The United Arab Emirates (UAE) is all set to begin the UAE OTP phase out 2025 from the 25th of July 2025. This means that the nation will transition from SMS and email OTPs to in-app authentication methods, a move led by the UAE Central Bank. It is an important update for anyone who depends on the digital banking services in the region.
The method of verification for financial transactions to send money locally or internationally is all set to change. Moreover, this change will surely affect you if you use OTPs from your phone or email to complete a bank transaction.
What is App-Based OTP Authentication?
You will not receive any OTP via SMS or email in this authentication process. Instead, you will get a secure pop-up within your banking app for real-time approval or denial. The following techniques might be used under this method:
- Biometric verification (Face ID/Fingerprint)
- PIN-based secure approvals
- Encrypted device-based authentication
This method will ensure that only authorized users can approve the transactions on the verified device. Moreover, this system could significantly decrease the likelihood of fraud.
Central Bank Leads with Secure Digital Vision
As per the new guidelines from the UAE central bank, all banks in the country are required to transition to app-based OTP authentication for extra security. The full phase-out of the SMS and email OTPs is scheduled for March 2026.
A spokesperson from a bank said to the Gulf News, “As per the guidelines issued by the UAE Central Bank, the method of getting OTPs via SMS or email will be phased out. Now, customers can complete an online transaction easily by choosing the “Authentication via app” feature in their smart bank application.”
Why Is This Shift of UAE OTP Phase Out 2025 Happening?
The financial sector in the UAE has a long dependence on the OTP via SMS and emails for online transaction security. However, these security methods are becoming more vulnerable to cyberattacks. We have listed the top potential cyberattacks through these methods:
- SIM Swapping
- Phishing Emails
- Man-in-the-middle attacks
SMS and email OTPs no longer meet the modem cybersecurity needs due to cybercriminals becoming more sophisticated. Remember, this change is part of the longer digital transformation strategy in the UAE to protect customers’ data and strengthen trust in the financial system of the nation.
What You Should Do Now
As we told you before, this system will directly impact the bank mobile app. Therefore, you need to follow some important steps mentioned below:
- Initially, you should update your Mobile Banking App to the latest version.
- After updating the banking app, you should enable App-Based OTP Authentication under security settings.
- It would also be best to ensure your phone is secure with biometrics (Face ID, fingerprint).
- If you face any difficulty with the new change, you should reach out to your bank’s customer service for support.
This new app-based OTP is directly integrated into the banking app, which transforms the authentication process smoother and more secure experience than ever in the history.
Part of UAE’s Fintech Revolution
This move is a part of the wider strategy of the UAE to modernize its financial infrastructure and boost trust in the financial system. In addition, it supports the long-standing goal of the UAE to decrease dependency on the outdated technology and prepare for the most recent changes.
Old methods are still active
Although the change might be uncomfortable for people used to traditional methods, this upgrade in security is a win for the online banking customers. For now, the SMS and emails OTPs will remain available for select users during the transition period. However, banks are requesting to update their apps and begin using this system as soon as possible. Moreover, these methods will be phased out over the next 20 months.
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Good move, big relief for many.