UAE banks will introduce an OTP-free payment system in 2026, using advanced digital authentication to improve security, speed, and customer convenience for everyday banking transactions.
OTP-Free Banking in the UAE: Complete Guide to the 2026 Payment System
UAE banks are gradually phasing out SMS and email one-time passwords, introducing in-app transaction approvals that offer greater speed and security. This move follows an increase in phishing attacks, SIM-swap scams and OTP interception, which have exposed weaknesses in traditional verification methods.
With the updated system, customers confirm card payments inside their banking applications through secure push notifications. Authorisation is completed using built-in safeguards such as biometric authentication or smart pass PINs, keeping the entire process within the bank’s protected digital environment rather than external messaging platforms.
Emirates NBD is one of the early adopters of this approach, replacing SMS codes with app-based alerts for transaction confirmation. A recent test transaction demonstrated how this new verification method works in real-world use.
Step 1: Authorisation prompt
Once card details are submitted for an online purchase, customers do not see the usual OTP prompt. Instead, the payment page displays a notification asking them to approve the transaction through their bank’s mobile application.
Simultaneously, the bank sends a text message alerting the customer that a card transaction is pending approval, directing them to sign in to the ENBD X app and access the Activities section to confirm the payment.
Step 2: Pending payment
After signing into the app, users see an alert indicating an online card transaction is awaiting approval, prompting them to check the details and verify the payment.
Step 3: Review window
Selecting the alert takes users to a specific “Transaction Authorisation” page, where they are advised to confirm the payment details before continuing.
This page displays essential information, including the merchant’s name and the amount being charged, along with clear buttons to either accept or reject the transaction. A two-minute timer is also shown, indicating the time limit to respond before the approval request expires.
Step 4: Final approval
When a customer selects the approval option, the app asks for smart pass PIN verification. After successful authentication, the transaction is processed immediately, with no OTP required or exchanged.
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What happens now?
The shift away from OTPs is being rolled out in phases. From July 25, UAE banks began phasing out OTPs sent via SMS and email for certain digital and card-based transactions. During this transition period, customers may experience a mix of authentication methods depending on the bank, transaction type and channel used.
Banks are expected to fully discontinue SMS and email OTPs by March 2026, as part of a wider push by regulators to strengthen digital banking security.
