The future of travel payments is evolving, and the travel industry is wholly embracing digital payments, beyond online card transactions.
This week, the Sharjah based airline, Air Arabia announced its plans to be the forefront of this transformation and digital-first growth. The UAE’s low-cost airline confirmed that it will now be accepting crypto-payments.
In partnership with Al Maryah Community Bank (Mbank), Air Arabia has integrated AE Coin payments into its booking system via the AEC Wallet App, offering passengers a seamless and secure way to pay for their flights. As the first airline in the Middle East to adopt stablecoin payments, Air Arabia is leading the industry toward greater flexibility and innovation in digital transactions.
What is Stablecoin?
As Air Arabia announces the news that it will now accept AE Coin, a stablecoin regulated by the UAE, for flight bookings on its website, you might have questions surrounding the terminology... What exactly is a stablecoin?
Stablecoin refers to a type of cryptocurrency designed to maintain a stable value by being pegged to an external asset, such as a fiat currency (like the U.S. dollar), commodities (such as gold), or other financial instruments. Unlike traditional cryptocurrencies such as Bitcoin, which can experience significant price fluctuations, stablecoins aim to provide predictability and reliability, making them more suitable for everyday transactions and financial applications
AE Coin was officially approved by UAE authorities in December 2024, and is a stablecoin pegged 1:1 to the UAE dirham, ensuring price stability and reduced transaction risks. Unlike more volatile cryptocurrencies, stablecoins offer predictable value, making them an attractive option for travellers looking for secure, efficient payment methods.
Boosting Consumer Confidence in Digital Payments
As stablecoins gain mainstream acceptance, industry experts believe Air Arabia’s move will accelerate adoption across the aviation sector. Saj Ahmad, Chief Analyst at StrategicAero Research, notes that the stablecoin’s backing by the UAE Central Bank provides travellers with added assurance, reducing concerns over valuation fluctuations common in other cryptocurrencies.
“By introducing AE Coin as a payment option, we’re enhancing the customer experience with smart, cashless solutions that align with the UAE’s growing digital economy,” said Adel Ali, Air Arabia’s Group Chief Executive.
With stablecoin regulations now in place in the UAE, financial institutions and private entities alike are moving toward secure, regulated digital payment solutions.
The UAE’s adoption of digital currency frameworks has gained momentum in recent years, driven by initiatives such as the Digital Dirham strategy, launched by the UAE Central Bank in 2023. Several Abu Dhabi-based groups, including IHC, ADQ, and First Abu Dhabi Bank, have also announced their plans to launch a dirham-backed stablecoin, further reinforcing the country’s commitment to financial innovation.
How Travellers Can Use AE Coin
For passengers eager to take advantage of AE Coin payments, Air Arabia outlines a simple process:
- Download the AEC Wallet app via the App Store or Google Play.
- Create an account and verify identity through secure digital protocols.
- Top up the wallet via Mbank or other supported payment methods.
- Use AE Coin to book flights directly on the Air Arabia platform.
