While Oman is at the forefront of digital payments, a quarter (25%) of transactions among consumers surveyed in the sultanate are still made in cash, according to the second edition of Visa’s Where Cash Hides research report.
Visa, a global leader in digital payments, conducted the survey across the GCC to examine cash usage trends and explore opportunities to further accelerate the shift towards digital payments. The research, based on a survey of 2,800 individuals across the region, looked into the overall frequency of, and motivations for, cash usage. It identifies cash-heavy categories and proposes simpler, more secure digital payment solutions for both consumers and local businesses.
In Oman, peer-to-peer (P2P) transactions (42%) and everyday spending (28%) account for a significant proportion of cash usage.
Within the P2P segment, tips (66%) were the top category where surveyed Omani consumers used cash, showing the biggest drop from 2023. This was followed by money exchanges between friends and family (53%) and property rent (24%). However, international money transfers through exchange houses saw an increase (23% in 2024 vs 14% in 2023), suggesting opportunities to advance secure, digital cross-border payments.
Everyday spending – such as offline taxis (63%), farmers’ markets (55%), and app-based taxis (33%) – are primarily where cash is used. Restaurants saw the most significant drop in cash usage (20% in 2024, down from 38% in 2023), indicating progress in digitising payments in these sectors.
The main reasons respondents prefer cash for P2P transactions are habit (32%) and convenience (28%). For everyday purchases, the leading reasons cited are speed (31%) and acceptance (26%).
According to Visa’s report, efforts to introduce convenient and secure solutions, such as Visa Direct (for P2P, tips, other disbursements, and remittances), Click to Pay (for a better online checkout experience), and Tap to Phone (a low-cost acceptance solution for SMEs, freelancers, and taxis), will further promote digital payments and increase card acceptance in the identified categories.
It said, ‘Encouraging mobile and contactless payments also presents a pathway to increasing digital payment usage for everyday expenses. This requires educating both banked and unbanked populations about the acceptance and security of digital payments.’
In a press statement, Manish Gautam, Visa’s Country Manager for Oman, said, “Despite progress with digital payment adoption in Oman, 25% of consumer transactions are still in cash. For Visa, this represents an opportunity to further drive financial inclusion and digitise commerce in the country. Our second edition of Where Cash Hides research highlights precisely where and how Visa, together with our partners, can help grow the digital economy.
“As a global leader in digital payments, Visa remains committed to supporting the Omani government’s cashless agenda and enabling local businesses to create a better payment experience for everyone, everywhere in the Sultanate.”
Despite cash usage, consumers’ overall reliance on cash remains low. Nearly half (49%) of respondents reported that only 1-2 out of their last 10 transactions were in cash. Just 2% of respondents claimed that all 10 of their most recent transactions were made with cash.