UAE’s banking is about to look very different. Say goodbye to the OTPs that pop up on your phone before completing a payment, as that step is being phased out. By March 2026, banks across the country will switch to app-based transaction approvals, allowing customers to authorise payments directly within their banking apps. The change is designed to reduce fraud and create a more secure way to approve card payments. If you want to know how the new system will work, then keep reading.
Also Read: 8 Major Changes Coming To UAE In 2026
A New Banking Experience – All You Need to Know About App Approvals
In today’s digital world, almost everything is done online. From making reservations to online shopping, there’s a lot that gets done with a few screen taps. Until recently, all your online payments were confirmed via an OTP (one-time password). However, in 2026, UAE banks are officially moving away from OTPs sent via SMS or email, replacing them with in-app transaction approvals that are faster, safer and harder for fraudsters to intercept. The shift comes in response to a rise in phishing scams, SIM swap fraud, and OTP interception, which have exposed weaknesses in SMS-based verification. Under this new system, customers approve card payments directly in their banking apps via push notifications, biometric authentication, or smart pass PINs. This will help keep the entire process within a secure, bank-controlled environment.
How Will The New Process Work?
This transition follows new guidelines issued by the UAE Central Bank, which require all banks to adopt app-based authentication for both domestic and international transactions. By March 2026, SMS and email OTPs will be discontinued entirely. Several banks have already begun rolling out the change, including Emirates NBD. Under this new process, instead of receiving an OTP, customers receive a push notification prompting them to approve the transaction in the bank’s mobile app. Here’s how the new process is expected to work.
Step 1: Transaction Authorisation Prompt
After entering card details for an online payment, customers no longer see an OTP request. You’ll now receive a message on the payment page prompting you to authorise the transaction via your bank’s mobile app. At the same time, an SMS alert is sent to notify the customer that a card payment requires approval, directing them to log in to the ENBD X app and go to the Activities section.
Step 2: Payment Notification
Once you’re logged into the app, you’ll see a notification that a pending online card payment is awaiting authorisation. Tapping the alert opens the payment request.
Step 3: Review The transaction
The app displays a dedicated Authorise Transaction screen that shows key details, such as the merchant name and transaction amount. Customers are expected to review everything carefully before proceeding. When making payments, a countdown timer shows how long the approval request will remain active for before it expires.
Step 4: Final Approval
To complete your payment, you simply approve the transaction and confirm using your smart pass PIN or biometric verification. The payment is processed instantly, after which no OTP’s are required.
What To Expect!
Anything related to banking can be overwhelming. To ensure a seamless transition, the move away from OTPs is being implemented in phases. Since July, UAE banks have started phasing out SMS and email OTPs for some digital and card-based transactions. During this transition, you may notice different authentication methods depending on the bank, transaction type or payment channel. By March 2026, all UAE banks are expected to fully switch to app-based authentication. This marks a major step toward strengthening digital banking security across the country. For all the latest updates, be sure to keep reading Gulf Buzz!
