UAE banks have decided to discontinue their use of traditional SMS and email-based OTP systems. All licensed financial institutions must stop using OTPs by the end of March 2026. The objectives of this security enhancement are to improve security and reduce online fraud.
Customers now complete their transactions using secure codes they find in the app. The mobile banking apps generate these codes internally, making them difficult for hackers to obtain.
The Commercial Bank of Dubai has launched its secure code system, which customers can access through their mobile application. The bank reported that more than 80 active users have signed up for the service. The majority of digital payments now use this feature for their transactions.
The customers have displayed a positive reaction to the product. The majority of people who tested the new system found it to be more secure and simpler than using one-time passwords.
Emirates NBD has achieved significant advancement. The bank has successfully transitioned more than 2.5 million customers to use in-app authentication for their card payments. The transition process followed an incremental approach.
The new system's implementation used this method to help customers understand the system. The bank confirmed that all digitally active users have now moved away from OTPs.
The deadline for banks to complete their transition work ends on March 31. The new security methods use in-app approval systems together with biometric authentication technology, which includes face recognition.
The UAE's digital payments market is experiencing rapid growth. The market will reach a value of $132 billion by 2028. Strong security systems need to become more essential because of this requirement.
Banks want to provide better services by improving their security, making their services safer and more efficient. The use of in-app authentication methods offers two benefits: it protects against fraud and makes it easier for users to access the system.
The banking sector in the United Arab Emirates has undergone its biggest transformation. With better security tools in place, customers can expect safer online transactions. The move demonstrates how banks are responding to the increasing demand for digital services.