Air Arabia becomes the first airline in the region to offer stablecoin-based payment

Air Arabia has become the first airline in the region to offer stablecoin-based payment. The Sharjah-based budget carrier has partnered with Al Maryah Community Bank (Mbank)

Air Arabia has become the first airline in the region to offer travelers the option to pay for flights using stablecoin.

The Sharjah-based budget carrier has partnered with Al Maryah Community Bank (Mbank), the UAE’s first fully integrated digital bank, to enable AE Coin payments for flight bookings via the AEC Wallet App.

Announcing the partnership on X, formerly Twitter, Air Arabia said that its customers can now select the AEC Wallet at checkout when booking via the airline’s website.

The integration follows the launch of dirham-backed stablecoin in April by three major companies in the UAE — HC, ADQ and First Abu Dhabi Bank. A form of cryptocurrency, stablecoins are designed to maintain their value by pegging their prices to a stable asset, such as fiat currency and gold, etc.

The UAE’s first AED-backed stablecoin, named AE Coin, is pegged 1:1 to the UAE dirham, rendering it inherently stable in value, highly secure, and characterized by minimal transaction fees.

The partnership will also create new avenues for travelers from diverse backgrounds to engage with Air Arabia’s services, ultimately amplifying the airline’s reach within the region and beyond.

“At Air Arabia, we are committed to embracing digitalisation across all of our operations and to introduce new and useful technologies that add value to our customers,” said Adel Al Ali, Group CEO of Air Arabia.

“This partnership with Mbank is a testament to our dedication to enhancing customer experience through technology by providing them with smart solutions that offer value, choice and flexibility.”

Air Arabia’s integration of Mbank’s services will provide seamless and efficient payment processing for travelers, leading to a heightened standard of convenience and a more pleasant journey overall.

“We are excited to partner with Air Arabia to integrate Mbank’s services and introduce a new era of digital payments in the travel industry,” said Mohammed Wassim Khayata, CEO of Mbank.

“As the UAE’s first fully integrated digital bank, we are continuously seeking innovative ways to serve our community and contribute to the nation’s financial ecosystem.

“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.”