PhonePe moves closer to UAE launch after Central Bank approval

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 footprint.

The approvals cover Retail Payment Services and Card Schemes and Stored Value Facilities, and follow the completion of the initial regulatory due diligence process.

PhonePe still needs 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 into the UAE’s existing payments ecosystem.

Plans to work with UAE payment rails

PhonePe also intends to explore opportunities to support Aani and Jaywan, the UAE’s domestic payment rails, using 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 intended to work alongside existing financial infrastructure and support payments for residents and businesses.

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 across NEOPAY and Network International terminals through existing cross-border payment arrangements.

The latest approval takes PhonePe closer to establishing a broader regulated presence in the UAE, although the company said it is still working with authorities to complete the requirements needed for final approval.

PhonePe said its proposed expansion is linked to the UAE’s Financial Infrastructure Transformation programme and the country’s wider push towards digital payments.

The UAE would become PhonePe’s first international market once the company receives final approval and begins commercial operations