PhonePe moves closer to UAE launch after Central Bank approval

India payments giant secures in-principle approval for two UAE licences

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Nivetha Dayanand, Assistant Business Editor
From UPI pioneer to public markets: The growth of PhonePe’s consumer ecosystem
From UPI pioneer to public markets: The growth of PhonePe’s consumer ecosystem

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.

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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.

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 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

Nivetha Dayanand
Nivetha DayanandAssistant Business Editor
Nivetha Dayanand is Assistant Business Editor at Gulf News, covering aviation, financial markets and commodities. A business and financial journalist with a strong interest in multimedia storytelling, she regularly takes complex financial and economic subjects beyond the written word, producing explainer videos that make them easier for a wider audience to understand. Nivetha has interviewed senior policymakers, business leaders and global financial figures both on and off camera. Her past guests include UAE Minister of Economy and Tourism Abdulla bin Touq Al Marri, Khaled bin Alwaleed Al Saud, a member of the House of Saud and the founder and CEO of KBW Ventures, Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund and Indian ministers Hardeep Singh Puri and N. Chandrababu Naidu. She has also hosted and moderated panels, conferences and awards shows, bringing her newsroom experience to live conversations on business, finance and the economy. An Erasmus Mundus journalism alum, Nivetha is drawn to stories that affect people directly and to reporting that gives a platform to voices that might otherwise go unheard. She was among the first journalists to speak to Petrofac employees in the UAE about unpaid salaries, broke the news of the planned demolition of Dubai’s well-known “Toyota Building”, and helped set the record straight on widely circulated claims that a giant replica of the Moon was coming to Dubai. More recently, her exclusive interview with EDGE Group CEO Hamad Al Marar revealed how the UAE-based defence group deployed its systems along the country’s shore border and established a geofence around the UAE within 48 hours of the February 28 escalation. Prior to joining Gulf News, Nivetha worked at ITP Media, where she helped launch Finance Middle East, a new publication covering the region’s financial sector. Her role spanned reporting and editing, video production, interviews and events. Across print, digital, and video, she focuses on finding the people behind business stories and explaining why those stories matter to the audience reading or watching them.

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