Dubai: Many major UAE banks have started notifying their customers about a significant UAE banking upgrade. Under this change, the banks will not send OTPs through text message for online card payments. This major update will become effective on January 06, 2026.
This banking upgrade is not just a minor shift, as it is a compliance requirement issued by CBUAE. For a long time, SMS OTPs were used to authenticate online card transactions, but this will shift to app-based authentication. This move marks a major shift towards more secure and advanced digital verification methods.
Table of Contents
UAE Online Payments Get Safer: SMS OTPs Discontinued
Banks sent text alerts to customers on December 31, 2025, confirming a major change in online card payment security. The messages informed users that they would no longer send SMS OTPs for online card transactions starting January 6. Banks will verify these payments through their official mobile banking apps.
Hackers and online criminals are using complex and advanced ways to steal sensitive financial data from weak links in these SMS OTPs. As cyber threats are becoming more complicated, banks are switching to safer alternatives.
By replacing SMS OTPs with mobile app approvals, the UAE banks will be able to better protect their customers during online transactions. They have already shared messages with their customers to notify them about the change and urge them to download and activate their bank’s official mobile app.
What Is the Purpose of Ending SMS OTPs?
Based on reports by Emarat Al Youm, this move follows a change that started earlier in 2025. In July last year, UAE banks started replacing OTPs for online transactions and money transfers with in-app approval. For every cardholder in the Emirates, this banking update means a new payment experience.
Here are the main reasons that will help you understand why banks are ending SMS OTPs:
- SIM Swapping: Cybercriminals are benefiting from SIM swapping fraud. This means they deceive a mobile provider into transferring a customer’s phone number to a SIM card they control. Through this, they are getting access to SMS OTPs directly.
- Phishing Scams: This is another major fraud for which the UAE banking upgrade is being introduced. Fraudsters trick bank customers by creating exactly the same websites as their bank or delivery service. Most people can’t tell the difference between the fraud and the original sites, and mistakenly provide them access to their sensitive financial information, including OTPs.
- Interception: Hackers can even intercept SMS OTPs to steal financial information. However, the shift to in-app approvals will make card payment authentication in the UAE more secure. It will surely lower the risks of fraud associated with online payments.
What Do UAE Banks’ Customers Need to Do Now?
An official document released by CBUAE cited instructions and confirmed that UAE banks will gradually stop using OTPs sent by SMS and email channels. Customers will be encouraged to complete online transactions using a secure mobile app verification method. This upgrade will improve transaction security and reduce fraud risks.
By October 2025, last year, many banks had fully completed this transition, and now they depend on mobile apps to verify online payments. With in-app approvals, customers can simply authenticate transactions, like tapping or swiping to confirm a payment. Some banks are planning to keep SMS OTPs for customers who prefer not to switch to mobile app approvals. However, they will not hold responsibility for any fraud-related losses.
As this UAE banking upgrade is not just a minor technical update, it will affect every customer who shops online and uses the net banking facility. During the adjustment period of this change, they need to update their mobile app to the latest version. They must make sure to enable push notifications and biometric login in the app settings. They must create their accounts on their official mobile apps and complete any verification step before January 6.
The End of SMS Era: UAE’s Upgrade to App-Based Authentication
Residents in the UAE need to understand how important updating their mobile bank apps is under the newly introduced banking update. After SMS OTPs are discontinued, they won’t be able to verify online payments using text codes. Their transactions will be declined if not approved through the bank’s app.
Regulators have issued a mandatory compliance notice that SMS and email OTPs must be phased out by the end of March this year. This move reflects the UAE’s efforts towards aligning its banking practices with global best practices in financial security and innovation.
Source Link: UAE banks to end SMS OTPs for online card payments from January 6
