Oman launches mobile payment clearing and switching system

A unique system for mobile payment clearing and switching (MpClear) was launched on Sunday, said the Central Bank of Oman (CBO) in a statement. This will enhance the payment infrastructure of the country.

With the launch of this system, Oman is the first country within the GCC countries to implement such system under the Central Bank leadership. 

It will also help attain one more milestone in providing a safe and secure fund transfer mechanism through the medium of mobile by just using a mobile number to complete the payment transfer instantly. This is expected to provide ease of use, convenience and further promote electronic payments in the Sultanate of Oman.

The MpClear system promises interoperability and a unified switching and clearing services between various mobile banking systems operated by banks thereby promoting enhanced efficiency and security of payments effected through the medium of mobile. Given the ubiquity of the mobile, such mobile based payments aim at addressing financial inclusion in the Sultanate of Oman and support the National E-government Strategy thus progressing to a less cash economy at the National level. Apart from its role as a switching and clearing platform, MpClear facilitates providing a collection of reporting and monitoring services at the fingertips of central bank which aids in informed decision making.

The uniqueness of MpClear lies in its functionality to conduct a fund transfer with the use of just a mobile number and accommodation of the unbanked sector, thereby giving an impetus to financial inclusion in the Sultanate. With MpClear, users can conduct a wide range of payments such as, Person-to-Person (P2P), Person to Business (P2B), Person to Government (P2G), Person to Merchant (P2M), Business to Person (B2P), Government to Person (G2P) and Business-to-Business (B2B).

Hamood bin Sangour Al Zadjali, executive president of the Central Bank of Oman, hailed the banking community in the country and the implementing company ProgressSoft, for the unstinted support extended and enormous efforts taken by them for fulfilling the national objective of CBO in providing a safe, sound and secure payment infrastructure in the country.

Ali Al Jabri, In-Charge Payment Systems Department at CBO, said “Being ahead of the curve in payment systems has been the goal of CBO, with the ultimate aim of providing convenience, safe and ease of operations for fund transfers. MpClear System offers fund transfer via mobile an easier and fast payment channel with just a mobile number. The benefits of the same will be evidenced by the stakeholders/customers soon”.

AbdulRazak Ali Issa, Chief Executive, Bank Muscat said; “Bank Muscat is delighted to welcome the Mobile payment clearing and switching MpClear System introducing yet another innovative and advanced digital payment channel in Oman. We thank the CBO for all measures to align the banking sector in line with the government’s ambitious e-Government project. In conformity with international standards, the MpClear Project provides security and convenience for transactions through mobile phones as Bank Muscat remains committed to promoting the new facility as a preferred mode of payment.”

Khalid Al Kayed, CEO of Bank Nizwa, said, “We are proud to join hands with the Central Bank of Oman to do our part in helping realize the ambitions of the Sultanate’s e-government strategy. By adopting this highly efficient and world-class solution, our customers will enjoy instant payment services, greater efficiency when shopping online and the highest levels of security. With the introduction of the Bank Nizwa e-wallet application, even non-customers will have the opportunity to experience the comprehensive end-to-end payment services of MpClear System.”

Andrew Long, CEO, HSBC Bank Oman said, “At HSBC Bank Oman technology has always played a pivotal role in strengthening our customer service and providing a safer banking experience for our customers. Implementing the MpClear System is yet another step towards meeting our customers' evolving expectations.”

Commenting on launching the initiative Abdul Hakeem Omar Al Ojaili – CEO of BankDhofar noted: “We are delighted to be part of the Central Bank of Oman’s initiative of the mobile clearing system within our mobile banking application. This is a new system for money transfer between banks providing a safe, secure and efficient payment infrastructure in the Sultanate. This will save time and guarantee safe and fast payment between individuals and business customers as it reiterates BankDhofar’s commitment to excel and grow in all business areas, contribute to the development of the country’s economy and meet the aspirations of all internal and external stakeholders. This initiative is a significant addition to our multi award winning mobile banking application which also offers a diverse range of instant banking services including the flagship instant card-less cash transaction, instant money transfer to customer of any bank in Oman, instant mobile top-up, instant phone bill payment, as well as instant card activation and blocking through BankDhofar’s call center or mobile application.”

Sasi Kumar, Acting CEO of Bank Sohar said: “We congratulate the Central Bank of Oman for introducing Oman's banking sector to progressive technology and innovation. The CBO has been raising the industry's standard with constant updates and service efficiencies to provide better banking excellence. This project further sets Oman on an evolutionary path by redefining the way customers experience banking. It offers them alacrity, convenience and ease of access to banking solutions anytime, anywhere. We at Bank Sohar believe in developing products and services that directly address our customers’ needs when it comes to reliability, alacrity and convenience, in an era when digitization is the norm. Given our history for pursuing innovative technology and cutting-edge financial solutions, we bring a strong suite of efficiencies to the project, which will help give it sustainability, better market reach and, ultimately, turn it into a success.”

Ahmed Al-Musalmi CEO of NBO said: “The MpClear is an excellent initiative lead by CBO that will help the Sultanate’s economy become more cashless while empowering the unbanked segment through financial inclusion. The National Bank of Oman is proud to be part of this initiative and supports CBO and the government across this new phase of digital transformation.”