Air Arabia has made history by becoming the first airline in the UAE to accept AE Coin, an AED-backed stablecoin, for flight bookings. This innovative move enables travelers to enjoy stable, secure, and low-cost crypto payments through the AEC Wallet App, marking a significant milestone in the airline industry.

In partnership with Al Maryah Community Bank (Mbank), the UAE’s first fully integrated digital bank, Air Arabia is now offering customers the option to pay using AE Coin. This collaboration signifies a transformative change in how payments are handled in the aviation sector, integrating blockchain technology with commercial air travel. The airline’s adoption of stablecoin payments reflects its commitment to digital innovation and enhancing customer convenience.

AE Coin is the UAE’s first stablecoin that is pegged directly to the Emirati dirham, maintaining a stable value at a 1:1 ratio. This ensures that users can have a predictable transaction experience, unlike traditional cryptocurrencies known for their price volatility. Customers of Air Arabia can choose the AEC Wallet option at checkout when booking tickets online, benefiting from a seamless and secure payment process.

With the introduction of AE Coin, Air Arabia is catering to the increasing demand for alternative digital payment options among tech-savvy consumers. Currently, this feature is available for ticket bookings through the airline’s official website, with future plans for broader adoption across other platforms.

Mbank, as a key player in this initiative, has developed the AEC Wallet App which allows users to store AE Coin and make easy payments. This aligns with Mbank’s mission to digitize financial services in the UAE while ensuring strong regulatory compliance and security. By integrating the AEC Wallet into Air Arabia’s payment system, both entities are pioneering a model that other sectors may adopt as they venture into the Web3 economy.

The stability and security of stablecoins like AE Coin make them an attractive option for users. By being pegged to the dirham, AE Coin provides a reliable transaction method, alleviating concerns over price fluctuations that often deter users from cryptocurrency solutions. Additionally, blockchain transactions enhance security by recording payments on a distributed ledger, reducing the risk of fraud.

Moreover, AE Coin features one of the lowest transaction fee structures in the digital payments space, improving payment efficiency for Air Arabia and potentially allowing the airline to pass savings on to its passengers.

The introduction of AE Coin is part of a wider push in the UAE to embrace blockchain technology across both public and private sectors. Notably, in April, major UAE organizations collaborated to launch this dirham-backed stablecoin, signifying the country’s ambition to establish itself as a global leader in financial technology and innovation.

Air Arabia’s integration of stablecoin payments may set a precedent for other regional and international airlines, as digital currencies gain broader acceptance worldwide. This partnership with Mbank represents a significant advancement in merging travel and fintech, offering passengers modern, secure, and efficient payment options while supporting the UAE’s vision for digital transformation.