Air Arabia Becomes the First MENA Airline to Accept Crypto Payments

AE Coin, developed by Mbank, is the UAE’s first stablecoin fully backed by the Dirham and regulated by the Central Bank of the UAE. Pegged 1:1 to the AED, it ensures price stability, security, and low transaction fees. The coin operates under the Central Bank's Payment Token Services Regulation, which mandates strict compliance standards, including reserve backing and capital requirements.

The AEC Wallet App, developed by Mbank, facilitates transactions with AE Coin. Users can top up their wallets, send and receive AE Coin, and cash out in AED, all within a secure and user-friendly platform.

Adel Al Ali, Group Chief Executive Officer of Air Arabia, expressed enthusiasm about the partnership:

“We are proud to partner with Mbank to introduce AE Coin as a secure and innovative payment option for our customers. At Air Arabia, we are committed to embracing digitalization across our operations, and this partnership reflects our efforts to enhance our customer experience through technology”.

By integrating AE Coin into its payment system, Air Arabia offers passengers a seamless and secure booking experience. Customers can now select the AEC Wallet at checkout when booking flights via the airline’s website, providing a convenient alternative to traditional payment methods.

The partnership aligns with the UAE’s broader vision of fostering a digital-first economy. Mohammed Wassim Khayata, CEO of Mbank, highlighted the significance of this collaboration:

“Air Arabia’s strong reputation as a leading low-cost carrier operator serving a diverse customer base aligns perfectly with our mission to provide accessible, secure, and affordable digital payment solutions to our community. Through this partnership, we are not only enhancing the booking process but also contributing to the UAE’s broader goal of creating a truly inclusive, digitally empowered financial ecosystem”.

The UAE has been proactive in embracing blockchain technology and digital currencies. The approval and implementation of AE Coin demonstrate the country's commitment to integrating innovative financial solutions into various sectors, including aviation.

Air Arabia's adoption of AE Coin sets a precedent for other airlines in the region and globally. By offering stablecoin-based payments, the airline caters to the growing demand for digital payment options among tech-savvy consumers. This move could prompt other carriers to explore similar partnerships, potentially transforming the landscape of digital payments in the aviation industry.

Ramez Rafeek, General Manager of AED Stablecoin, emphasized the broader impact of the initiative:

“This partnership with Air Arabia is a key milestone for AE Coin as it makes digital currency even more accessible to everyday consumers. By integrating AE Coin into flight bookings, we are simplifying the payment experience for travelers and enabling a seamless cashless solution that aligns with the growing digital economy”.

As digital currencies gain traction, the integration of AE Coin into Air Arabia's payment system could pave the way for further innovations in the travel industry. The successful implementation of stablecoin payments may encourage other sectors to adopt similar technologies, fostering a more inclusive and efficient digital economy in the UAE and beyond.

For travelers interested in utilizing AE Coin for their bookings, the AEC Wallet App is available for download, offering a secure and streamlined payment experience.