Abu Dhabi: A major banking security update is introduced by the UAE to strengthen the online transaction security. The Central Bank of the UAE announced that the one-time passwords (OTPs) sent via texts and email would gradually end. This shift to secure digital banking facilities in the country is implemented from July 25.
The latest guidelines from the Central Bank of the UAE made it mandatory for all banks to move users to app-based authentication for both local and international payments. The OTP texts and emails that were sent earlier are now being replaced by stronger app-based verification for safer online transactions.
By March 2026, UAE Banks Will Fully Shift to App-Based OTPs
The shift from text and email-based OTPs to app-based verification marked a major change from the long-term dependence on SMS and email OTPs. This UAE banking security update is introduced by the UAE Central Bank due to the increased incidents of cybercriminals targeting these authentication methods through cyber attacks like SIM swapping and phishing.
This change will be gradual and a complete shut down of SMS and email OTPs is mandatory for all banks to implement by March 2026. Instead of these traditional verification methods, banks now provide users the services to authenticate their local and international transactions through mobile-app based verification. A UAE Central Bank spokesperson confirmed that according to the orders issued by the bank, the practice of getting OTPs through SMS or email will be gradually withdrawn. The spokesperson added that bank users can now complete digital transactions easily by selecting the Authentication via App feature provided in their bank’s online application.
Aligned with the UAE’s Modernization Plan
Typically, OTPs, which are security codes, are used for high-value digital transactions, online shopping transactions, and QR-code purchases, and are valid for only one transaction. The move to shift from text or email based OTPs is a part of the Emirates wider plan to modernize its financial system and improve credibility for online banking services.
This rapid digital transition also reflects how the UAE’s banking sector is evolving with the kind of innovation you’d expect in the best startup story—leading with technology, security, and customer convenience.
Customers used to traditional authentication methods will take some time to get familiar with the latest authentication feature. Some bank users will have access to SMS and email OTPs during the transition phase. But by March 2026, these methods will be completely eliminated, making online transactions secure and safer with app-based verification.
More payments in the UAE are going digital, so keeping your phone charged at all times to verify big transactions and payment approvals is essential.
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