Sharjah-based budget carrier Air Arabia has partnered with Al Maryah Community Bank (Mbank) to offer a first-of-its-kind stablecoin-based payment for flight bookings. Mbank, is the UAE’s first fully integrated digital bank, which will now allow Air Arabia passengers to book flights using the AE Coin Payments through their AEC Wallet App, a press release stated.
The UAE’s first AED-backed stablecoin, AE Coin is pegged 1:1 to the UAE Dirham, ensuring price stability, security, and low transaction fees. Customers will have to follow a few steps to get started. Firstly, to use AE Coin one will have to download the AEC Wallet app. Then do the basics of creating your account, verify your identity, and top up your wallet via your Mbank account or other supported payment methods. Once that is done, you can simply select the AEC Wallet at checkout when booking on Air Arabia’s website.
“The newly introduced payment option through AEC Wallet reflects our ongoing efforts to adopt smart solutions that bring greater value, choice, and flexibility to our growing customer base,” said Adel Al Ali, Group Chief Executive Officer at Air Arabia.
Speaking on the use of the AE coin, issuer AED stablecoin’s general manager, Ramez Rafeek, said that the move would set a precedent and push for wider adoption of digital currencies. “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,” he added.
Stablecoins are becoming widely popular and disrupting traditional payment methods. In April, three UAE companies HC, ADQ and First Abu Dhabi Bank came together to launch a UAE dirham-backed stablecoin. These tokens are a form of cryptocurrency that maintains its value by pegging its price to a stable asset, such as fiat currency and gold.
