whatsapp

UAE Banks to End SMS OTPs by 2026, Shift to In-App Transaction Approvals

/media/GA_so9M75m..webp © Image Copyrights Title

UAE banks are moving to a major overhaul of how customers approve digital transactions, with SMS and email one-time passwords (OTPs) set to be fully discontinued by March 2026. Under new guidelines issued by the UAE Central Bank, banks are required to transition customers to in-app banking authorisation, a system designed to improve security while simplifying the approval process.

The shift affects millions of residents who regularly use mobile banking for payments, transfers, and online purchases. While SMS OTPs have long been the standard, regulators say the method no longer offers adequate protection against increasingly sophisticated cybercrime.

How in-app banking authorisation works

In-app authorisation allows customers to approve or decline transactions directly within their bank’s official mobile application, eliminating the need to receive or manually enter verification codes.

Typically, the process involves:

  • Initiating a transaction via the bank’s app or website

  • Receiving a push notification from the bank’s mobile app

  • Reviewing transaction details such as amount and recipient

  • Confirming identity using biometrics or a secure PIN

  • Approving or rejecting the transaction instantly

Because the entire process occurs inside a secured app environment, banks say it significantly reduces the risk of unauthorised access.

Why SMS OTPs are being phased out

According to banking and cybersecurity experts, SMS-based authentication has become increasingly vulnerable to fraud. Phishing scams, fake websites, and SIM-swap attacks have made it easier for criminals to intercept OTPs and access accounts.

In-app authorisation addresses these weaknesses by:

  • Preventing OTP interception through phishing attempts

  • Eliminating reliance on SIM cards, reducing SIM-swap fraud

  • Adding multiple security layers such as biometrics and device verification

  • Giving customers full visibility of transaction details before approval

Regulators say these safeguards offer stronger protection than SMS or email-based verification ever could.

A more convenient experience for customers

Beyond security, banks say the new system improves usability. Customers no longer need to wait for text messages or switch between apps, a common frustration when travelling or experiencing poor network coverage.

Approvals are faster, more intuitive, and fully integrated into the mobile banking experience. For frequent digital banking users, this change is expected to make everyday transactions smoother and more reliable.

When the change takes effect

UAE banks began gradually phasing out SMS and email OTPs from July 25, 2025. During the transition period, some customers may still receive OTPs for certain transactions. However, by March 2026, app-based authentication will become mandatory for both domestic and international transactions.

Major banks including Emirates NBD, Mashreq, ADCB, and First Abu Dhabi Bank have already rolled out in-app authentication features under names such as “Smart OTP” or “App-based Approval.”

What customers should do now

Customers are encouraged to:

  • Update their bank’s mobile app to the latest version

  • Enable biometric login features

  • Activate app-based authorisation through security settings

Banks have also published guides and customer support resources to help users complete the transition.

A shift in how banking security works

Regulators say the move reflects a broader effort to modernise the UAE’s financial infrastructure and reduce digital fraud. While the change may require a short adjustment period for some users, authorities believe it marks a significant step forward in securing online banking.

As SMS OTPs become a thing of the past, in-app authentication is set to become the new standard for safer, faster digital banking across the UAE.

Commnets 0
Leave A Comment

Related Posts
© Nasdaq Dubai Records $13.8 Billion in New Fixed-Income Listings in 2026

Nasdaq Dubai Records $13.8 Billion in New Fixed-Income Listings in 2026

Nasdaq Dubai has added 33 new fixed-income listings worth $13.8 billion since the start of 2026, reinforcing Dubai's position as one of the world's leading hubs for sukuk and debt capital markets. Int...

© Ajman Bank Raises $300 Million Through Debut AT1 Sukuk Priced at 6.5%

Ajman Bank Raises $300 Million Through Debut AT1 Sukuk Priced at 6.5%

Ajman Bank has successfully completed its inaugural $300 million Additional Tier 1 (AT1) Perpetual Non-Call 5.5-Year Sukuk, pricing the issuance at a 6.5% profit rate. The milestone transaction streng...

© Oil Prices Jump Over 3% as Iran Tensions Stoke Strait of Hormuz Supply Fears

Oil Prices Jump Over 3% as Iran Tensions Stoke Strait of Hormuz Supply Fears

Global oil prices surged more than 3% during early Asian trading on Wednesday after renewed military tensions involving Iran heightened concerns over the security of the Strait of Hormuz, a vital mari...

© OPEC+ Approves August Oil Output Increase as Crude Prices Ease

OPEC+ Approves August Oil Output Increase as Crude Prices Ease

Seven members of the OPEC+ alliance have agreed to increase their combined crude oil production by 188,000 barrels per day (bpd) in August, extending the group's gradual supply expansion as global oil...

© Oil Prices Hold Near $70 as Middle East Risk Premium Eases, Murban Crude Outperforms

Oil Prices Hold Near $70 as Middle East Risk Premium Eases, Murban Crude Outperforms

Global oil prices traded with little movement during Asian trading on Monday as easing geopolitical tensions in the Middle East offset expectations of firm seasonal fuel demand. While benchmark crude ...

© Singapore Seizes $42.5 Million Mansion in Nvidia Chip Smuggling Probe

Singapore Seizes $42.5 Million Mansion in Nvidia Chip Smuggling Probe

Singapore authorities have seized a luxury mansion worth S$55 million (US$42.5 million) as part of an ongoing investigation into an alleged Nvidia AI chip smuggling and money laundering network, offic...

© Bank of Baroda Pays $600 Million to Settle NMC Health Litigation

Bank of Baroda Pays $600 Million to Settle NMC Health Litigation

Bank of Baroda has agreed to pay $600 million to settle litigation related to the collapse of UAE-based healthcare company NMC Health, bringing an end to years of legal proceedings against the Indian ...

© UAE Fuel Prices Drop Sharply in July; Further Relief Possible if Global Oil Prices Stay Lower

UAE Fuel Prices Drop Sharply in July; Further Relief Possible if Global Oil Prices Stay Lower

UAE motorists are enjoying lower fuel prices in July after the country's monthly fuel price revision reflected a sharp decline in international crude oil prices, offering welcome relief following mont...

© Iran Reports 40 Million Barrels of Oil Exports After U.S. Blockade Ends

Iran Reports 40 Million Barrels of Oil Exports After U.S. Blockade Ends

Iran has announced that it exported more than 40 million barrels of crude oil since the United States lifted its naval blockade of Iranian ports earlier this month, marking a significant recovery in t...

© Norway's Crude Oil Production Exceeds Forecasts in May Despite Monthly Decline

Norway's Crude Oil Production Exceeds Forecasts in May Despite Monthly Decline

Norway's offshore oil industry delivered stronger-than-expected production in May, with crude output surpassing official government forecasts even as production eased from April's exceptionally high l...