The United Arab Emirates is making a big change in how people verify their digital activities. In the UAE, banking and internet financial services will stop using one-time passwords (OTPs) sent via SMS or email by March 31, 2026. Instead, users will confirm transactions directly through banking and service apps using safer methods like app alerts and biometrics. For more news updates, visit our Gulf Independent News page.
Why are we no longer using OTPs?
One-time passwords sent by text or email are common in digital banking, but they are becoming easier for criminals to hack. Scammers use phishing, SIM-swap attacks, and intercepted texts to exploit weaknesses that let them get around simple text-based codes. Because of this, the Central Bank of the UAE (CBUAE) has ordered a move to stronger, app-based identification that lowers these risks.
Concerns about cybersecurity and scams have been a major factor. One-time passwords (OTPs) can be stolen, which lets people move money or get into accounts without permission. As digital transfers increase, the need for stronger protection has become urgent, leading banks and regulators to use a safer model.
S&P Global Ratings analyst Puneet Tuli expects the UAE banking industry to have strong lending growth in 2025 with monetary policy relaxation and a good economic environment.
What is going to take over OTPs?
With the new method, people won’t have to type in codes that they get from texts or emails. Instead, deals will be approved through the app.
- You will get a push message to confirm your transaction.
- Biometric verification, like fingerprints or facial recognition, will make it more safe and personalised.
- Some banks might also back passkeys or tokenised security built into apps.
- For instance, Emirates NBD, which is one of the biggest banks in the UAE, is already replacing SMS OTPs with approvals in its banking app, ENBD X. Customers can accept payments right away in the app, no outside codes needed.
What This Means for People Who Use It
Customers have to:
- Make sure their banking apps are on the latest version.
- Allow fingerprint login and push alerts.
- Use their gadgets to authenticate most of the time.
- The change also means that transactions will be faster and have fewer delays than waiting for an SMS, which is especially helpful for people moving or in areas with bad network coverage.
Pros of Verification That Uses Apps
The new way of authenticating apps has a lot of benefits, such as:
- Better protection against message interception and scams.
- Transaction approvals are faster without having to wait for OTP texts.
- You can control transactions in real time in a safe app setting.
- Lowered the need to use phone services for identification.
When to Do the Implementation
In the middle of 2025, the change started, and banks were already using app-based identification for transactions done online and on cell phones. The CBUAE says that all registered financial institutions, such as banks, insurance companies, and payment providers, must make the change by March 31, 2026.
Last Words
The UAE‘s decision to replace SMS and email OTPs with app-based verification is a big step for both digital security and user experience. The UAE is making its digital banking system more efficient and safe for the future by using biometric login, push approvals, and in-app identification. This not only protects against cyber threats but also improves the overall system.
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