UAE Banks Move Beyond OTPs as App-Based Verification Nears Full Rollout

Khaleej Times reports that major UAE banks are replacing SMS and email one-time passwords with in-app verification as the sector moves to meet Central Bank security requirements by the end of March

UAE banks are preparing to complete the transition away from SMS- and email-based one-time passwords, with app-based verification emerging as the new standard for digital transaction security, according to reporting by Khaleej Times.

The shift comes as all licensed financial institutions in the UAE are required to eliminate traditional OTPs by the end of March 2026 in line with Central Bank regulations aimed at strengthening transaction security. The move reflects growing concern over the vulnerability of SMS-based authentication to fraud, phishing and interception.

As reported by Khaleej Times, Commercial Bank of Dubai said it had already introduced an in-app one-time secure code feature earlier this year and that all 3D Secure online transactions are now being processed through that system. The bank said customer uptake has been strong, with more than 80 percent of active users already registered for the in-app feature.

Emirates NBD has also made significant progress, telling Khaleej Times that it has completed migrating more than 2.5 million digitally active card customers to in-app authentication for 3D Secure card transactions via its mobile app. The bank said the transition was carried out gradually to ensure a smooth and secure experience for customers accustomed to SMS OTPs.

The report suggests that the banking sector’s move is part of a broader effort to modernize digital security and improve the customer experience. App-based verification is being positioned as both more secure and more seamless than legacy OTP systems, especially as banks respond to the global rise in online fraud.

Khaleej Times notes that the transition is unfolding against the backdrop of rapid growth in digital payments in the UAE. Citing UAE Banks Federation figures, the report says digital payments in the country are projected to rise to $132 billion by 2028, up from $43 billion in 2023.

The end of OTPs marks a notable shift in how consumers in the UAE will authorize banking transactions, with authentication increasingly moving into secure mobile environments rather than relying on codes sent through telecom or email channels. For the sector, the rollout highlights how cybersecurity, compliance, and user convenience are becoming increasingly intertwined in the next phase of digital banking.