banking

CBO issues framework for small businesses to use e-payment services

February 1, 2021

Muscat: The Central Bank of Oman (CBO) has recently issued the procedure for onboarding the micro business entities in the Sultanate for e-payment acquiring services, by the Licensed Banks and Payment Service Providers (PSPs).

The new policy for enabling the e-payments for the micro business entities comes in line with CBO’s vision to promote e-payments in the country and to achieve the goal of less-cash society. Inclusion of these segments under the electronic payment services will support the objective of the national e-commerce strategy that is being implemented by various government agencies and the private sector.

The “Micro Business Entities” (MBEs) are those small business entities, which employ less than ten people, and carryout the legitimate business, with a permission from the local administration like Municipality license etc. The single taxi operation, gas delivery, water tankers, home business, street hawkers and small restaurants etc., are some of the examples of MBEs.

MBEs owned by Omani Nationals with a valid approval from competent government authorities (based on the nature of business activity) along with ID proof and bank account may approach any bank or PSP to avail the e-payment acquiring service.

The objective of this guideline by CBO is to enable e-payment acquiring for those legitimate businesses which are not required to obtain the Commercial Registration of their businesses from the Ministry of Commerce, Industry and Investment Promotion (MOCIIP). Since MOCIIP has permitted a list of activities that can be conducted by the MBEs with permission from the concerned authorities (and without Commercial Registration), this directive will enable licensed Banks and PSPs to seamlessly enable e-payment acquiring for such MBEs.

By availing the e-payment facility, the MBEs can enable e-payments to its customers for the goods purchased or the services provided, using Payment cards and mobile payments via the mobile banking and wallet apps.

omanobserver

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