In a landmark move to boost digital banking security, banks across the UAE will begin phasing out one-time passwords (OTPs) sent via SMS and email starting Friday, July 25, 2025. The transition comes in line with new directives issued by the UAE Central Bank, mandating the adoption of app-based authentication for all local and international banking transactions.

The shift will be implemented in stages, with customers required to activate app-based verification systems to continue approving transactions. The complete phase-out of SMS and email OTPs is expected by March 2026.

The UAE Central Bank’s initiative marks a significant departure from traditional OTP delivery methods, which have increasingly become targets for cyber threats. In contrast, app-based verification offers a more secure and reliable method for transaction approvals, leveraging advanced technology to safeguard user data and banking operations.

During the transition period, banks may continue offering SMS and email OTPs to select customers; however, these options will be gradually retired in favour of enhanced mobile app-based systems.

This move is part of the UAE’s broader strategy to modernize its financial ecosystem and build stronger public trust in digital banking platforms.

According to the Central Bank, the new framework aims to not only strengthen cybersecurity but also align the UAE’s banking infrastructure with global best practices.