There is a significant transformation in the mode of online shopping and payment of the people of the UAE. From Friday, July 25, banks will gradually turn off One-Time Passwords (OTPs) sent by SMS or by email. Initiated by the Central Bank of the UAE (CBUAE), this move will transform the way that the current digital payments are proved and yes this will mean that you have to keep your smart phone close and charged.
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What is changing?
Over the years, the people of the UAE have used the OTPs, which are delivered to their mobile phone numbers or email accounts, as an affirmation of online payments. Be it Dubai Summer Surprises shopping, QR code in a restaurant or grocery payment online, OTPs were used as preferred security layer.
However, the layer is changing now. Very soon, you would have to authenticate the digital transactions through the official mobile app of your bank, instead of OTPs. This is a move in the larger countrywide security enhancement plan and will be fully applicable in all banks by the month of March in 2026.
Why the Switch?
The CBUAE has stated that with the change in the OTPs, the online and mobile payments will be more secure and less vulnerable to phishing or intercepting. SMS and email-delivered OTPs are prone to cyber-threats, especially the problem of SIM swapping and email hacking.
With the new Authentication via App, the extra layer of security will be designed using your smart application on your bank account and will verify your identity instead of going through your bank account, leaving hackers with one less avenue to sneak through.
What You Need to Do
- Auto app based authentication: This will now be supported to confirm the transaction instead of an OTP which should take time to be received through SMS or through email.
- Update your bank’s mobile app: Make sure you are using the latest version of it.
- Stay connected and charged: Payments will be dependent on having access to an app and that means your phone battery, and internet connection is now a necessity when shopping.
How This Will Impact Your Daily Shopping
Majority of businesses in the UAE, whether in top-end boutiques or food courts and grocery stores, are promoting the use of digital payment methods, most notably QR codes and mobile wallets. This change in the security of banking transactions implies that the next time you order a meal in your favorite restaurant in Dubai or find a good deal on the Internet, you would require having your phone ready to accept the transaction via the application, not by opening your messages. Thus, Dubai continues its movement toward fully cashless economy, but the methods of approving payments remain quicker, cleverer and safer.
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What this means for your day-to-day shopping
- Greater ease of transactions when you are accustomed to the app-based process
- Enhanced security with less likelihood of fraud
- No more missed or lagging OTP messages because of network low coverage
- One-tap approvals done via using fingerprint or confirmation via in-app
Bottom Line
No more searching around your inbox trying to find a code. No more OTP text messages lost. New regulation will imply that you will have to have your bank app and a functional phone whenever you make an online purchase in the UAE. It is a revolutionary change, but it is such, which is going to make shopping smarter and safer to one and all.
UAE is not just an update of high technology in the banking system, but rather a transition to the order of shopping, paying, and the preservation of money. The country is trending towards a cashless, smarter future, which means that your smartphone with a charged battery and the app of your bank is now just as important as your wallet.