emirates7 -
-In 2025, UAE banks began moving away from traditional OTPs sent via SMS or email and started replacing them with in-app transaction approvals designed to be faster and safer
OTP authentication through banks’ apps will help prevent scams carried out through social engineering on social media, a top UAE banker said.
In 2025, UAE banks began moving away from traditional one-time passwords (OTPs) sent via SMS or email and started replacing them with in-app transaction approvals designed to be faster and safer.
Banks in the UAE have a deadline of March 31, 2026, to phase out OTPs sent via SMS and email.
Raheel Ahmed, Group CEO of RAKBank, said the decision to shift to in-app authorisation was definitely the right move.
“It’s happening because the amount of fraud and scams globally has become a very big issue, and UAE residents have also been victims. A lot of these scams are happening through social engineering. The regulator and the banks felt that we needed to move from soft authentication to hard authentication. That’s why we have shifted away from SMS to getting authorisation through the app,” Ahmed told Khaleej Times in a recent interview.
Digital and e-commerce transactions are growing at a fast pace in the UAE; therefore, a safer method is required to address cybersecurity challenges.
It is estimated that digital transactions surged past the $60 billion mark in 2025, signalling a robust embrace of e-commerce across the nation. According to the Central Bank of the UAE, retail transactions under the UAE Funds Transfer System (UAEFTS) soared by 22.57 per cent in 2024, reaching 109.7 million transactions valued at Dh7.4 trillion, representing a 20.63 per cent increase in transaction value compared to the previous year.
The Abu Dhabi-listed lender has expanded its OTP authentication to more than 180,000 customers. “We are seeing very good take-up, with no issues and no friction. We are reaching authorisation rates of 80 per cent. We are educating customers through videos. So, the take-up is going quite well, and it will be a good thing for the industry. It will also drive much more digital banking. It’s a much safer and more convenient way for customers.”
RAKBank CEO said this initiative will also support the UAE’s vision of a cashless economy, as it will drive greater app usage.
“We are working very thoughtfully with elderly customers because they need technological literacy support. We are very conscious about ensuring the right support from the bank is provided to help people adopt the new technology, especially those who are not using the app,” he added.
-In 2025, UAE banks began moving away from traditional OTPs sent via SMS or email and started replacing them with in-app transaction approvals designed to be faster and safer
OTP authentication through banks’ apps will help prevent scams carried out through social engineering on social media, a top UAE banker said.
In 2025, UAE banks began moving away from traditional one-time passwords (OTPs) sent via SMS or email and started replacing them with in-app transaction approvals designed to be faster and safer.
Banks in the UAE have a deadline of March 31, 2026, to phase out OTPs sent via SMS and email.
Raheel Ahmed, Group CEO of RAKBank, said the decision to shift to in-app authorisation was definitely the right move.
“It’s happening because the amount of fraud and scams globally has become a very big issue, and UAE residents have also been victims. A lot of these scams are happening through social engineering. The regulator and the banks felt that we needed to move from soft authentication to hard authentication. That’s why we have shifted away from SMS to getting authorisation through the app,” Ahmed told Khaleej Times in a recent interview.
Digital and e-commerce transactions are growing at a fast pace in the UAE; therefore, a safer method is required to address cybersecurity challenges.
It is estimated that digital transactions surged past the $60 billion mark in 2025, signalling a robust embrace of e-commerce across the nation. According to the Central Bank of the UAE, retail transactions under the UAE Funds Transfer System (UAEFTS) soared by 22.57 per cent in 2024, reaching 109.7 million transactions valued at Dh7.4 trillion, representing a 20.63 per cent increase in transaction value compared to the previous year.
The Abu Dhabi-listed lender has expanded its OTP authentication to more than 180,000 customers. “We are seeing very good take-up, with no issues and no friction. We are reaching authorisation rates of 80 per cent. We are educating customers through videos. So, the take-up is going quite well, and it will be a good thing for the industry. It will also drive much more digital banking. It’s a much safer and more convenient way for customers.”
RAKBank CEO said this initiative will also support the UAE’s vision of a cashless economy, as it will drive greater app usage.
“We are working very thoughtfully with elderly customers because they need technological literacy support. We are very conscious about ensuring the right support from the bank is provided to help people adopt the new technology, especially those who are not using the app,” he added.
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