- UAE Central Bank mandates banks to switch to app-based OTP authentication.
- SMS and email OTPs to be fully discontinued by March 2026.
- Move aims to combat cyber threats like phishing and SIM swapping.
Starting July 25, 2025, banks in the UAE will begin a phased transition away from sending one-time passwords (OTPs) via SMS and email. As per new guidelines issued by the UAE Central Bank, customers will be required to verify financial transactions through secure app-based authentication instead.
The transition period will run through March 2026, during which time some users may still temporarily receive OTPs through traditional methods.
UAE Phases Out Traditional OTPs to Strengthen Digital Banking Security
The directive from the UAE Central Bank is part of a broader national initiative to modernize digital infrastructure and enhance cybersecurity. By mandating the use of in-app authentication, the banking sector is taking a proactive step toward protecting consumers from rapidly evolving cybercrime tactics. This shift is in line with global digital banking standards that prioritize encryption, biometric verification, and secure device recognition.
In-app authentication methods—such as biometric face or fingerprint scans, push notifications, and device-specific PINs—offer a more robust and tamper-proof alternative to OTPs sent over vulnerable channels. Unlike SMS or email, which can be intercepted or redirected, app-based methods ensure that authentication remains within a closed, encrypted environment on the user’s device.
For customers, this change will require adaptation, particularly among those who are less comfortable with technology or who do not use smartphones regularly. To ease this shift, banks across the UAE are expected to launch multilingual awareness campaigns, app tutorials, and dedicated customer service support to guide users through the transition process.
The initiative also aligns with the UAE’s broader vision of becoming a leader in secure financial technology. By investing in smarter systems and mandating uniform security upgrades across all financial institutions, the country aims to build long-term trust in its digital economy and protect consumer data on a national scale.
This move toward app-based OTP authentication marks a pivotal moment in the UAE’s digital transformation journey, offering enhanced protection in an increasingly connected world.
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