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Air Arabia partners with UAE bank to accept stablecoin payments

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Air Arabia partners with UAE bank to accept stablecoin payments
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Air Arabia | Official Website

Air Arabia has announced a partnership with Al Maryah Community Bank to allow passengers to pay for their tickets using cryptocurrency, specifically the AE Coin, through the AEC Wallet application. This makes Air Arabia the first airline in the region to accept stablecoin-based payments.

The AE Coin is backed by the UAE’s currency, the Dirham, at a 1:1 ratio, ensuring price stability and low transaction fees. Adel Al Ali, CEO of Air Arabia, emphasized the airline's commitment to enhancing customer experience through technology. “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.”

To use AE Coins for flight payments, passengers must download the AEC Wallet app, create an account, verify their identity, and add funds via a supported payment solution. Despite this lengthy process, Ramez Rafeek, General Manager of AED Stablecoin, considers this partnership a milestone for cryptocurrency. “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 stated.

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AE Coin was approved by the UAE Central Bank in December 2024 but currently lists no other partnerships for digital payment solutions on its website.

In related news within the airline industry and cryptocurrency integration trends: Spanish airline Vueling announced plans in 2022 to accept cryptocurrencies as payment but has not yet implemented these options. Conversely, airBaltic continues to offer cryptocurrency payment options and has ventured into non-fungible tokens (NFTs) sales.

As some airlines lose interest in cryptocurrencies amid their association with illegal activities like drug trade and shifting market trends towards technologies such as artificial intelligence (AI), services similar to online travel agencies continue facilitating crypto payments for airfares.

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