In-App Approval Replaces OTP: A Digital Shift

In-App Approval Replaces OTP: What It Means for Residents

The banking system in the United Arab Emirates is undergoing another significant transformation. Gradually phasing out the once-familiar one-time passwords (OTPs), banks are adopting in-app approvals. This shift is not just a technological upgrade; it's a response to increasing cybersecurity threats, particularly phishing and social engineering fraud that often exploit OTP system vulnerabilities.

Why are banks switching?

The primary motivation behind the switch is security. OTPs sent via SMS have long been a popular form of two-factor authentication; however, hackers have become increasingly adept at bypassing them. In phishing attacks, customers are often lured to fake websites where they unwittingly provide the OTP sent by their bank, thereby granting fraudsters permission for a transaction.

In-app approval, in contrast, requires active user engagement: the banking app displays the exact amount and transaction details before allowing approval. Since authorization occurs within the app, where the bank can protect data streams and authenticate devices, the likelihood of attacks is significantly reduced.

Customer reactions: security over convenience

Many who have previously fallen victim to OTP-based scams welcome the new system. One resident reported an incident where they intended to pay for a small-ticket item but ended up authorizing several large transactions due to a poorly phrased OTP message and a scammer's manipulation — all without receiving any clear feedback. By the time they realized what happened, more than a thousand dirhams had vanished from their account, and the bank did not reimburse the amount. Thanks to the in-app system, they now see the amount and the recipient before approving any transaction.

Others initially found the new method inconvenient. The familiar SMS-based OTP was quick and easy — receive the code, enter it, and the transaction proceeded. However, in-app approval requires more steps: opening the app, logging in, checking details, and then approving. Nonetheless, as more users experience the security advantages of the new system, opinions are shifting: speed is no longer the priority; security is.

The importance of internet connectivity

It's important to note that in-app approval only works when the device is internet-connected. This can sometimes pose difficulties where mobile data or Wi-Fi isn't available. Some residents reported delays in receiving approval requests, especially if the app is closed or notifications are disabled.

Despite this, many are willing to tolerate the extra few seconds and a stable internet connection to avoid falling victim to fraud again.

Which banks have implemented the new system?

Several leading UAE banks have already transitioned to the new identification system. In-app approvals are particularly used for credit card transactions, and gradually, other transaction types are being included. During the transition, banks sent detailed information to their clients and in several instances updated their mobile applications to ensure that the new feature works smoothly.

Changing financial behavior

The shift affects how we think about digital financial transactions. Speed and convenience have dominated the banking sector for years, but now we're entering an era where conscious usage and security take precedence. Customers need to pay closer attention to what they approve and the environment in which they conduct their transactions.

This also presents an educational opportunity: the new system forces everyone to not just mechanically follow instructions but to genuinely check what's happening with their account.

Summary

The decline of one-time passwords and the rise of in-app approvals signal a new era in UAE digital banking. While initial inconvenience may frustrate many, the long-term benefits — particularly protection against fraud — far outweigh these difficulties.

The new system is not just a technological enhancement but a shift in mindset: from now on, awareness and security take precedence over speed. The UAE's financial sector has once again demonstrated its ability to quickly respond to global challenges while keeping its clients' interests in focus.

(Source: based on bank announcements and testing.)