UAE Banks Phase Out SMS OTPs – Key Changes for Business Owners
- 01.08.2025
- Posted by: Uwe Hohmann
- Categories: Compliance, Company Setup, Dubai
UAE banks began transitioning away from SMS and email OTPs (One-Time Passwords) on 25.07.2025, moving to app-based authentication for enhanced security. Here is what this means for your business banking and how to navigate the ongoing changes.
The Change in Brief
The UAE Central Bank launched a phased elimination of traditional OTP methods last week, with complete implementation expected by March 2026. This shift represents an important update to UAE banking security protocols and is now actively affecting how individuals and businesses authenticate their digital transactions.
Banks across the UAE will require customers to use mobile app verification instead of receiving codes via SMS or email. This change applies to both local and international business transactions, making it essential for individuals and businesses to prepare for the transition.
Important for Your Business
Traditional SMS-based OTPs have become increasingly vulnerable to sophisticated cyber attacks. Fraudsters have developed methods to intercept these codes, putting business accounts at risk. App-based authentication creates a more secure environment by eliminating the transmission of codes through potentially compromised channels.
For businesses managing multiple accounts or conducting frequent international transfers, this change will initially require adjustment to new authentication workflows. However, the enhanced security measures should provide greater peace of mind when handling company finances.
What You Need to Do Right Now
The transition is already underway, and early preparation will prevent disruption to your business operations. If you have not already done so, contact your bank immediately to understand their specific timeline and requirements for setting up app-based authentication.
Download and activate your bank’s mobile app as a priority. Most UAE banks have prepared their applications for this transition, incorporating advanced security features that make transactions more secure than traditional OTP methods.
Ensure your authorized signatories and finance team members complete the setup process well before the March 2026 deadline. While banks are maintaining SMS and email OTPs during this transition period, some institutions may move faster than others in implementing the changes.
Current Implementation Status
Since the rollout began last week, different banks are implementing the changes at varying speeds. Some institutions have already begun requiring app-based authentication for certain transaction types, while others are still in the early phases of customer notification.
Check with your specific bank about their current status and upcoming milestones. Many customers have reported receiving communications from their banks in recent days outlining their individual transition schedules.
Impact on Daily Business Banking
As banks implement these changes, your business banking routine will become more streamlined. Instead of waiting for SMS codes, transactions will be approved directly through your bank’s mobile application.
This change particularly benefits businesses conducting frequent international payments, as app-based authentication typically processes faster than traditional OTP methods. The improved security should also reduce the likelihood of transaction delays due to security concerns.
Preparing Your Team
Brief your finance team and authorized signatories about the upcoming changes. Each person who conducts banking on behalf of your company will need to set up app-based authentication on their personal devices.
Consider establishing backup procedures in case team members are unavailable or experience technical issues with their mobile devices. Many banks are developing additional security measures to handle such scenarios while maintaining the enhanced protection that app-based authentication provides.
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