OIB becomes first in Oman to launch Visa smart card

Oman International Bank (OIB) has become the first bank in Oman and the fifth local one in the Gulf to launch Visa's debit card with chip technology.

The UAE-based Emirates Bank International (EBI), National Bank of Abu Dhabi (NBAD), National Bank of Kuwait (NBK) and Bank of Qatar are the others to have introduced this technology which was first adopted by France in 1978.

Jonathan Cabedo, deputy general manager of Visa International's Middle East office, pointed out that the new chip cards offer maximum security. He said the risk of fraud was higher with the conventional cards with magnetic stripes.

Cabedo said two global payment companies are working in close coordination with central banks and law enforcement authorities to study the implication of such fraudulent practices on the safety of existing credit and debit cards in circulation.

The deputy general manager of OIB, and head of banking services, Said Al Kindy, claimed that card-related fraud in Oman is minimal. "Credit card companies, banks, police and merchants involved in the plastic cash business here are working together to curb fraud," he added.

Amit Desai, chief manager, card centre at OIB, said: "At the moment we have introduced debit cards only for private banking customers, but we intend to extend this to other customers as well in the future."

Cabedo said that Oman is the fastest growing market for credit cards in the world.

"We have crossed the half-million mark in Oman. At the current rate of growth, Oman will cross one million cards soon." Visa has a 23 per cent share in the market.