service providers, while the repayment period is capped at 12 months.

The framework also places strong emphasis on consumer protection by requiring full transparency of fees and charges. Service providers must disclose all costs to customers in advance through a clear key facts statement. In addition, the regulations prohibit hidden charges and early repayment penalties.

According to CBO, the service is intended to provide short-term financing for the purchase of goods and services through monthly instalments and does not include direct cash financing.

The initiative aims to encourage innovation in digital finance while ensuring responsible and sustainable market practices. It is also designed to enhance trust and transparency within the financial sector by providing flexible payment solutions under a clear regulatory framework.

The CBO has advised consumers to carefully assess their budgets and financial commitments before using BNPL services and to ensure their ability to meet repayment obligations. The bank also stressed the importance of responsible purchasing decisions to maintain financial stability and support continued access to financial services.