India payments giant secures in-principle approval for two UAE licences.
Dubai: PhonePe has moved a step closer to launching payment services in the UAE after securing in-principle approval from the Central Bank of the UAE for two licences, marking the Indian company’s first international regulatory approval.
The approvals cover Retail Payment Services, Card Schemes and Stored Value Facilities, following the completion of the initial regulatory due diligence process.
PhonePe still requires final regulatory approval before it can begin commercial operations in the UAE.
The company said it plans to work with regional banks, licensed payment service providers and local technology vendors once final approval is secured, with a focus on integrating its services into the UAE’s existing payments ecosystem.
Plans to work with UAE payment rails
PhonePe also plans to explore opportunities to support Aani and Jaywan, the UAE’s domestic payment rails, through its full-stack technology platform.
The company said its technology architecture currently handles large transaction volumes in India, where it serves more than 700 million registered users and 50 million merchants.
Its proposed UAE deployment is designed to work alongside the country’s existing financial infrastructure and support payments for residents and businesses.
By combining world-class technology with local partnerships, PhonePe intends to support the strong economic and trade corridors connecting the UAE, India, and global markets, while striving to deliver elevated everyday payment experiences across the Emirates.
Ritesh Pai, CEO and Executive Director, International Payments at PhonePe
Indian travellers can already use PhonePe in UAE
PhonePe already has a presence in the UAE through its partnership with NPCI International Payments Limited.
Indian travellers can currently use PhonePe to scan local QR codes and make payments at NEOPAY and Network International terminals through existing cross-border payment arrangements.
The latest approval brings PhonePe closer to establishing a broader regulated presence in the UAE, although the company said it is continuing to work with authorities to complete the requirements for final approval.
PhonePe said its proposed expansion aligns with the UAE’s Financial Infrastructure Transformation programme and the country’s broader push towards digital payments.
The UAE would become PhonePe’s first international market once the company secures final regulatory approval and begins commercial operations.
