Key takeaways
- Sharjah-based Air Arabia becomes the first airline in the region to accept stablecoin payments for flight bookings, thanks to a partnership with Al Maryah Community Bank (Mbank).
- Customers can now pay using AE Coin, UAE’s first fully regulated, dirham-backed stablecoin, via the AEC Wallet app powered by Mbank.
- The initiative aligns with the UAE’s push toward a cashless, digital-first economy and highlights the practical use of stablecoins.
- This move strengthens the UAE’s fintech goals and sets a new standard for digital innovation in the regional aviation sector.
If you are a UAE resident, earning your salary in stablecoins or having the coins in your digital wallets, then there is some good news. Sharjah-based budget airline Air Arabia will be accepting stablecoin payments for flight bookings. This move comes through a new partnership with Al Maryah Community Bank (Mbank), the UAE’s first digital bank. The collaboration makes Air Arabia the first airline in the region to offer stablecoin-based payments.
Customers can now use AE Coin, a digital currency backed 1:1 by the UAE Dirham, to pay for tickets through the airline’s official website. Payments are processed via the AEC Wallet of Mbank, making the transaction fast and secure.
To start using the AE Coins, customers need to download the AEC Wallet app. Next, they need to create an account, complete the identification process, and recharge the wallet using the Mbank account or any other supported payment method. Once the wallet is set up, customers can easily choose the AEC Wallet as the payment option when booking on the Air Arabia website.
Air Arabia’s Group CEO, Adel Al Ali, said the new payment option reflects the airline’s focus on digital innovation. “We are proud to partner with Mbank to introduce AE Coin as a secure and innovative payment option for our customers,” he said.
What is the AED Stablecoin?
The AED Stablecoin, known as AE Coin, has been recently launched by AED Stablecoin LLC, a company that secured in-principle approval from the Central Bank of the UAE. This approval was granted in December 2024 under the Central Bank’s “Payment Token Services Regulation”, making AE Coin the first regulated AED-backed stablecoin in the UAE.
AE Coin is fully backed by the UAE Dirham, offering a stable and secure digital currency option. It aims to enhance the UAE’s digital economy by providing a reliable alternative to traditional cryptocurrencies, facilitating seamless and efficient digital transactions.
A Step Towards a Cashless Future
The adoption of the AE Coin supports the UAE’s broader push toward becoming a digital economy. Unlike cryptocurrencies like Bitcoin, stablecoins are tied to a stable asset like the UAE Dirham, making them less volatile and more practical for everyday use.
Mbank CEO Mohammed Wassim Khayata said the partnership with Air Arabia marks an important step in making digital payments more accessible. “This move helps improve the booking process and supports the UAE’s goal of building an inclusive, digitally empowered financial ecosystem,” he said.
The partnership sets a new standard for the aviation industry in the region and could encourage other airlines to follow suit. It also strengthens the UAE’s position as a hub for financial technology and innovation.
Read More: UAE’s Mbank Launches Regulated AED Escrow for Crypto Conversions via Changer.ae
