28 May 2025

Air Arabia introduces stable cryptocurrency payments

Thanks to the partnership with Mbank, flights can now be purchased with AE Coin via the AEC Wallet app, for fast and secure online transactions

Air Arabia, a low-cost airline in the Middle East and North Africa, has entered into a strategic partnership with Al Maryah Community Bank (Mbank), the UAE's first fully integrated digital bank, to enable the purchase of airline tickets using AE Coin, the stablecoin pegged to the Emirates Dirham (AED).

The integration of payment via the AEC Wallet app represents a first in the region's airline industry, offering customers an innovative digital alternative that aligns with the UAE's vision of a digital-first economy.

AE Coin, being supported 1:1 by the Dirham, guarantees price stability, low commissions and greater security in transactions. Passengers can now select AEC Wallet as their payment method directly on the Air Arabia website, further simplifying the booking process. To get started, simply download the AEC Wallet app from the App Store or Google Play, create an account, verify your identity, and top up your wallet via Mbank or other enabled methods.

What is a stablecoin

Stablecoin is a cryptocurrency whose value is pegged to a stable asset, such as a fiat currency (e.g. dollar, euro, dirham) or a commodity (e.g. gold), to reduce the volatility typical of traditional cryptocurrencies such as Bitcoin or Ethereum.

It is a "stable" digital currency because its value does not fluctuate sharply. For example, a stablecoin pegged to the Emirati Dirham (such as AE Coin) is always worth 1 AED, making it ideal for payments, transfers, and everyday operations.

Types of stablecoins

Fiat-collateralized: backed by a real reserve of currency (e.g. AE Coin = 1 AED).
Crypto-collateralized: Backed by other cryptocurrencies.
Algorithmic: Value is stabilized by algorithms and smart contracts, with no real reserves.